Lending program allows businesses to expand while saving thousands
HENDERSON, Nev. – The Small Business Administration (SBA) has chosen Valley Bank of Nevada as the leading lender in Nevada of its 504 program for the fiscal year beginning in October 2018 and commencing September 2019. The SBA 504 program allows business owners to finance long-term assets while saving thousands over conventional loans.
Valley Bank of Nevada, with locations in Henderson and North Las Vegas, lead the state with 17 loans in 12 months.
For companies wanting to expand, the SBA 504 loan is a financially responsible decision and could mean the purchase of a new building or piece of equipment worth at least $250,000 with a maximum of $10 million, said Jarron Gray, vice president and commercial loan officer with Valley Bank.
The program requires the business owner to provide 10% down, while the SBA finances 40% and the bank finances 50%. Traditionally, interest rates in the treasury market, which the SBA uses, are less than 5%. The bank’s interest rates, based on the prime market, hover from 4.5 to 5.5%. These blended rates are much lower than a conventional loan, which is where the savings occurs, Gray added.
“It offers borrowers a fixed-rate product,” he said. “And the rate affects the savings. One percent in savings saves them thousands of dollars a year. It’s hard to beat that in the market today.”
The next closest lender provided 15 SBA 504 program loans in the same 12-month period. The number of business owners Valley Bank helped to expand, however, is much more of a point of pride.
“We’re a much smaller bank so for us to provide 17 loans is a much bigger feat from us,” Gray said. “We are a true community bank. All of our decision-making is done locally.
All members of the team – including John Gentile and Phil Young, vice presidents and commercial loan officers – are available to clients whenever needed.
“Not only do we underwrite the deals, we manage the relationships,” Gray said. “You can call our cell phones and get ahold of one of us without an issue.”
Established in 2005, Valley Bank of Nevada is known for providing consumer banking services designed to restore the traditional values of service and quality that the banking industry was built on. Dedicated to increasing the financial health and stability of communities through supporting small business, Valley Bank of Nevada now has two valley locations, in Henderson and in North Las Vegas. The bank’s philosophies are built upon the time-tested principles of service, integrity and commitment to success.
For more information on Valley Bank of Nevada, call 702-558-7310 or visit valleybanknv.com.