Highland Bank progresses with SBA lending

Northwestern Financial Review, Feb 15-Feb 29, 2004

Highland Bank is using the Small Business Administration's popular new SEAExpress program to boost its young SBA lending program. SBAExpress is the fastest growing program for the SBA in the United States and in Minnesota.

"We use SBAExpress extensively," said Pat Bradley, the $350 million bank's president. "We were one of the first banks in the state to embrace this product as a great alternative for businesses that need lines of credit up to $250,000."

Introduced in Minnesota in January 2003, by September 30 SBAExpress accounted for 21 percent of total SBA loan guarantees in the state. Additionally, agency statistics say the SBAExpress program is improving in popularity and now accounts for more than 40 percent of loan guarantees in Minnesota.

The program is catching on so quickly, according to an agency release, because it allows lenders:

* To use most of their own documents;

* To respond to customers in 36 hours;

* To make their own credit decisions;

* To revolve the loan for up to seven years, and

* To earn a higher rate of interest.

St. Michael, Minn.-based Highland Bank launched its SBA program in August 2002 when it hired Kim Storey away from Associated Bank Minnesota to develop the program. Since then, the dollar value of the bank's SBA deals has increased to more than $5 million from $550,000. Thirty-five percent of Highland Bank's SBA deals in 2003 were SBAExpress loans.