In Brief: Pa.'s First Western Centralizes SBA Lending

First Western Bancorp has centralized its small- business lending department in its New Castle headquarters.

The small-business center will use credit scoring to approve loans for less than $250,000 that were generated through the bank's 41 branches in western Pennsylvania and eastern Ohio.

First Western is one of an increasing number of banks using credit scoring to speed their loan processing and crank out more loans.

The $1 billion-asset bank estimates the credit-scoring system will reduce its costs and generate more than $10 million worth of new business loans this year.

The system includes information on the businesses' net income, debt levels, age, credit reports, and the owners' personal finances.

"We've put ourselves in a much better position to serve this growing market," said Ronald McNeely, First Western vice president and manager of the loan center.

Previously, commercial lenders in the bank's branches handled all small- business loans. The branch lenders will continue to handle loans larger than $250,000.

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