Zions Bank approved 869 SBA 7(a) loans in Utah totaling $58.7 million for the fiscal year ended Sept. 30, 2009. These loans represent 38 percent of the 2,247 SBA-backed loans approved in the state during fiscal year 2009.

“At a time when questions are being raised about banks’ willingness to make loans, Zions Bank is proud to continue to demonstrate our institution-wide commitment to supporting small businesses as they build and drive our economies,” said Zions Bank President and CEO Scott Anderson. “Even in a challenging environment, the fact that we approved just 40 fewer SBA loans than we did in fiscal year 2008 further demonstrates our willingness to lend to small businesses.”

Zions Bank also leads all other financial institutions in Utah in marketing SBA loans to women-owned businesses. During fiscal year 2009, 28 percent (or 252) of the SBA loans approved by Zions Bank were to women and minorities. Additionally, 14 percent of loans approved by Zions were to rural businesses.

SBA 7(a) loans are the most basic and most used type of loan in SBA’s business programs. The program offers up to 25-year, fully amortized loans that result in lower monthly payments for the borrower. Proceeds from the 7(a) program may be used for most business purposes, including the purchase of real estate for business operations, acquisition of equipment, and working capital.

The 7(a) loan category also includes SBA’s new America’s Recovery Capital (ARC) loans, designed to provide an immediate infusion of capital to struggling but viable small businesses. Zions Bank became the first financial institution in the nation to receive authorization by the SBA to extend a new ARC loan to a small business client on June 15, 2009.

Through the end of fiscal year 2009, Zions Bank approved 82 percent of all ARC loans in the SBA’s Utah District, or 162 loans totaling $5.3 million.

Nationwide, small firms with fewer than 500 employees represent 99.9 percent of the 26.8 million businesses in America. Small businesses employ about 50 percent of the private workforce, account for more than half of the nation’s private sector output, and are the principal source of new jobs in the U.S. economy. In Utah, about 97 percent of businesses qualify as “small businesses” (businesses with fewer than 500 workers).

As of mid-August, Zions Bank approved nearly 81 percent of all ARC loans in Utah and Idaho to date. Of 116 ARC loans authorized in Utah and Idaho, 95 were approved through Zions Bank. Due in part to Zions Bank’s ARC loan volume, Utah ranks third in the nation for the number of ARC loans made to businesses, behind Wisconsin and Minnesota, respectively.

“The ARC loan I received from Zions Bank will help give me the cushion my business needs during the current housing slump,” said Matt Pearson, owner of Aspen Countertops, based in Murray, Utah. “Now, I can focus on generating new clients.”

Additionally, Zions Bank ranked as the nation’s seventh largest provider of all SBA loans in a third quarter report of the SBA’s 2009 fiscal year. As of June 30, 2009, Zions Bank had approved 664 loans totaling $54.2 million, ranking only behind several large national banks.

Zions Bank senior vice presidents Lori Chillingworth and Cece Mitchell were both invited by the SBA to be part of a focus group of financial institutions to help develop the ARC loan program. The result is an attractive loan product that provides the critical capital to support businesses that are working hard to make it through tough economic times. ARC loans are interest-free to the borrower and have no SBA fees associated with them. The deferred-payment loans of up to $35,000 are for qualifying for-profit small businesses that are established and viable, but need short-term help to make their principal and interest payments on existing qualifying debt.

As part of the Recovery Act, the SBA’s ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance, but as a result of the tough economy, are struggling to make debt payments. ARC loans allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs. For example, making loan payments on existing loans with proceeds from an ARC loan can allow a business to focus more funds on core operations, such as buying inventory or making payroll.

Zions Bank President and CEO Scott Anderson believes ARC loans can help businesses like Innovative Excavation continue to grow and support its employees, helping to fuel the economy.

“Our institution-wide support for small businesses is not only reflected in our ranking as a top SBA lender in Utah for 15 years and in Idaho for the past seven years. Since we became involved in the development of ARC loans and were the first bank in the country to close an ARC loan, we have launched an extensive training effort for loan officers to become experts in this valuable program that could help so many entrepreneurs during this challenging economic environment,” said Anderson.

ARC loans will be offered by SBA lenders like Zions Bank for as long as funding is available or until September 30, 2010, whichever comes first.

Source: Press Release, dated 17 August 2009.

Image from HikingArtist.com used under Creative Commons License BY-NC-SA 2.0

Zions Bank has been honored by the U.S. Small Business Administration (SBA) as First Mortgage Lender of the Year for its excellence in making first mortgage loans in conjunction with SBA 504 projects for commercial owner-occupied real estate. The award was presented May 18 by the SBA at a reception in Washington, D.C. as part of National Small Business Week.

“In the early 1990s, Zions Bank’s National Real Estate Department became a pioneer in originating loans through local banks nationwide. Today, we’re honored to receive this recognition from the SBA, and we’re proud to be the leading nationwide secondary market SBA 504 first mortgage lender for small business commercial real estate loans,” said Zions Bank President and CEO Scott Anderson.

Zions Bank’s National Real Estate referral sources include over 200 banks and other lenders who work with Zions to co-originate or sell commercial real estate loans — including SBA 504 loans — that may be outside their lending parameters or capacity. The division typically originates $1 billion or more in new business annually, with an average loan size of just under $1 million. Typically, more than half of the National Real Estate’s yearly fundings are SBA 504 loans.

Zions Bank’s National Real Estate Department has grown to 110 employees who work to maintain a 65 percent market share in the small commercial real estate loan secondary market. The department has 10 experienced business development officers with offices in Cleveland, Dallas, Los Angeles, Memphis, Phoenix, Portland, Salt Lake City, Sacramento, San Diego, and Ft. Lauderdale. Today, Zions Bank’s National Real Estate Department services over 6,500 loans totaling more than $5 billion in all 50 states.

Zions Bank has previously received several SBA recognitions, including Export Lender of the Year in 2006, Region VIII Financial Services Champion of the Year in 2005, and the designation as one of the top Ten Outstanding SBA Lenders from across the U.S. in 2004. Zions has also been the Utah District’s top 7(a) SBA lender for the past 15 consecutive years, and has been the top SBA lender in Idaho’s Boise District for the past seven consecutive years.

*Artwork from gentlepurespace under Creative Commons license at Flickr.com.

ARE BANKS LENDING MONEY TO SMALL BUSINESSES?
ZIONS AD CAMPAIGN SAYS “YES” |

At a time when media reports reflect concern over banks’ ability to lend during the credit crunch, Zions Bank has launched an aggressive advertising campaign to let small business owners know it has funds to help them succeed. The campaign includes radio spots on several stations throughout Utah and Idaho and print advertisements in major daily and weekly publications across the bank’s market area.

“In uncertain economic times, many people choose to go into business for themselves — to finally act on the business plan they’ve been hatching for years and to realize their dreams. These courageous entrepreneurs need not only the support of consumers, but also the help of financial experts at Zions Bank who know the ins and outs of business finance,” said Scott Anderson, president and CEO of Zions Bank.

One intrepid entrepreneur in Utah County (Utah) is Laura Jarman, who launched the La De Da! Baby Chic boutique in Highland last November. Located at 5374 W. 11000 N. Alpine Hwy., La De Da! offers unique apparel, gifts and accessories for infants and children as well as mommy-to-be. In addition, Jarman already operates the Dear Lizzie boutique and bistro in Highland, where lunch and sweet treats are served daily and product for sale range from European-inspired home accents and gifts to women’s apparel.

In November, Jarman received a U.S. Small Business Administration 7(a) loan from Zions Bank.
In today’s economic climate, small business owners like Jarman are in a unique position to help create jobs and add fuel to the market. Small businesses play a fundamental role in the economy. They employ about half of the private workforce, pay nearly 45 percent of the total private payroll, and create 70 percent of the new jobs in the country, according to the U.S. Small Business Administration. In Utah, about 97 percent of businesses qualify as “small businesses” (businesses with fewer than 500 workers).

“We all need small businesses to succeed,” said Anderson. “That’s why banks like Zions are working hard to help infuse small businesses with the capital they need to grow and create jobs.”

He adds that when consumers support locally owned businesses like La De Da! and Dear Lizzie, they help boost the local tax base and improve the quality of life in their neighborhood’s schools and parks.

At a time when questions are being raised about banks’ willingness to make loans, Zions Bank recently announced that it ranked as the top lender of U.S. Small Business Administration 7(a) loans in Utah for the fifteenth consecutive year. The bank also leads all other financial institutions in Utah in marketing SBA loans to women- and minority-owned businesses.

Zions Bank Press Release – February 10, 2009

*Artwork from ramsey everydaypants under Creative Commons license at Flickr.com.