BREA, Calif., August 29, 2017 (Newswire.com) – Lendistry announced the addition of SBA loan specialist and banking veteran, Jeffrey Francis, to the team at the company’s Brea headquarters. As a Community Banking Relationship Manager, Mr. Francis will foster existing banking relationships, develop new partnerships, and grow awareness of Lendistry’s expanding line of small business loan products. Mr. Francis cites Lendistry’s forward-thinking, technology-enabled platform and its focus on providing capital to businesses in underserved communities as reasons why he was excited to join the team.
Mr. Francis brings with him several years’ experience in executive roles at Telesis Community Credit Union and Manufacturers Bank, and nearly 5 years’ experience as a Business Advisor at Santa Monica College, SBDC. For over a decade, Mr. Francis has worked to better educate borrowers on the lending process and the fundamentals of small business finance. Mr. Francis recently spoke of the common misconceptions of SBA loans he has encountered in his career.
SBA loans are perhaps one of the most widely-known small business loan products and one of the most misunderstood. Contrary to what many small business owners believe, the Small Business Administration (SBA) does not loan money. The SBA offers loan programs through approved lenders to increase access to capital to small businesses.
SBA programs are loans, not grants, Mr. Francis explains, addressing another common misconception. While SBA loan programs ensure comparatively low rates, they are not free. The SBA’s General Small Business Loan 7(a) program is comprised of a base prime rate and an allowable spread (2.25-2.75%+ depending on loan amount and terms). Rates for SBA loans are roughly between 6-10% depending on loan amount, terms, and current prime rate.
Approved lenders are incentivized to offer lower-rate SBA loans because the SBA guarantees a portion of the loan reducing the lender’s risk. However, Mr. Francis is quick to point out, it isn’t 100% guaranteed and lenders still assume some risk, debunking another common misconception that if the borrower defaults the government will make the lender whole.
In addition to SBA loans, Lendistry also offers traditional term and short-term loans. “Our job is to manage and mitigate the loan risk to get the right loan for our clients,” Mr. Francis said. Echoing a sentiment of Lendistry’s CEO, Everett K. Sands, Mr. Francis added, “There is a loan for everyone.”
Jeffrey Francis can be reached at Jeffrey.Francis@Lendistry.com, 562-352-0236 x110.