With more than $177 million in loans for fiscal year 2023, , ranking 25 out of more than 1,500 banks nationwide. United issued 196 loans, with an average loan size of more than $900,000.
“Small companies generate 1.5 million jobs a year and account for nearly 65% of new jobs in America,” said Rich Bradshaw, President and Chief Banking Officer for United. “Entrepreneurs are vital to our communities, and we are proud to provide critical financing to enable them to make their businesses successful.”
SBA 7(a) loans, which are available in amounts up to $5 million, are ideal for smaller businesses due to lower down payments, competitive interest rates, and longer-term financing. In August, the process of eligibility determination for SBA-backed loans changed. In a move to reduce the operational burden on SBA lenders and enhance overall efficiency, the SBA now takes the responsibility of eligibility assessment in-house, using new technology. This shift is poised to create a more streamlined and responsive lending system, supporting small businesses seeking financial backing to thrive and expand.
Read More about Fintech : Top 10 YouTube Fintech Channels For Banking
“The new rules give small businesses a better shot at qualifying, while also keeping more cash on hand, which is important given the rising costs of goods,” said Beth Hallock, President of SBA Lending for United. “Program improvements will expand access to capital for small businesses, especially small-dollar loans, and increase protection against fraud as part of rulemaking finalized in April.”
When applying for an SBA loan, factors determining acceptance include credit score and history, earnings and cash flow, and the equity and collateral of the application. These factors have been expanded to increase the number and kinds of businesses able to obtain loans, helping narrow the gaps that exist for certain communities accessing capital.
“SBA loans work like conventional business loans. You apply through a lender, and, if approved, you receive funds that must be paid back at regular intervals,” said Hallock. “There are also key differences. SBA loans are often more affordable, and it is often easier to qualify for one.”
United has more than 200 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national lending platform in healthcare (pharmacy, veterinarian, dental, and medical professionals) and franchise businesses. Additionally, United has a national equipment financing subsidiary, Navitas Credit Corp.
United is an SBA Preferred Lender, which enables the bank to offer a full range of SBA loan products and make final credit decisions on behalf of the SBA. In contrast, non-preferred lenders must submit a full application to the SBA for approval, which makes the process take longer.
In addition to general SBA loans, United offers specialized SBA loans for businesses in the dental, medical, pharmacy, veterinary, and franchise industries. The bank is also a multi-award recipient of the Greenwich Excellence Awards, including the 2022 awards for Small Business Banking–Likelihood to Recommend (South) and Overall Satisfaction (South).
Latest Fintech Insights : What Is Fintech Data Management?
[To share your insights with us, please write to pghosh@itechseries.com ]
