Pub. 7 2017-2018 Issue 2

18 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S SBA Helps High-Growth Customers Access Needed Capital FEATURE ARTICLE BRYSON PATTERSON, SBA EXPORT FINANCE SPECIALIST I know what you may be thinking, “Wait a second, our bank’s credit policy excludes WIP.” That is why you need to use a credit enhancement. Government credit enhancements enable banks to make loans that they otherwise wouldn’t be able to make. It is a problem faced by many high- growth small businesses. Sales are growing at a double digit rate, and the company is looking to expand revenues by bringing on new accounts. Their immediate need is an infusion of capital to fill larger orders. The problem is that while margins are healthy and projections are very positive; assets are fewand/or already leveraged. As a lender, what can you do? Introduce themto amoreaggressive lenderora factoringcompany? Maybe a high-interest-rate, non-bank lender is the way to go? What is the most effective route to help this client? Has yourborrower considered theSBA’s loan guaranty program to move their deal forward? Many lenders only consider SBA’s programs when financing start-ups or brick and mortar businesses. Lenders don’t always consider an SBA guarantee when assisting high-growth, next-phase companies. This is understandable. Until 2010, SBA’s maximum loan amount was $1 million, and SBA guarantees were almost all term facilities. Today, the maximum loan amount is $5 million. The revised SBA CapLine Program, as well as the ExportWorking Capital