Tag Archives: Relationship Banking

Thinking about applying for a small business loan? Consider opportunities through SBA Lending

By North SA Chamber Editor
Posted on by Email to a Friend

AmegyBank_RGB_rWhether they are starting a new business, expanding an existing one or simply need additional working capital, many business owners are utilizing credit to grow their businesses. There are many ways to structure financing, but one option that has grown in popularity in recent years is SBA lending.

The Small Business Administration (SBA) is a government agency that supports small businesses through a variety channels, such as education, disaster relief assistance and its most widely known resource: SBA loan programs. The SBA does not provide loans directly, but guarantees default against a specific portion of the loans made by banks and other lenders that follow the SBA guidelines. These loans are intended to assist businesses that may not be able to acquire financing under traditional terms.

The two most popular types of SBA loans are the 504 and 7a programs; both of which can be used by small businesses of all kinds.  Money acquired through 504 loans must be used to improve the community and economy. These loans may be used to purchase real estate, finance construction, or purchase equipment with the goal of helping the business to create jobs. Because these loans are applied to the treasury market, interest rates are typically fixed. Loan amounts are usually capped at $5 million.

Financing secured through 7a loans can be used for the same purposes as 504 loans; however, 7a loans may also be used for working capital, to open lines of credit and, in some cases, refinancing. These loans are tied to the prime rate, so interest rates tend to be variable. Loan amounts are typically capped at $1 million.  There are advantages to both loan programs, and selecting the right one for your business will depend on many factors, including how much collateral the owner has, how much money is needed and the purpose of the financing, to name a few.

Business owners are using SBA loans for a variety of purposes, including starting a new business, acquiring another business, refinancing, construction, as well as the purchasing of real estate, equipment and supplies.

The SBA does have some requirements that must be met in order to qualify for one of the loan programs, such as limits to the number of employees a business has and the total annual revenue the business makes. The business must also be independently owned and operated. Loan terms like the amount of the loan and the interest rate will vary. Specific requirements will also depend on the industry of the business, type of loan and the project the loan will finance.

Remember, applying for a loan can be a complex process, and there are many financing options available today for businesses. Business owners should talk to their banker to find out if they meet SBA eligibility requirements and determine if SBA loans are the right fit for their business.

Amegy Bank is a leading Texas bank with more than $12 billion in assets. Founded in 1990, Amegy has a strong tradition of relationship banking, local decision making and financial expertise. Amegy specializes in banking businesses of all sizes, and has the resources to provide financing, investment management, treasury management solutions, international banking, as well as other specialized services. Equally important, the Bank offers individuals and families a wide range of depository, lending, mortgage, wealth management, trust and brokerage services. With more than 80 locations across Houston, Dallas and San Antonio, Amegy is dedicated to serving Texas communities, families and businesses. To learn more about Amegy, visit www.amegybank.com.

Amegy Bank finds booming opportunity with the Eagle Ford Shale

By North SA Chamber Editor
Posted on by Email to a Friend

AmegyBank_RGB_rFor South Texas, and now the rest of the country, the Eagle Ford Shale has become a highly-recognized play in the oil and gas industry, as well as in the economy as a whole. In 2012, activity in the Eagle Ford Shale generated more than $61 billion in economic impact and supported more than 100,000 jobs. And, it doesn’t seem Eagle Ford is going anywhere anytime soon.

While the Eagle Ford Shale impacts its neighbors in different ways, there is no doubt that those around its 30-county spread are feeling the effects of the largest single oil and gas development based on capital expenditures in the world. For Amegy Bank, the growing activity in South Texas has opened doors to shale-related business and relationship opportunities with some of Eagle Ford’s biggest players.

Although Amegy Bank is feeling the value of a recent uptick in energy activity in and around Eagle Ford, working with the energy sector is a practice with which the bank is very familiar. Through its experienced energy team, Amegy Bank has grown its energy business to over $3.8 billion in commitments with more than 275 companies across the industry.

Now, Amegy Bank is seeing an opportunity to leverage both its expertise in the energy sector and its commitment to relationship banking to support smaller, local lenders that are challenged to meet the demands of their now financially hyperactive communities. This could include offering investment products and services to individuals whose assets have been positively impacted by the oil boom, or providing financing for larger commercial deals.

“As a bank that began with just one location more than 20 years ago, we understand the importance of relationship banking,” said President and CEO of Amegy Bank San Antonio David McGee. “The potential of the Eagle Ford Shale allows Amegy Bank to explore building partnerships with existing banks so they can continue providing hometown service to their customers while we all cultivate the economic impact of Eagle Ford in our local economies.”

About Amegy Bank
Amegy Bank is a leading Texas bank with $13 billion in assets. Founded in 1990, Amegy has a strong tradition of relationship banking, local decision making and financial expertise. Amegy specializes in banking businesses of all sizes, and has the resources to provide financing, investment management, treasury management solutions, international banking, as well as other specialized services. Equally important, the Bank offers individuals and families a wide range of depository, lending, mortgage, wealth management, trust and brokerage services. With more than 80 locations across Houston, Dallas and San Antonio, Amegy is dedicated to serving Texas communities, families and businesses. To learn more about Amegy, visit www.amegybank.com.