Our Introductory Guide to SBA Loans

Mid adult African American woman (30s) working in restaurant, serving coffee and muffin to customer. Focus on worker.

If you have struggled to get financing in the past or thought about venturing into the small business loan territory for the first time, you may be wondering what SBA loan programs are all about. By way of introduction to SBA loan programs, here’s a brief overview of what they are, who can benefit and how to apply.

What is an SBA loan?

First, let’s oust a myth – SBA doesn’t make direct loans to entrepreneurs to start or grow a business. Instead, it provides a guarantee to banks and lenders for the money they lend to small businesses owners. This guarantee protects the lenders interests by promising to pay a portion of the loan back if the business owner defaults on the loan. So when a business applies for an SBA loan, it is actually applying for a commercial loan through a bank or authorized SBA lender, structured according to SBA requirements with an SBA guarantee.

Essentially, SBA loans alleviate the risk associated with lending money to business owners and entrepreneurs who may not qualify for traditional loans thus opening up lending opportunities to thousands of entrepreneurs, start-ups, growing businesses, minorities, and veterans.

What types of loans are available?

There are several types of loans that businesses can take advantage of, each developed to suit the needs of your business. The 7(a) loan program, for example, can be used for a number of purposes including working capital, revolving funds, equipment purchases, refinance existing debt, real estate purchases, and start-up franchises with a maximum loan size of $5 million with a 75% guarantee.

SBA also offers International Trade Loan Programs which offers term loans to businesses that plan to start or continue exporting or that have been adversely affected by competition from imports.  The loan proceeds must enable the borrower to be in a better position to compete.  The program provides a 90% guarantee on loan amounts up to $5 million.

If you are looking for smaller loan amounts consider the program The Small Loan Advantage. A subset of the 7(a) loan program, Small Loan Advantage is designed for businesses with financing needs up to $350,000.  These loans offer an 85% guarantee for loans up to $150,000 and 75% guarantee for those greater than $150,000.

It’s also worth knowing that fees on all SBA loans are currently extremely favorable to veterans and are currently set at zero for loans under $150,000.

Is your business eligible for a loan?

While each loan has its own specific qualification criteria, talk to your Paragon Bank lender about your needs and business profile. Another resource is your local SBA District Office. https://www.sba.gov/offices/district/tn/nashville or https://www.sba.gov/offices/district/ga/atlanta Take note, in addition to meeting SBA requirements, lenders will also take into consideration credit such as your business cash flow, equity investment, collateral, etc.

How do you apply for an SBA loan?

While each SBA loan program has its own eligibility criteria and application process which you’ll work through with your Paragon Bank lender.  Feel free to contact Paragon Bank’s Small Business Capital Group at (404) 419-1856 or for a complete overview of SBA loan programs visit www.sba.gov

Paragon Appoints Chief Operating Officer of Small Business Capital Group

Paragon Bank’s Small Business Capital Group has announced the appointment of Kerri Morrin as Chief Operating Officer. Morrin reports to Charles Yorke, President.

“Kerri’s leadership and extensive background in SBA operations make her a valuable asset to the team,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “In addition to her experience, Kerri demonstrates endless dedication to her clients, the Paragon team and the community in which she serves.”

As Chief Operating Officer of the Small Business Capital Group, Morrin is responsible for all program planning, organizing, operating and staffing. She also works to ensure activities operate consistently and ethically within the Small Business Administration (SBA) Standard Operating Procedures.

Prior to joining the Paragon team in October 2014, Morrin held various leadership roles at Cornerstone Bank in Atlanta, including SBA Portfolio Manager, SBA Operations Manager, Senior Vice President and finally SBA Chief Operating Officer. Before that, she served as Vice President of SBA Operations at two other banks in the Atlanta Metro area.

Morrin received a Bachelor of Science degree from the University of Michigan, where she majored in criminal justice and minored in finance. She is a graduate of Leadership DeKalb 2010, a board member of DeKalb History Center and volunteers with Habitat for Humanity and the City of Decatur. In her free time, Morrin enjoys traveling, reading, gardening, playing basketball and softball, and going to concerts.

“I knew I found my new home when I realized the mission of Paragon Bank was to provide a positive team atmosphere, where the employees have an opportunity to own a piece of the company,” said Morrin.

About Paragon Small Business Capital Group

Paragon Small Business Capital Group is a team of experienced SBA professionals. With over 150 years of combined experience, the group is prepared to help businesses and individuals navigate the SBA lending world of 7(a), 504, USDA B&I and Conventional loans for small businesses. The Paragon Small Business Capital Group specializes in franchise lending, with loans to 62 unique franchises over the last decade.

To learn how Paragon Small Business Capital Group can provide growth for your small business, visit www.paragoncapitalsolutions.com or email SBCG@bankparagon.com

Paragon Employees Lend a Helping Hand to DeKalb Community

Paragon Bank’s Small Business Capital Group recently participated in a service day through Habitat for Humanity of DeKalb County. Specifically, it was part of the Habitat DeKalb program known as “A Brush of Kindness.” The team spent the day helping clean and fix up the exterior of a local woman’s home.

“Our team was honored to be a part of this special day, and we hope the work and time invested leaves a lasting impact,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “Giving back to the communities in which we work, while building relationships with the people in them, is what Paragon is all about.”

The woman living in the home is unable to move throughout her house without assistance, so she spends most of her time in a recliner, while people come by each morning and evening to drop off food for her. Because of her inability to get around, she asked for help improving the look of the exterior of her home.

The Paragon team stepped in and granted this request, as they spent the day working on large and small repairs. Some of the work included painting the front porch posts, as well as fixing and painting the wheelchair ramp and gate. In addition, the team completed an extensive amount of yard work, helping to transform the appearance of the entire property.

About Paragon Small Business Capital Group

Paragon Small Business Capital Group is a team of experienced SBA professionals. With over 150 years of combined experience, the group is prepared to help businesses and individuals navigate the SBA lending world of 7(a), 504, USDA B&I and Conventional loans for small businesses. The Paragon Small Business Capital Group specializes in franchise lending, with loans to 62 unique franchises over the last decade.

 

 

 

 

 

 

Paragon Announces Staff Changes Within Small Business Capital Group

Paragon Small Business Capital Group, a division of Paragon Bank, has hired Carolyn Taylor as a Small Business Administration (SBA) Loan Closing Associate, and promoted Sylvia Bordeaux and Daniel Vo to Vice President. Taylor will report to Daniel Vo, Vice President, while Bordeaux and Vo will report to Kerri Morrin, Chief Operating Officer.

“Carolyn’s knowledge and extensive experience with small business clients make her a strong asset to our growing Small Business Capital Group,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “Additionally, Sylvia and Daniel have been pivotal to our success, and their new roles will allow our team to further expand the comprehensive service offerings available to small business customers.”

In her new role, Taylor is responsible for packaging, processing, closing and funding SBA loans. Additionally, she initiates third party vendor reports and manages construction draws. These tasks branch out from the overall responsibility of customer service. Prior to joining the Paragon team, Taylor was an SBA Administrator, which included liquidating assets and selling loans on the secondary market.

Taylor received a Bachelor of Arts degree from Emory and Henry College in Emory, Va., where she double majored in Sociology and English. She has volunteered with the Atlanta Community Food Bank and Community Chorus “One Voice,” and during her free time, she enjoys singing, playing the guitar and spending time outdoors.

As Vice Presidents, Bordeaux and Vo are responsible for managing the daily functions of the Small Business Capital Group Loan Operations Department, including SBA loan booking and investor servicing parameter setup and maintenance, insurance and property tax monitoring, completing audits and overseeing quality control prior to loan closing and funding. They also work closely with investors to ensure timely settlements and accurate reporting.

Bordeaux received a bachelor’s degree in psychology from William Paterson University in Wayne, N.J. She invests time outside of work by volunteering at church and with Bridging the Gap Community Outreach. Before working at Paragon, she was an AVP SBA Loan Operations Manager at Cornerstone Bank. Vo graduated from Georgia State University and enjoys playing basketball during his free time. Prior to joining Paragon, Vo was an AVP Closing Manager at Cornerstone Bank.

About Paragon Small Business Capital Group

Paragon Small Business Capital Group is a team of experienced SBA professionals. With over 150 years of combined experience, the group is prepared to help businesses and individuals navigate the SBA lending world of 7(a), 504, USDA B&I and Conventional loans for small businesses. The Paragon Small Business Capital Group specializes in franchise lending, with loans to 62 unique franchises over the last decade.

To learn how Paragon Small Business Capital Group can provide growth for your small business, visit www.paragoncapitalsolutions.com or email SBCG@bankparagon.com.

Paragon Bank Introduces Small Business Capital Group

Paragon Bank today announced it is launching a new division, Paragon Small Business Capital Group, to address the growing need to secure loans for small businesses. The Paragon Small Business Capital Group, which is based in Atlanta, Ga., is headed up by Charles Yorke. He will report to Mike Edwards, President and Chief Operating Officer at Paragon Bank. Paragon’s Executive Vice President, Andy Taylor, will serve as the group’s Senior Credit Officer.

“We are excited to be working with such a seasoned team of SBA professionals,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “Paragon has a sizable small business focus. We look forward to enhancing our efforts and providing the ability to help more small businesses reach their goals.”

The Paragon Small Business Capital Group will initially be made up of 16 team members located in Tennessee, Georgia, Missouri and Colorado. The principals include Yorke, a 34-year veteran of the banking business with over a decade of experience in the SBA field. Additional principals include Doug Cullinan, National Sales Director; Kerry Morrin, SBA Chief Operating Officer; Tye Massey; Eric Larson; and Mickey Smith-Eggleston, who are based in the Atlanta office. In addition, Brian Kuntz is located in St. Louis, Mo., and George Taylor is located in Denver, Colo. With over 150 years’ SBA experience among them, the team will focus on SBA loans consisting of financing for real estate loans, franchise lending, business acquisitions, equipment and inventory loans, and working capital. The group will offer SBA 7(a), 504 and USDA loans for small and emerging businesses.

“This is another of Paragon Bank’s solutions for small businesses,” continued Shaw. “The Paragon Small Business Capital Group, consisting of industry professionals whose combined lending volumes in 2013 would rank among the top 50 SBA lenders in the U.S., put us in an even stronger position to broaden the customers we serve and significantly increase Paragon’s revenue.”