Bank of Commerce has captured the crown as top bank lender under the Small Business Administration's flagship 7(a) lending program.
The San Diego bank approved 350 loans, totaling $141 million, during the fiscal year ended Sept. 30. That was an increase of 127% from the preceding year.
"It's a very profitable program," said David Bartram, senior executive vice president at the bank.
Nevertheless, Bank of Commerce was only No. 4 overall, trailing the nonbank SBA lender giants. The Money Store Investment Corp. was No. 1 during fiscal 1996, issuing 959 loans totaling $713 million.
AT&T Small Business Lending Corp. approved 942 loans totaling $262 million to place No. 2, trailed by Heller First Capital Corp., which approved 575 loans totaling $233 million.
Banco Popular De Puerto Rico, which was the top SBA bank lender in the 1995 fiscal year, approved 790 SBA 7(a) loans. But they added up to just $109.8 million, leaving it in fifth place.
Nearly one-third, or $45 million, of Bank of Commerce's loans were made outside its home state. The $360 million-asset bank has 10 offices spread across California, Nevada, Arizona, and Oregon.
"California is the most competitive SBA market there is," Mr. Bartram said. "That's part of the reason we expanded outside the state."
The bank has 35 salespeople who call on prospects to explain the SBA loan process and help cut though the red tape.
Bank of Commerce, an SBA preferred lender, offers customers a loan commitment within four days and turnaround time of three to five weeks. It also has a centralized loan processing center.
