SB Informer
Monday, February 26, 2007; 04:25 AM
Midwest Capital Corporation assists community banks with developing an integrated strategy that combines marketing, loan origination and the secondary market sales for government guaranteed business loans. According to company president, Steven Young, "The SBA 7A loan program can help community banks expand their customer base by offering government guaranteed loans to qualified businesses which may often be overlooked by larger banks. We help community banks identify these opportunities in their own backyards. Properly structured loans will allow a bank to expand its market share, minimize risk, and boost profitability."
"Many community bankers recognize the benefits of SBA lending but see
the process of qualifying borrowers, keeping abreast of changes in
regulations and correctly preparing forms and documents for approval to
be a challenge," adds Young. Dedicated SBA loan officers and loan
processors are expensive. "Our program helps banks eliminate the long
lead-time between starting an SBA lending department and generating
sufficient earnings to support it."
Midwest Capital Corporation provides the back-office processing
necessary to efficiently implement an integrated strategy of
origination and subsequent secondary market sale of SBA guaranteed
loans. Outsourcing with Midwest Capital Corporation allows a community
bank minimal investment for personnel, training and infrastructure
while generating immediate profits upon loan closings. The program
helps smaller banks avoid devoting valuable resources to develop a
similar program internally only to loose valuable employees to larger
institutions.
In addition to providing marketing, origination ad packaging
assistance, Midwest Capital Corporation facilitates the sale of these
government guaranteed business loans to the secondary market. The
secondary market for these loans provides smaller banks with current
period income and much needed liquidity.
"Secondary market participation is the most important component of our
program, "says Young. "When effectively implemented, smaller banks may
see this aspect of our service to be the greatest contributor to its
overall profitability."
Midwest Capital Corporation (http://www.midwestcapitalcorp.com/) is a national, non-bank lender specializing
in commercial real estate lending via conventional, SBA and Stated
Income loan programs. Additionally, the company is an outsourced
resource to community banks by providing marketing assistance, SBA loan
packaging and Secondary Market sales for government guaranteed business
loans.