Citizens among top 100 U.S. SBA lenders; Coastway leads in R.I.

CITIZENS BANK was the among the top 100 lenders through the end of fiscal 2015, according to the U.S. Small Business Administration, making 481 7(a) loans worth $62.7 million across the nation. Coastway Community Bank made the most Rhode Island loans during the year, 57, worth a total of $6.6 million.
CITIZENS BANK was the among the top 100 lenders through the end of fiscal 2015, according to the U.S. Small Business Administration, making 481 7(a) loans worth $62.7 million across the nation. Coastway Community Bank made the most Rhode Island loans during the year, 57, worth a total of $6.6 million.

(Updated, 5:18, Oct. 19)
PROVIDENCE – Citizens Bank NA is among the top 100 most active small business lenders in the United States and ranks third in Rhode Island, according to year-end lending numbers released by the U.S. Small Business Administration.
Citizens Bank, a Citizens Financial Group Inc. company based in Providence, made 481 loans totaling $62.7 million through the SBA’s small business 7(a) Loan Program. It is the sole Rhode Island-based bank to make the list of the top 100 most active U.S. lenders, ranking No. 60 based on lending volume through fiscal 2015, which ended Sept. 30.
Of those 481 7(a) loans, 26 were made in Rhode Island totaling $4.8 million, according to the SBA Rhode Island district office, which ranks lenders based on number of 7(a) loans. Citizens ranked No. 4 behind Coastway Community Bank, Bank Rhode Island and Independence Bank, Nos. 1, 2 and 3, respectively.
Wells Fargo Bank NA topped the U.S. list with 7,254 7(a) loans totaling $1.9 billion. Other Federal Deposit Insurance Corp.-backed banks operating in the Rhode Island market to make the U.S. list includes:

  • TD Bank NA ranked No. 18, making 1,024 loans totaling $201.5 million
  • Bank of America NA ranked No. 61, making 269 loans totaling $62.1 million
  • Santander Bank NA ranked No. 64, making 329 loans totaling $60.4 million

The 7(a) small business loan is the SBA’s most popular lending program. The federal agency uses taxpayer funds to guarantee loans, which reduces the overall risk on lenders to grant loans to small businesses and entrepreneurs. According to the agency, the SBA can guarantee as much as 85 percent on loans of up to $150,000 and 75 percent on loans of more than $150,000. The SBA’s maximum exposure amount is $3,750,000. Thus, if a business receives an SBA-guaranteed loan for $5 million, the maximum guarantee to the lender will be $3,750,000 or 75%. SBA Express loans have a maximum guarantee set at 50 percent.
There were 317 7(a) loans granted in Rhode Island in fiscal 2015, which totaled $64.8 million. The most loans granted by location were in Warwick and Providence, which both received 44 loans, followed by Cranston (39), Pawtucket (23) and East Providence (15).

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