Category Archives: Banking Services

Refinance Your Conventional Business Loan into a SBA 504 Loan

leticia-scearce_biltmore-bankThe SBA Debt Refinance Program is back! Does your small business have a maturing or high-cost conventional loan for real estate, buildings or equipment? The long-term, fixed rate financing available through the SBA Debt Refinance Program can help small businesses that face significant balloon payments, require financial flexibility or want to take cash out from appreciating assets for expansion.

Under the new program, small businesses that refinance into a SBA 504 loan can take advantage of lower rates, fixed for 20 years, to lighten their monthly debt payments, improve cash flow and stabilize operations.

These parameters can help determine whether this program might be a good fit for your business:

  • The debt to be refinanced must be at least two years old.
  • The debt to be refinanced must be current during the last 12 months.
  • Eligible small businesses can obtain up to 90 percent financing for secured debt and qualified business debt.
  • Eligible fixed assets include real estate and equipment.
  • Cash out for operating expenses, including debt consolidation, is limited to 75 percent loan-to-value.
  • Cash out can be used for eligible business expenses (salaries, rent, utilities, inventory).
  • Existing government guaranteed loans are not eligible to be refinanced.
  • The eligible debt being refinanced is for the outstanding principal balance.

Other conditions or qualification requirements may apply. 

For those considering applying for a new loan, we offer a variety of government guaranteed loan products that require less cash investment up front and offer longer loan terms, which can help bridge the gap for businesses that otherwise would not have access to capital.

  • SBA 7(a), 504 and 504 refinance
  • SBA Export Express Export Working Capital International Trade
  • USDA Business & Industry Loans Food Desert Rural Energy for America Program (REAP)
  • Export Import Bank of U.S.

If you would like more information on the SBA 504 Refinance Program or any of our government-guaranteed loan products, please contact Leticia Scearce, Senior Vice President/Government Guaranteed Lending Manager, at lscearce@biltmorebankaz.com or (602) 445-6511.

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Government Guaranteed Loans and Helping Businesses Grow

leticia-scearce_biltmore-bankSecuring a business loan can be vital to a company’s growth or even survival. Senior Vice President Leticia Scearce, head of Grandpoint’s Government Guaranteed Lending division, shares some great loan options that are available through various government programs which can be facilitated by the Bank and its divisions, Regents Bank, The Biltmore Bank of Arizona and Bank of Tucson.

Q: What should people know about the government guaranteed lending programs that are available?

LS: Government guaranteed loans are there to help small- and medium-sized businesses, since these loans require less cash investment up front and offer longer loan terms. Government guaranteed loans can help bridge the gap for small- and medium-sized businesses that otherwise would not have access to capital.  Also, many businesses that could qualify for conventional loans opt for government guaranteed loans instead because they require less money down and have longer terms. When opting for guaranteed loans, clients usually pay two percent more in fees for 10 to 15 percent cash down versus the 30 percent down for conventional loans.

The most well-known government guaranteed loan programs are those offered by the Small Business Administration (SBA) loans.  These loan programs can include financing for owner-occupied real estate purchase or construction, refinance, equipment, business acquisition, exporting and short term working capital (revolving lines of credit).

Another very attractive loan program is available through the United States Department of Agriculture (USDA).  Eligible USDA loans can be for real estate and equipment (including renewable energy projects) in rural or farming areas and can have a loan term up to 30 years. In addition, there are a few subprograms under the USDA loan program umbrella that allow us to finance projects in urban areas that have a local foods component – food manufacturing, distribution, retail, etc. The USDA loan product is attractive because it offers the longest term of the government guaranteed loan programs; is more flexible in pricing and prepayment penalties; has less oversight with franchises and dealer agreements; and has less regulation overall. It needs to be mentioned that even though the program is offered under the U.S. Department of Agriculture, the financing of eligible projects / properties under this program do not need to be agriculture related.  Rather, its availability is contingent on the current population levels of a specific census tract in which the business or property will be located.

Q: What is the current status of government guaranteed lending?

LS: We’re hitting record levels of government guaranteed lending as the economy is improving. One reason is that the banks’ lending standards for conventional loans haven’t changed much since the recession, which makes guaranteed loans more attainable and attractive.

Q: Have you seen any big changes in the government guaranteed lending programs that business owners should know about?

LS: We saw a big change recently in the SBA 504 program. This product offers low cash down and a 20-year fixed rate on the client’s second loan, which is financed by the SBA. The agency now allows the client to refinance existing loans on owner-occupied real estate and allows some cash out provisions, helping the small business owner access capital for long-term working capital.

Q: How do the members of the government guaranteed lending program for Grandpoint Bank and its divisions work together to assist clients?

LS: We are tasked with helping all our regions expand our government guaranteed lending, which is a combination of SBA loans, USDA loans and export loans. I’m based in Phoenix at The Biltmore Bank of Arizona, along with Debbie Lindsay, our loan administrator. My team’s loan specialist/underwriter, Marchette Wesley, and portfolio servicer, Hector Palomares, are in California, and I travel to our offices throughout Arizona, California and Washington to train our staff about our guaranteed loan platform.  We assist our relationship managers in deepening their knowledge base with the different loan products we have available. We also train our credit staff so they can recognize when a conventional loan isn’t suited for a client and a government guaranteed loan could offer a great alternative.

Mark Phillips, Grandpoint Capital’s chief credit officer, and David Ross, Grandpoint Bank’s chief credit officer, and our regional bank presidents have been very supportive of our division and expansion.

Q: How is Grandpoint Bank, and its divisions, differentiating itself in this type of lending?

LS: Our Southern California and Vancouver, Washington markets do a lot of export business, so with our large geographic footprint and sizable lending capacity, we can target more middle market customers.   In Arizona, we have more rural opportunities, and thus the USDA programs are a great fit. We are already one of the top lenders in the state for USDA loans.  We are looking forward to expanding our footprint in USDA lending in all of our markets.   Seventy to 90 percent of government guaranteed loans don’t count against a bank’s legal lending limits, so we have more capacity to service larger companies as well.

Q: How did your career lead you to becoming the head of the government guaranteed lending division?

LS: I was drawn to SBA lending in 2007 when I was working in commercial lending at a community bank here in Scottsdale. I further progressed into this niche lending sector during the recession when the credit markets froze and guaranteed loans became even more essential. When I joined The Biltmore Bank of Arizona in 2011, I helped established the SBA department, and a year later I pushed for expansion into other government guaranteed loan programs such as USDA loans and export financing.  A diverse, more inclusive platform was important to our brand and to our customer base, and I was fortunate that key management at Biltmore trusted and supported my recommendations. In 2012, Biltmore Bank was acquired by Grandpoint Bank, and with the backing of a larger bank, it allowed us to expand our lending efforts even further.  Personally, Grandpoint gave me access to a larger platform with great management resources to help expand and develop this lending niche. Prior to the acquisition, our government guaranteed lending activity was small, but many of the banks acquired by Grandpoint around the same time had SBA loan portfolios, so my servicing and liquidation role increased. Soon thereafter, our senior management team decided to expand this niche of lending for the whole family of banks. I’m pleased to have a very amazing team. We all have to stay up to date on policies and procedures for all of these programs. This type of lending makes you a better banker, because it requires a complex level of understanding and mastery of detail; it makes you sharper.

Q: Are you involved in any civic work?

LS: I serve on the City of Phoenix Investment Advisory Board, which advises the city on its entire investment portfolio.

Q: What do you like to do for fun?

LS: My husband and I are into cycling, and I love to hike. I also enjoy cooking and baking, and I’m a wine connoisseur. We have visited more than 100 wineries, and I’d love to become a sommelier someday. More immediately, I’d like to look at growth and loan opportunities in the wine industries throughout the various regions we serve. I also enjoy reading, gardening, and I am a big tennis fan!

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Regents Bank Business Banking Services

Regents Bank San Diego Business Banking Services

Regents Bank: Entrepreneurs Helping Entrepreneurs

 

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Postal Service Changes Will Alter American Bill Payment Habits

Regents Bank San Diego Business Bank Online Banking Services

Regents Bank San Diego Online Banking Services

On May 15th of this year, barring any last minute delays, there will be sweeping changes to the way many Americans pay their bills. For quite some time the Postal Service has been in negotiations with Congress over how and when changes to mail processing and delivery will occur. American Banker reports, “The deal with lawmakers comes on the heels of several recent proposals by the Postal Service to examine the possible closure of more than half its 487 mail processing centers and elimination of overnight First Class mail delivery. The agency has also proposed cutting Saturday delivery as part of efforts to reduce operating costs by $20 billion by 2015.”

For many of us the changes will not create a major disruption in how we conduct our business. One recent study revealed that 61% of Americans are now using online banking and bill pay services. This number has been steadily increasing, as witnessed by the New York Times report in 2006 stating that 35% of us were paying our bills online. The number of Americans utilizing online banking will very likely grow at an even faster rate as postal services are trimmed back.

Online banking is nothing new to Regents Bank. We offer a complete menu of online banking services which can be found at https://www.regentsbank.com/#/business-online-banking-services. Electronic statements are available as well. Signing up for online banking with Regents is as easy as filling out the necessary forms online for our existing customers, and new customers can have the services added when they open their new accounts.

Visit a Regents Bank office today to add online services, open a new account, or talk personally with one of our experienced bankers about which are the best options for you. We have branch offices conveniently located in San Diego, La Jolla, El Cajon and Carlsbad, as well as our office in Vancouver, WA.

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Regents Bank San Diego Offers A Complete Menu of Business and Personal Banking Services

Regents Bank San Diego, with offices in downtown San Diego, La Jolla, El Cajon and Carlsbad, CA, as well as an office in Vancouver, WA provides its business and personal clients with a full complement of banking services. If establishing a relationship with a new bank in 2012 is on your list of changes to make, Regents offers any banking service you’ll need. More important, we will establish a relationship with you and will take a personal interest in you and your financial needs and objectives. And that’s not an empty promise. We call it “Consultative Banking”. It’s how we’ve done business for over 10 years and it’s how we’ve established a reputation as a leading San Diego business bank.

For our business customers we offer services such as:

  • Business Checking and Savings Accounts
  • Telephone Banking
  • Commercial Loans
  • Cash Management
  • International Banking
  • Online Banking Services
  • Credit Card Services

and much more. But the most important service we offer is our expertise. Regents San Diego Business Bank services are available elsewhere, but our expertise isn’t. We’ve assembled a team of some of the most talented and committed professional bankers you’ll ever find. They are ready, willing and able to help streamline your banking process, as well as offer you unique and creative ideas to help you grow your business. Regents Bank is so much more than products.

Visit our website and read the “About Regents” section of the site at https://www.regentsbank.com/#/about-regents. You’ll see we’re more than just another bank offering a commodity of services. We offer our experience and our sincere interest in helping you grow. That’s Regents Bank San Diego. That’s why we’re here for you today, and we’ll be here for you tomorrow.

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Regents Bank: Vancouver, WA Branch

Regents Bank, Vancouver, WA

Regents Bank, Vancouver WA

Established in 2003, the Vancouver, WA branch office of Regents Bank has become a vibrant member of the community. Comprised of an extremely talented team of experience bankers, Regents provides its clients with the very best in business banking services, such as business checking accounts, commercial loans and lines of credit, real estate loans, online banking, and credit card services.

But just as important, our bankers provide you with an intangible that is very hard to come by, entrepreneurial experience. The average Regents banker has more than 25 years of  banking experience and is highly qualified to offer consultative banking services to our clients. We’ve been through very prosperous economic conditions, and we’ve survived, and even thrived, in challenging economies like we’re currently experiencing.

We’re located at 2001 SE Columbia River Drive, Suite 101 in Vancouver. Feel free to visit us or call us at 360-693-0786. Tami Nesburg, Sr. Vice President and Vancouver Branch Manager, as well as the entire Vancouver team will be happy to meet with you and talk specifically about your business and what Regents Bank can do for you.

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Regents Bank Offers Warehouse Lines of Credit in San Diego County

Darla Clark, Executive V.P. Regents Bank San Diego

Darla Clark, Executive Vice President Regents Bank San Diego

Contributed by Darla Clark, Executive Vice President, Regents Bank San Diego

Did you know that Regents Bank has a unit that offers warehouse lines of credit to Mortgage Bankers in San Diego County?

  • We offer lines up to $5,000,000.
  • Regents Bank has local operations in San Diego which expedites the funding of loans for the mortgage companies.
  • There are net worth requirements for the mortgage companies and the owners personally guaranty the warehouse line.
  • Conventional loans – Frannie, Freddie,  and VA loans.  All “A” paper are allowed for funding.

The warehouse line of credit is used to fund pre-sold mortgage loans that have been preapproved by the investor.  The investor (large banks like BOA, Wells, Sun Trust) after receiving the original promissory note, purchase the loan off the warehouse line of credit.

The Bank receives the original promissory note from the mortgage company that is similar to a  “security” ( mortgage backed security) that is then sent to the investor for purchase.  The investor  will then wire funds to the bank for the purchase and the funds are used to pay off the advance on the warehouse.  The bank charges $150.00 per package funded on the line plus the interest for the time the advance is outstanding on the warehouse line of credit.

At Regents Bank you’ll find we offer services and solutions for all of your commercial banking needs. For more information on warehouse banking and our complete portfolio of business banking services, contact Regents Bank San Diego:

Darla Clark
Executive Vice President
Regents Bank
501 W. Broadway #550
San Diego, Ca. 92101
619-446-5590
858-967-9088 cell
www.regentsbank.com
MLS #744782

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Successful Business Succession Planning: Part I

Business Continuity Planning by Regents Bank

Succession Planning and the development of a comprehensive and effective business succession plan for a business can be a complex process. There are many important decisions to make that will have long term effects on ownership, employees and, at times, family members. Having trusted advisors assisting with this planning often times makes the difference between a smooth transition or one filled with obstacles.

Among the many decisions that must be made are:

  • Will the current owner(s) retain any equity position?
  • Will there be an agreed upon time period for current ownership to remain on board and assist with the transition for the new ownership or management team?
  • Where will the funding come from for a buyout? (Employee Stock Ownership Program (ESOP), previously funded Buy/Sell Agreement, Owner financing, third party financing etc.)?
  • If there are several interested parties in taking ownership, which will be the best fit and offer the greatest chance of successful continuation of the business?
  • Which advisors will be called upon to help make unbiased decisions that current ownership sometimes find difficult to make?
  • In the event a family business is being passed on, do family members expressing an interest in taking over the business have the business acumen and skills to successfully manage the company?

In addition to the myriad of decisions that need to be made, business succession planning also may carry with it obstacles that complicate the process, such as:

  • Transitioning to new ownership without adversely affecting the day-to-day operations of the company.
  • Ensuring the company has the necessary working capital to continue operations, while at the same time assuring that current ownership will have sufficient funds to sustain retirement throughout their life expectancy.
  • Having sufficient liquidity for payment of transfer taxes.
  • Dealing with the concerns of employees that are experiencing insecurity over the unknown effects of a change of ownership.
  • Maintaining the existing client base through the reassurance and communication that they will be receiving the same high quality levels of products and service under the new ownership.

Ownership of a business is not only the numbers on a balance sheet, there is most often an emotional connection between owner and business. Years of hard work growing the company, personal relationships built with employees, clients and suppliers can take an emotional toll as succession is executed. This is why objective, third party advisors can help ensure that the business succession plan is well thought out and free from personal biases.

The Regents Bank team of experienced business bankers has assisted many companies in successfully designing and executing a well thought out succession plan that will benefit all parties. With offices in San Diego, La Jolla, Carlsbad, El Cajon and Vancouver, WA a Regents banker will meet with you to talk about how you can “pass the torch” successfully. We look forward to assisting.

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