Business Bank of Nevada Provides Korean Businessman with a $750,000 SBA Loan to Open an Auto Repair Business
14 December 2000
Business Bank of Nevada Provides Korean Businessman with a $750,000 SBA Loan to Open an Auto Repair Business
LAS VEGAS--Dec. 14, 2000--When Suk (Sam) Kim, a Korean businessman, wanted to open an auto repair business in Las Vegas, he needed a sizeable amount of capital.After talking with one of Business Bank of Nevada's board of directors, Kim applied for a $750,000 Small Business Administration (SBA) Loan and was approved a short time later for a 7a SBA Construction Loan to build his auto repair shop. This loan was converted to permanent financing upon the completion of construction.
Once Kim obtained his funding from Business Bank, he began building his lifelong dream of owning an auto repair business in this country. This dream came true when he recently opened Auto Mystic located at 2250 South Maryland Parkway. This new facility provides auto repair service for most automobile makes and models of both foreign and American made cars. Kim and his wife Keum also own a dry cleaning business located directly in front of Kim's auto repair shop.
"Contrary to what some people think about getting a loan from a bank, my experience with Business Bank was a pleasant one and a fairly easy process," Kim said. "The larger banks typically put you through a fairly lengthy process, which includes out-of-state underwriting and processing of your loan request. However, at Business Bank your loan request is processed locally and handled by a loan officer who is with you every step of the way, even after the loan has been funded."
Kim added that his Business Bank loan officer, Jerry Kennedy, was exceptional to work with and is certainly a great asset to the bank. "He works well with people and is very seasoned both as a lender and one who understands the Las Vegas business climate."
Business Bank was among the top ten SBA lenders for the fiscal year 2000, funding 34 SBA loans totaling nearly $6 million. Over $2.6 million of the bank's total SBA loans for the year were loaned to women and minority-owned businesses in Nevada. Business Bank is also a Preferred SBA Lender, which means it can underwrite, book and fund SBA-guaranteed loans without having to send them to the Small Business Administration for processing.
"Helping people and businesses succeed is what banking is all about," said Mark Phillips, executive vice president and chief credit officer of Business Bank of Nevada. "When we help people like Mr. Kim fulfill a lifelong dream, we also help the local economy by adding jobs, increasing consumer spending and tax revenue. Mr. Kim is clearly the kind of borrower we want as a customer of our bank and the type of individual we believe will refer business to us because of his experience with Business Bank."
Phillips added that many borrowers decide to apply for SBA financing instead of conventional financing because of the more favorable terms and conditions 7a and 504 SBA loans offer. Some of those advantages include longer repayment terms of up to 25 years, lower down payments and full amortization of the loan. The federal government also guarantees SBA loans.
Business Bank is enjoying some strong growth in its loan portfolio as well as its total outstanding loans. The bank expects to finish out the year at more than $110 million in its total outstanding loans, which would represent a 25 percent increase over the previous year. In July of this year the bank reached a milestone in its brief five-year history by topping $100 million in its total outstanding loans. The bank is currently booking more than $3 million a month in new loans, with an average loan amount of $250,000.
In addition to SBA loans, the Bank's Commercial Loan Product Portfolio includes Construction Loans, Land and Real Estate Development Loans, Business Equipment and Machinery Financing, Tenant Improvement Loans, and much more.
Business Bank of Nevada, with over $175 million in total assets, is in its sixth year of operations and is one of the fastest-growing independent banks in the state. The bank has four branch offices in Nevada, with three in the Las Vegas area and one in Carson City. The bank has plans to open additional offices statewide in the near future. Business Bank is FDIC Insured and is a member of the Federal Reserve Bank of San Francisco, and is listed over the counter (OTC) at ticker symbol BBNV.