Top SBA lenders in R.I. feted, 366 SBA-backed loans made last year

CRANSTON – The U.S. Small Business Administration on Monday feted the state’s top SBA lenders during an awards ceremony at the Alpine Country Club.
Top lenders included Coastway Community Bank, BankNewport, Bay Colony Development Co., Santander Bank and South Eastern Economic Development Corp., which all contributed toward the 366 SBA-backed loans totaling $88.9 million made in Rhode Island last fiscal year.
“Rhode Island continues to be a leader in helping provide access to capital for small businesses,” Seth Goodall, SBA regional administrator, said in a statement.
Coastway Community Bank made 57 loans totaling $6.6 million through the agency’s flagship 7a loan program, designed to help small business owners with working capital. Coastway was named “7a Lender of the Year” for the second year in a row.
“Our strategy is to form relationships with our clients and really understand what their businesses need,” Stephen Gibbons, executive vice president and head of business lending at Coastway, said in a statement. “It’s a level of service our clients have come to expect from Coastway in all areas.”
There was an overall 19.1 percent reduction in the number of 7(a) loans made in Rhode Island during the fiscal year that ended Sept. 30, compared with the same period last year.
The agency’s 504 Loan program, however, made up for the loss.
Bay Colony Development Co., a certified development company, made 14 loans totaling $14.5 million in debentures through the 504 loan program, which is split three ways between a borrower, a lender and a certified development company.
The loan program is designed to help finance the purchasing of fixed assets, including big-ticket items and real estate. In Rhode Island, 504 project participation from lenders increased 33.1 percent to $32.6 million compared with the period last year.
BankNewport made the most loans as a lender through the 504 program with 12 totaling $18.5 million.
Douglas Hanson, BankNewport vice president, in a statement said the 504 program is “an excellent fit” for BankNewport customers.
Finally, South Eastern Economic Development Cop., or SEED, made the most SBA micro loans, which comprises $50,000 or less to startups and small businesses. SEED made seven loans totaling $265,000.
Santander Bank received an award for the largest year-over-year dollar increase. The bank made 14 loans totaling $6.9 million, representing a 268.3 percent increase compared with the same period last year.
“I am delighted to see the commitment for all SBA programs and for the partnership that will help Rhode Island grow and prosper,” Goodall added.

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