Michelle Brasseur, an OSB Community Bank Senior Commercial Lender, tells how the flexibility of SBA loans can provide financing relief to small businesses.
“There are so many fantastic advantages for businesses who access SBA financing solutions through a local community bank. Early in my lending career SBA was the primary loan product that I worked with, but for the past 18 years I would say that SBA, and specifically SBA 7A, is one of the loan products that I would consider when structuring loans for clients.
This year I discovered an amazing servicing opportunity that was truly a lifesaver for one of our clients at OSB Community Bank. As a family owned business in an industry that has been experiencing declining sales and margins, this client was facing financial challenges. The stress of these conditions was showing on the client’s income statement and balance sheet. When our client requested additional financing, we had to explain that what they really needed to do was reduce expenses to align with the reduction in their current and projected sales. We encouraged them to work with their accountant to see what expenses they could reduce.
Soon after, the client came back to me with solutions to significantly reduce their expenses, showing their commitment to making the changes necessary for their survival. As a result, the bank felt comfortable looking at what financing options we could offer to them. After doing some research, I discovered that you can extend the maturity of any SBA loan up to 10 years. Doing this allowed us to provide payment relief to our client, whose business continues to do well today.”