Monthly Archives: May 2015
The Biltmore Bank of Arizona would like to thank the Arizona Bar Foundation for inducting us into their “Lyons Den.” The Lyons Den includes the small handful of honorees recognized through the George Lyons Partnering Bank Award program, established in 2014 in honor of George Lyons, a champion of the Arizona Interest on Lawyer Trust Accounts (IOLTA) program. This marks the second time the Arizona Bar Foundation has honored our bank through this program.
As explained on the IOLTA website, interest on IOLTAs is a unique and innovative way to increase access to justice for individuals and families living in poverty and to improve our justice system. Without taxing the public, and at no cost to lawyers or their clients, interest from lawyer trust accounts is pooled to provide civil legal aid to the poor and support improvements to the justice system.
Arizona bank applicants for the George Lyons Partnering Bank Award were assessed on their performance in one or more of the following areas:
- Supported a school or community group to further their efforts in civic education through monetary or volunteer involvement.
- Supported a legal aid agency or law school clinic to further their efforts in providing legal assistance to those without the economic means to afford a private attorney.
- Supported one of the Foundation events or programs during the year through monetary or volunteer involvement.
- Supported another “access to justice” initiative that furthers the knowledge rights and responsibilities of Arizonans within the justice system.
Qualifying in all of the areas above, The Biltmore Bank of Arizona received an honorable mention this year. Our contributions have included staff participation on the board of the Scottsdale Charros, the Arizona Petroleum Marketers Association Scholarship Foundation and Phoenix Suns Charities 88, providing legal assistance to those without the economic means to afford a private attorney through our business partnership with the ASU Alumni Law Group and remitting 100 percent of the interest earned on an IOLTA to the Arizona State Bar.
Additionally, The Biltmore Bank of Arizona supports other ‘access to justice’ initiatives that further the knowledge rights and responsibilities of Arizonans within the justice system through our business relationships with our law firm customers. Everyone deserves access to justice, and we’re proud to support many wonderful businesses and organizations that help make that possible.
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By Leticia Scearce, Vice President of Government Guaranteed Lending at The Biltmore Bank of Arizona
Business owners plan for expansion, purchases, re-structure and consolidation. Accordingly, they seek out financial institutions to facilitate their plans. Some owners are well prepared, having crafted a business plan, financial statements and tax returns, but few understand the structural components of the information the bank needs from a loan applicant. Those components are as follows:
- Cash flow (repayment capacity)
- Collateral available
- The reason for needing the loan
- Equity available
- Term (repayment schedule and other requirements and specifics of the loan)
Your banker needs this data to qualify you as a borrower and determine what loan program(s) will best fit each loan request. Fortunately, business owners have access to many advantageous government-guaranteed loan programs.
In addition to conventional financing, Biltmore Bank offers many of these various government guaranteed and participation loan programs. The most recognized guaranteed program is the Small Business Administration (SBA), but the largest and oldest is the Export-Import Bank of the U.S (EX-Im Bank). Other programs include the USDA Rural Development loans, Arizona Commerce Authority and other local and city programs. Through this series of government-guaranteed loan programs blog posts, we’ll examine each of these in more detail.
One of the advantages of government-guaranteed loans is that they allow businesses to secure a longer loan maturity time horizon – up to 25 years for commercial real estate while a conventional bank loan typically offers a maximum maturity of 10 years. Additionally, upfront equity for a government loan can be as low as 10 percent for owner-occupied commercial real estate, versus the 30 percent in conventional loans.
Our next blog post in this series will examine the flagship SBA 7a loan program. In the meantime, please contact Biltmore Bank to see how we can help with your business financing needs and to learn which loan program might be right for you.