Let us help you make a difference today. — We recently attended the 2018 CBM Annual Convention & Trade Show, Michigan's premier banking event, and enjoyed getting to know community bankers from across the state. At SBA Complete, we understand that it can be tough to balance internal resources, keep up with changing regulations, and maintain a high-performing loan portfolio. It's why we built our business—to help community banks like yours build strong, profitable, and compliant SBA loan portfolios that facilitate small business growth.

1. SWIMMING
with
SHARKS
SBA waters are friendlier
than you think, and awash
with profits—not predators

2. Informal Poll
❏How many banks with assets less than $500 million?
❏Who currently does SBA lending?
❏Who has delegated authority (PLP)?
❏Who has a Chief Information Officer or
Technology Department?

3. “Small banks with less than
$500 million in assets that
wish to remain independent
face challenges.”
– Julie Stackhouse, Exec VP, Federal Reserve Bank of St. Louis

4. Lender Service Provider
If that’s the boat you’re in...
✓ Growth challenges
✓ Profitability challenges
✓ Brand challenges

5. Challenges of the Rural Arkansas Bank
❖ Planning for the Future
❖ Cyber Threats
❖ Bank Consolidation
❖ Ability to Hire
❖ Loss of Population
❖ Financial Technology Demands

6. A STATEMENT OF
STRATEGY
Branding your bank as SMB-friendly is a decision…
and a commitment.

7. Lender Service Provider
Who’s the
brand leader in
your market?
It could be you.

8. Lender Service Provider
What we’re talking about:
CHANGE

9. Lender Service Provider
Changing the way you think...

10. Lender Service Provider
SMBs are constantly looking online
✓ Management
✓ HR
✓ Accounting
and yes,
✓ FINANCING

11. Lender Service Provider
Tech platforms reinventing lending

12. Lender Service Provider
Online SMB lenders

13. Lender Service Provider
Difference is night & day

14. Lender Service Provider
Successful SMB-branded banks are
using SBA as a powerful lending tool

15. Lender Service Provider
We ain’t getting our share

16. Lender Service Provider
It’s not
enough to
hang a
shingle...
You have to
build a brand.

17. Lender Service Provider

18. Lender Service Provider
Changing the way you work...

19. Lender Service Provider
Heck, No Dabblers
All In!
3 types of SBA Lenders

20. Lender Service Provider
SBA Dept. Strategic Decision:

21. Lender Service Provider
1. Economics — Immediate profitability at a variable cost
2. Scalability — Experienced staff at any volume
3. Continuity — Proven processes and continuity at both
the position level and overall department level
Outsourcing Advantages

22. Lender Service Provider
Bottom Line Focus
BOOST PROFITS
CONTROL COSTS

23. SBA SHARKS
Hint: There Are None

24. Harpooning mythical SBA Sharks

25. Lender Service Provider
All SBA loans are alike

26. Lender Service Provider
All SBA loans
are alike
The truth is, there are SBA loans for very
diverse and specific purposes.
▪ That’s great for tailoring to customers,
but it presents a complex landscape to
navigate without expertise.
Bank Solutions simplifies the process
toward becoming a Preferred Lender.

27. Lender Service Provider
All SBA lenders are the same

28. Lender Service Provider
All SBA
lenders are
the same
There are various categories of lender
programs
▪ SBA 7(a)
▪ CDC / SBA 504
▪ SBA CAPLine Lines of Credit
▪ SBA Export Loans
▪ SBA Microloan Program
▪ SBA Disaster Loans

29. Lender Service Provider
SBA sometimes fails to honor
its guarantee

30. Lender Service Provider
SBA
sometimes
fails to honor
its guarantee
SBA has a legal responsibility to honor
the guarantee. Banks without experience
fail to meet necessary conditions:
▪ Failure to comply with SOPs
▪ Failure to make, close, service or liquidate a
loan in a prudent manner
▪ Lender has failed to disclose or
misrepresented a material fact to SBA
▪ Lender has failed to pay the guarantee fee

31. Lender Service Provider
It takes additional bank staff
to administer SBA loans

32. Lender Service Provider
It takes
additional
bank staff to
administer
SBA loans
Not any more than any other loan you
make. It is true submission and servicing
takes specialized diligence.
▪ The Bank Solutions process saves your loan
officer processing time when he/she could
be developing personal banking
relationships.
▪ The Bank Solutions process provides the
diligence necessary for servicing, reporting
and compliance.

33. Lender Service Provider
It takes forever to get SBA
loans approved

34. Lender Service Provider
It takes
forever to get
SBA loans
approved
This misconception relates directly to
inexperience:
▪ Diligence
▪ Underwriting
▪ Submission
Our experience means the process
takes no longer than traditional loans.

35. Lender Service Provider
Now see things more clearly...

36. How SBA helps build your SMB brand
● Guarantee especially helpful with under-secured good loans
● More fee income (secondary market)
● Expanded lending limits, increased liquidity
● Ability to refinance EXISTING loans
● Variable rates generate higher yields
● Lower capital and loan loss requirements
● CRA implications and applications
● Rapid portfolio growth

37. Lender Service Provider
AG = SMB
Here’s the kicker:

38. SBA & PROFITABLE
GROWTH…
With Agricultural Lending

39. Lender Service Provider
Jump in!

40. Lender Service Provider
Most Every Community Has These Businesses
Top Loan Categories Since 2004:
❖ Liquor Stores
❖ Physicians
❖ Child Day Care Services
❖ Veterinary Services
❖ Offices of Dentists
SBA Opportunities in Rural Arkansas
❖ Restaurants (Limited Service)
❖ Gasoline Stations
❖ Hotels and motels
❖ Restaurants (Full-Service)

41. Lender Service Provider
Since 2014:
❖ $446 Million in Arkansas SBA Ag Loans
❖ 80%+ were poultry-related
❖ Average cost of 8-house poultry farm: $3.5 million
Arkansas’s Unique Ag Opportunities

42. Lender Service Provider
2019 - 2024:
Just Think Chicken
❖ Potential $6-700 Million in Arkansas SBA Ag Loans
❖ Potential Refinances/Sales from Distressed Properties
❖ Existing Retrofits and Major Upgrades
Arkansas’s Unique Ag Opportunities

43. Lender Service Provider
Addressing
the Ag
Opportunity
❖ Excess Land
❖ Environmental Issues
❖ Equity Injection
❖ Affiliate / Franchise
The Bad News – an OIG
Report pointed out bad
practices resulting in
more stringent
requirements
The Good News –
there‘s ways to mitigate
the issues

44. Lender Service Provider
SBA Ag
Loans In
Arkansas ❖ Beef Cattle and Farming
❖ Hog and Pig Farming
❖ Soil Preparation, Planting
and Cultivating
❖ Logging
❖ Nursery and Tree
Production
❖ Others
NAICS Classifications
Besides Poultry
FY 2014 thru July 2018

45. Lender Service Provider
SBA Ag
Loans In
Arkansas ❖ Beef Cattle and Farming - $2,344,600
❖ Hog and Pig Farming - $6,116,600
❖ Soil Preparation, Planting / Cultivating
- $575,000
❖ Logging - $6,220,000
❖ Nursery and Tree Production
$350,000
❖ Others
NAICS Classifications
Besides Poultry in
Dollars
FY 2014 thru July 2018

46. Lender Service Provider
BE THE
BANK in your
market that
SMBs turn to
FIRST

47. Lender Service Provider
USE THE
SBA to serve
SMB clients
and boost
PROFITS

48. Lender Service Provider
Further
Discussion

49. Thank You