Sales and Marketing: How to Market SBA Loan Programs

April 2, 2019 @ 3 p.m. Eastern

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Sales and Marketing: How to market SBA 7(a) & 504 loans

Increase Your Loan Volume

Ken Rosenthal, CDC Small Business Finance

Chuck Evans, Capital Growth Solutions

Ken Rosenthal

CDC Small Business Finance Sr. Loan Officer, since 1991 – over 1,000 504 loans exceeding $2 billion

CDC Capital Markets - CDC Small Business Finance subsidiary, nation’s largest SBA 504 CDC

Morgan Stanley contract with CDC Capital Markets since 2010

Education and Training nationwide to promote 504 lending and 504 1st mortgage secondary market lending

Former NADCO Director and current NADCO Trainer of Sales and Marketing

Chuck Evans

President, Capital Growth Solutions

Commercial Lender since 1978 in North Carolina and Pennsylvania.

Managed Pennsylvania’s largest Certified Development Company for ten years.

Founded one of the nation’s more prominent SBA Lender Service Provider organizations with a focus on mission- based lending.

Current President and CEO of Capital Growth Solutions, one of the nation’s largest SBA 7(a) lender service providers.

Active supporter of NAGGL, NADCO and industry training.

We would like to thank Chuck and Ken for their time and providing information regarding their experience on SBA lending programs from their

perspective. All opinions, conclusions, and/or

recommendations expressed herein are those of the presenters and do not necessarily reflect the

views of the SBA.

Co-sponsorship Authorization: #19-0390-29. SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or

services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis.

Objectives

To help lenders increase their SBA 7(a) 504 volume.

Principals of Marketing Sales

Business Development as it specifically relates to the SBA business model

How to effectively market the SBA programs to different audiences

Target the most appropriate referral sources for the individual lenders

Discuss strategies for competing loan programs

Defining the Market

Small Business Owners

504 First Mortgage Lenders

7(a) lenders: Banks and Non bank lenders

Existing CDC and Bank Portfolio

Referral Sources

Referral Sources Lenders – Banks and Non Bank lenders

Commercial real estate brokers/agents

Accountants

Business and real estate attorneys

Mortgage brokers

Business Brokers

CDC board members/Bank Board members

Banks vs. Non bank lenders

Relationships vs Transactional lending

National Banks

Regional Banks

Community Banks

Non bank lenders

Insurance companies

Existing Portfolio

Familiarity with 504/7(a) program

Expand business

Same advantages as the first time

Education

Be the expert

Quick cash flow, Eligibility, deal structuring

Turnaround time

Prequalification

5 ways to buy real estate

Timing / Execution / Staffing

Understanding Sr. Management/Board goals and expectations

Marketing via process efficiencies

Listening to customer needs/establishing long term relationships

Setting expectations (under promise, over deliver)

7(a) Marketing Tools Process and Efficiency are the Best Marketing Tools

Develop your 7(a) Strategic Plan

Determine your 7(a) Business Model & yes there are several

Effectively Manage Risk – Safety and Soundness

Develop Process Efficiency – A quick no or conditional yes is your best marketing

Key Considerations to Success

Direct Marketing

One on one - face to face

One on one – email

One on one – phone

Cold calls vs. warm calls

Name and phone number approach

Relationship Marketing

Transactional vs. relationship: what is the difference?

Core relationships: How many?

Secondary relationships

Other relationships

Entertain Referral Sources

Lunches

Coffee

Entertainment

Sporting events

Music

Golf, Waterskiing, Sailing, Surfing

Group Marketing

Dog and pony shows

Lender training

Real Estate broker training

Receptions

Presentations to groups

Seminars

Indirect Marketing

Direct mail

Postcards

Newsletters

Fact sheets

Email blasts

Advertising

Radio or TV ads

Radio or TV talk shows

Print ads – newspapers, journals

Publicity

Press releases - loan approvals

Press releases – featured customers

Press releases – awards

Write articles or column

Advertising & Public Relations

Community activities

CDC/Bank signage

Advertising specialty items

Greeting cards

Contests – loan officers, banks, brokers

Joint efforts with banks

Awards

Bank awards – lenders of the year

Large bank lender

Community bank & non bank lender

Emerging lender

Real estate broker of the year

Referral source awards

Territorialize awards

Social Media

LinkedIn – Premium i. Search ii. Post

Facebook

i. Goals and Expectations

ii. How does that translate to marketing efforts?

iii. Is your process efficient?

iv. Temper expectations and clearly explain potential pitfalls (credit/eligibility) upfront.

v. How do you add additional value?

Any questions?

Mahalo Nui Loa!

Lender Relations Specialist Contact Info

Mike Rossi – 302-573-6294 – michael.rossi@sba.gov

Dana Winston – 502-582-5971 x227 – dana.winston@sba.gov

Lisa Denson – 615-736-2991 x247 – lisa.denson@sba.gov

Maria Lloyd – 615-736-7427 – anna.lloyd@sba.gov

Leo Lopez – 304-347-5220 – leo.lopez@sba.gov

Rick Haney – 304-623-7449 – richard.haney@sba.gov

Or contact your local LRS – www.sba.gov