Independent Banker - March 2019 - 33

" We don't see clients as transactions. We
want to grow with them over the years. "
-Jennifer DeJean, D.L. Evans Bank
mission. " You need to decide on the
front end why you are doing it, " Skelton
says. " There are different schools
of thought on small-business lending.
Some banks scour the country looking
for deals that they can book. There
are other banks, such as ours, that are
involved in small-business lending on
a local level, because we want to support
and grow our communities, and
maybe even enter into new communities
that adjoin our footprint, so that
we can grow our footprint. "
Training and communication are
also important, says Skelton. " Obviously,
government-guaranteed lending
is very involved and technical, and
it requires keeping up with all of the
existing and new regulations, " he says.
The fourth key is initial buy-in,
and then subsequent referrals, from
business development officers or
commercial lenders within the bank.
" I can't physically be in every market
and find every deal, " Skelton says.
" They provide us with introductions to
these target customers, so we can visit
with them. "
Finally, Skelton considers personal
service, above and beyond just the
loan, to be critical to small-business
lending success. " We don't just hand
people a stack of forms and tell them
to fill them out and bring them back, "
he says. " We work with customers
every step of the way. "
For example, Skelton frequently
receives calls from people who just
have an idea for a business and then
talk about the background experience
they have. " They want to start businesses,
but don't know how, " he says.
" We will help small-business customers
craft leases with their landlords,
guide them in their entity formation,
help them come up with budgets and
pro forma numbers, provide them
with access to our resources and guide
them to other useful resources. "
Specialized loan officers
For $3 billion-asset Live Oak Bank in
Wilmington, N.C., niche lending has
been the key to small-business lending
success. The bank was named the 2018
Lender of the Year by the U.S. Department
of Agriculture's Rural Business
and Cooperative Service. It was recognized
for being the highest-volume
lender nationwide for the USDA's
Rural Business-Cooperative loan guarantee
programs, which encompass the
Rural Energy for America Program
(REAP) and the Business & Industry
(B&I) loan program.
" It is unique that a startup bank such
as ours with no branches has the ability
to lend on a nationwide basis, " says
Jordan Blanchard, general manager of
the bank's energy and environmental
lending team. " Our original charter
allows us to lend in all 50 states. "
The bank started out in 2005 with a
focus on SBA lending and is now the
nation's largest SBA lender. It then
expanded to USDA lending. " The most
important key for us is to embrace the
process, " Blanchard says. " Before most
banks enter the world of USDA lending,
they typically come from the world
of SBA lending, because they are both
government-guarantee programs. "
While SBA lending is a complex
process, it is nowhere near as complex
as USDA lending, according
to Blanchard. For example, to get
Independent Banker - March 2019

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