New SBA Credit Program Spurs Small Business Growth at First American Bank

CHICAGO, Aug. 01, 2024 (GLOBE NEWSWIRE) —  The U.S. Small Business Administration (SBA) has announced a Working Capital Pilot (WCP) program designed to spur small business job creation and growth through a new structured line of credit. The program is designed to make credit available to businesses with typically ineligible foreign or construction borrowing base receivables. With this addition to the SBA loan program portfolio, First American Bank can equip our small business clients with more favorable terms, competitive interest rates, and greater flexibility to fund both domestic and export related projects.

“As a long-time SBA lender and recognized financial institution for excellence in domestic and export working capital financing, First American Bank is excited by the news of the new SBA WCP,” said James D. Matteson, First Vice President and SBA Program Manager at First American Bank. “It will vastly simplify the underwriting process,” he added.

For small businesses lacking eligible collateral, a strong credit history, or longer than normal receivable/inventory turnover cycles, SBA loans are powerful in that they allow lenders like First American Bank to provide the capital businesses need to buy new equipment, expand their facilities, upgrade technology, and make other strategic investments. The WCP program gives First American Bank even more flexibility in delivering these crucial funds.

The new line of credit allows for innovative fee structures, including asset-based and transaction-based working capital facilities, which the Bank is uniquely suited to handle. For example, First American Bank’s operations team has the ability to meticulously review and approve each sale involved in a transaction-based line of credit before advancing funds.

“Providing lenders like us with the flexibility to be more creative when structuring a new credit facility is paramount as this will only make the process easier for everyone involved, especially the small business owner,” explained Matteson. “In addition, the modification of the SBA Guaranty fee structure for the WCP is a welcome change, as too often these fees have been a burden and a barrier to entry for the borrower and not commensurate with the spirit of the SBA working capital programs. First American Bank looks forward to offering the WCP to its customer base on day one.”

As a Preferred Lender Program (PLP) institution, First American Bank is expertly equipped to administer the new SBA WCP in both the domestic and international spheres with an eye to meeting businesses’ specific needs. First American Bank is one of only 17 delegated lenders in the country under the WCP at launch to be granted PLP status to process and approve WCP loans in-house. As a testament to our dedication and expertise in the working capital space, First American Bank has been previously awarded:

• National SBA Export Lender of the Year in 2024 and 2017
• SBA CAPLine Lender of the Year in Illinois in 2024, 2023 and 2022
• President’s E-Award for Export Service Excellence in 2018

Discover the full breadth of our small business financing services, and explore the new WCP program.

About First American Bank

First American Bank is a privately held multi-state full-service community bank. Having started over 50 years ago as a combination of community banks serving the metro Chicago area, we’ve since grown to become the largest privately held bank in Illinois with 61 locations across Wisconsin, Illinois, and Florida—including Miami—and over $7 billion in assets. Our focus consistently centers on three core values: creating solutions, delivering exceptional customer service, and providing unmatched expertise in commercial banking, wealth advisory, and personal finance solutions.

CONTACT OUR BUSINESS EXPERTS:

James D. Matteson                                                                                              
First Vice President – SBA Program Manager
(847) 586-2629                              
[email protected]                                                                 

First American Bank is a Member FDIC.

The information is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel. Subject to credit approval. Standard rates apply.

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