Pub. 4 2016 Issue 2

9 Summer 2016 The Community Banker C ommunity banks across Montana are continu- ally seeking two critical inputs to grow their institutions, and serve existing and new cus- tomers. Those inputs are good commercial loan growth and generation of non-interest fee income. In our very competitive environment, these two items can assure a community bank’s viability and survival. One of the best solutions to both of these challenges is effective use of government guaran- teed (SBA and USDA) lending programs. These programs serve to not only provide access to capital for credit worth small business borrowers, but can also generate huge profits for your bank. The question becomes how can a community bank, with limited resources and unknown volume levels, be involved in SBA and USDA loan programs in a cost effective way. The answer is simple, engage the services of a qualified Lender Service Provider. Holtmeyer & Monson – an MIB Associate Member – has been successfully serving community lenders since 1982. Based in Memphis, TN, H&M operates nationwide, and has enjoyed the endorsement of the Independent Commu- nity Bankers of America as a Preferred Service Provider since 2006. Holtmeyer & Monson cur- rently serves over 400 clients. Our business model is very straightforward. We contract with a community lender, and become their fully staffed, high level, out sourced SBA/USDA loan department. Government guaranteed lending is a special- ty, and banks can run into trou- ble if the agencies protocol and regulations are not followed specifically. Holtmeyer & Monson brings community lending institutions the required technical expertise to successfully engage in gov- ernment guaranteed lending in a cost effective manner. This dynamic serves as a cost control measure, while driving poten- tial profits to your bottom line. Banks should clearly un- derstand that a government guarantee is a wonderful credit enhancement, and allows lend- ers to extend loans to credit worthy borrowers on terms and conditions not otherwise avail- able. Banks must be aware that SBA/USDA lending is a special- ized credit granting activity, and involves a process somewhat different from conventional C&I lending. A government guaran- tee is NEVER an excuse to make a poor credit decision. Protect- ing the integrity of a govern- ment guarantee is a must to operate an effective SBA/USDA function. Holtmeyer & Monson provides lenders with a comfort level that their guarantees are intact and viable. HOLTMEYER &MONSON Being the largest and most long-standing Lender Service Provider in the country, Holtmey- er & Monson offers a compre- hensive service menu including 1) loan eligibility analysis and underwriting, 2) application preparation, 3) loan closing ser- vices, 4) securitization and sale of loan guarantees in the secondary market, 5) portfolio management services, and 6) compliance and regulatory review services. In conclusion, SBA and USDA lending provides community banks with the opportunity to generate excellent commer- cial loan growth as well as the highest yielding activity avail- able, coupled with a reasonable level of risk. Done right, it can be a “life changer” for commu- nity banks. As an MIB Associate Member, Holtmeyer & Monson stands ready to engage with your institution, and help you navigate the SBA and USDA lend- ing process successfully. G. Arne Monson, President, Holtmeyer & Monson ICBA_8387_MortgageSolutionsMECH.indd 2 11/16/15 2:09PM Featured Associate Member