LINCOLN – Four banks and two business finance firms in Rhode Island were honored as exemplary lenders to small businesses by the U.S. Small Business Administration, the agency announced this week.
The agency named Warwick-based HarborOne Bank as its fiscal 2018 “Rhode Island 7(a) and 504 Combined Lender of the Year.” During the fiscal year, HarborOne approved 54 loans worth more than $10.3 million using the SBA’s 7(a) and 504 loan programs.
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The 7(a) program offers loans up to $5 million that a business can use for working capital, purchasing an existing business, leasehold improvements and more. The SBA guarantees 85 percent of loans of $150,000 or less and 75 percent loans more than $150,000.
The 504 program provides small businesses with long-term, fixed-rate financing to acquire fixed assets for facility expansion or modernization. Under the program, the SBA typically provides 40 percent of a project’s cost through a certified development company; a third-party lender covers up to 50 percent of the cost, and the borrower contributes 10 percent.
“HarborOne Bank has done an excellent job advancing the growth of small businesses in Rhode Island,” SBA District Director Mark Hayward said at an award ceremony at Kirkbrae Country Club in Lincoln.
In addition, the agency named East Greenwich-based Independence Bank as its “Rhode Island 7(a) Lender of the Year.” During the fiscal year, Independence approved 50 loans worth more than $4.1 million under the 7(a) program.
“Independence Bank has done an excellent job of leveraging SBA lending programs to ensure small businesses have the ability to access the capital they need to succeed,” Hayward said.
The agency named also Middletown-based BankNewport as its “Rhode Island 504 Third-Party Lender of the Year.” BankNewport has won the award four of the past five years. In the last fiscal year, the bank approved 18 loans valued at more than $5.7 million under the 504 program.
The loans allow “small businesses to grow and expand their facilities, refinance their debt, and purchase the machinery the need to get to the next level,” Hayward said.
The agency also named Bristol County Savings Bank in Warwick as the “Rhode Island 7(a) Dollar Volume Lender of the Year.” In the fiscal year, the bank approved eight loans worth more than $6.7 million using the 7(a) program.
Bristol County Savings approved “the highest dollar volume amount of any 7(a) lender,” Hayward said. “While quantity of loans is important, ensuring small businesses have the capital they need to succeed is as important.”
The agency named Providence-based Ocean State Business Development Authority as the “Rhode Island Certified Development Company of the Year.” In the year, the company approved 28 loans valued at more than $13 million through the 504 program – the largest amount by any certified development company in Rhode Island. It was the third straight year the firm won the award.
Ocean State Business Development “continues to lead the way for certified development companies in Rhode Island,” Hayward said.
In addition, the agency named Community Investment Corp. in Providence its “Rhode Island Micro Lender of the Year.” The microloan program provides direct loans and grants to eligible nonprofit micro lenders, so they can provide micro-level loans up to $50,000 to new and growing small businesses.
This year, Community Investment Corp. approved 12 such loans worth more than $107,000 – more than all other Rhode Island micro-lenders combined. It was the second consecutive year the firm won the award.
The firm “continually provides lending to those small businesses that otherwise couldn’t get the capital they need to start, grow, and succeed,” Hayward said.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
