Independent Banker - May 2019 - 23

100 most active SBA 7(a) lenders by volume,
according to the U.S. Small Business Administration.
He's taught countless people through blogs
and the forums he's held for nearly 30 years.
His community bank's widespread educational
efforts on SBA lending take a number of forms.
One of McLaughlin's most popular blog posts, " 5
Tips When Considering an SBA Loan, " appears
on Banner Bank's website. The community bank
includes a copy in business packets to provide
during seminars and sends similar information
to prospects and potential customers. Banner
Bank also writes advertorials focused on SBA
education that appear in local business journals.
Finally, it takes advantage of social media,
including YouTube, to get the word out on SBA
lending. " I also conduct a number of professional
education seminars for CPAs, after-hours events
for clients and SBA education seminars for the
general public, " McLaughlin says.
In the future, Banner Bank might expand its
current pilot program with new SBA lenders
moving into key markets to generate traction. " In
terms of SBA marketing in specific, our marketing
group definitely wants to see more blog posts
and more advertorials, plus a greater emphasis
on social media and YouTube, " McLaughlin says.
The expertise of an SBA bank
Another community bank with a commitment to
SBA lending is $1 billion-asset Seacoast Commerce
Bank in San Diego, Calif., which actually
identifies itself as an SBA bank.
All this outreach isn't solely focused on sales,
McLaughlin says. Of course, since the bank does
have such a reputation for SBA loan education, it
reaps the benefits from customers and prospects.
" The last thing I want is for a borrower to think
that we are selling, " he notes.
Banner Bank goes beyond educating customers.
It teaches its own personnel. " We want to
push our SBA knowledge out into all of the communities
we serve, " says McLaughlin, referring
to Banner Bank's more than 200 branches in
Washington, Oregon, California and Idaho. " As a
result, our SBA lenders, which we call SBA liaisons,
are very well educated. "
Customers interested in SBA loans can deal
with local expertise so they don't have to contact
McLaughlin's office in Bothell for more information.
" This approach has been very successful, "
he says. " The reason is that customers and prospects
would rather deal with our SBA liaisons in
their own communities. "
When customers and prospects show interest in
SBA loans, bank professionals " drill down " to individualized
education, McLaughlin says. And this
education can change over time based on business
trends. The people attending McLaughlin's seminars
have shifted over time from entrepreneurs
who were starting, or thinking about starting, a
business to more seasoned business owners who
are looking to take the next step.
Quick stat
60%
of smallbusiness
loans
under $1 million
are made by
community
banks
Source: ICBA
Seacoast formed a separate SBA division in
late 2009 and has funded almost 2,000 SBA 7(a)
loans worth $1.71 billion through the end of
2018. Like Banner Bank, Seacoast is a member
of the SBA's 100 most active SBA 7(a) lenders by
volume. In the third quarter of 2018, the community
bank was the 14th largest SBA lender in the
country, approving 297 loans worth $293 million.
Seacoast's focus is on small businesses that
want to buy, construct or refinance commercial
real estate to be used by their small business.
To educate customers and prospects about
opportunities associated with SBA loans, Seacoast
features a webpage devoted exclusively
to SBA loans, which is supplemented with two
pages that provide more in-depth information.
To educate customers individually about SBA
loan opportunities, the bank tailors its education
to their specific concerns.
" The most common misconception that customers
and prospects have about SBA loans is
that it is a cumbersome process that takes a long
time, " says David Bartram, SBA division manager,
senior executive vice president and chief
operating officer for Seacoast. " If a client works
with a lender that doesn't have strong SBA expertise,
this is true. "
Seacoast, on the other hand, is able to approve
requests within four days and fund within 30
days. It performs as much of the documentation
as possible because it has the expertise to do so.
" Our 78 SBA employees average 15-plus years of
SBA experience, and we know the SBA Standard
Operations Procedures better than most lenders, "
Bartram says.
The bank extends its SBA education beyond
its customers, prospects and staff to key people
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