Stop Leaving Money on the Table Originating and Closing Larger Deals Presented by: Andrew Halladay – Oakmont Capital Services, LLC Tom Ethen – Stearns Bank N.A.

Oakmont Capital Services, LLC Commercial Financing & Leasing For Over 18 Years Capacity to provide financing services to all types of businesses; start-ups to established business owners We maintain relationships with bank and non-bank lenders thus able to offer competitive interest rates and terms Fast decisions process; up to $300K in 24 hours or less Our goal is to work with clients to find the best financing options suitable for growing their business NEFA Member

Stearns Bank N.A. 100+ year old financial provider with locations in Minnesota, Arizona, Florida & Georgia. Independent, employee-owned commercial bank with $2 billion in assets #1 ranked bank in the nation based on ROA (ICBA Independent Banker – based on banks with over $1 billion in assets) Nationwide Preferred SBA Lender – one of the most active SBA 7(a) lenders in the nation (SBA.gov) Nationwide Equipment Finance Division - 17th most active player in the Vendor Channel related to new business volume (Monitor)

Purpose of the SBA Programs To provide reasonable loan terms in situations where financing is not otherwise available

Eligible Types of Business: “For Profit” Businesses Provides Products & Services to the General Public Manufacturing, Service, Hospitality, Retail, Wholesale, Distribution Investment Only or Passive Businesses Not Eligible 2 Year Average Net Income of Less Than $5 Million and Tangible Net Worth of Less Than $15 Million

Benefits of the SBA Program to the Small Business: Longer Amortizations No Balloon Payments Low or No Prepayment Penalties Lower Equity Injections Loans up to $5 Million Flexible Structures Financing multiple types of assets with one loan

Benefits to Loan Originators for using the SBA Program: Place a transaction that otherwise cannot be done Produce fee income Customer retention program Insure opportunity to retain future lease business Build Goodwill – “doing right by your borrower” SBA credit approvals are less volatile Diversifies your funding sources

Examples of Transactions that fit the SBA Programs: Real Estate – Construction or Acquisition Working Capital Requests Under Secured Transactions Whole Business Acquisition Inventory Transactions Partner Buyouts Extended Amortizations Debt Refinance Larger transactions Start ups

Common Objections From Originators: Longer Processing Times Work only with a SBA Preferred Lender Look for Lenders with expedited processes Prepare your client Lower Fee Income than other loan programs SBA transactions are typically larger loans …continued

Common Objections From Originators: SBA Loans usually include taking a blanket lien on all businesses assets Future transactions can be completed using Purchase Money Security Interest Higher Transaction Costs Interest rates are generally lower No prepayment penalties Fees are financed over an extended amortization resulting in a lower payment

Stearns Bank’s FASTTrack Program: Loans $350,000 or less “Application Only” transaction Personal Financial Statement Borrower and Individual Certifications 1 Year Projection or Historical Financial Statement 24 Hour Credit Approvals Flexible Life Insurance and Collateral Requirements Expedited Closing Process - Docusign

Example: Transportation/Trucking Company Business formed in 1991 Existing customer of Loan Originator since 2011 Loan originator provided 6 contracts for equipment purchases Frequent follow up with customer netted the following project: company outgrew their existing facility and decided to build a new/larger facility.

Example: What Stearns Bank did for them: Purchase Real Estate....... $400,000 Construct a Building........ $990,000 Working Capital............. $35,000 Other......................... $105,000 (includes closing costs, contingency and interest reserve) PROJECT TOTAL: $1,530,000

Example: Source of Funding Borrower’s Cash................ $33,000 “Cash out” loan provided by Equipment Lender.......... $120,000 SBA 7(a) loan provided by Stearns Bank............... $1,377,000 PROJECT TOTAL: $1,530,000 Fee Income generated for the referral source: $13,770

For additional information: Tom Ethen – Stearns Bank N.A. Toll Free: 1-888-320-2899 Direct Number: 320-258-4802 Email: tome@stearnsbank.com Stearns Bank is Member FDIC. Equal Housing Lender