First Union Corp. last week kicked off a six-month sales campaign targeting 40,000 companies in its Virginia, Maryland, and District of Columbia markets.
The blitz, the first of its size and duration for the Charlotte, N.C., banking company, is intended to boost sales of First Union's small-business services and products.
And regional vice chairman Bob Helms said all the door-knocking by sales reps is only a prelude to a more aggressive small-business sales strategy in the three markets.
"This is merely the kick-off," said Mr. Helms, who is based in Roanoke, Va. "In 1997, this will be a routine part of our salespeople's activity."
This year the bank hopes to lend $225 million to companies in the area with annual revenues between $250,000 and $3 million, Mr. Helms said. Last year the banking company lent $144 million in the niche. The entire banking company lent $660 million to small businesses.
First Union has been focusing on the niche since 1994, when it created a small-business division and centralized its underwriting. It has been introducing new products and is now reviewing its small-business investment unit.
The bank plans to be more aggressive in sales because small businesses represent a large and untapped market, Mr. Helms said.
"It is a market that is underserved and I believe it represents a big part of the future of the country," Mr. Helms said.
The banking company already has selected the types of companies it wants to hit during the campaign. They are: 2,200 manufacturers; 5,700 wholesalers; 4,700 financial, insurance, and accounting companies; 9,500 accountants, attorneys, and other professionals; 9,500 miscellaneous businesses; and 8,000 existing small-business customers.
