1. 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.

2. 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

3. 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)

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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.

13. 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

14. 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

15. For additional information: Tom Ethen – Stearns Bank N.A.
Toll Free: Direct Number:
Stearns Bank is Member FDIC. Equal Housing Lender