The Money Store Makes It Dozen Years as SBA Champ

It has been 12 long years, but you won't hear anyone at Money Store Investment Corp. complaining.

For the 12th consecutive year, the Union, N. J.-based company originated more loans that were approved under the U.S. Small Business Administration's 7(a) program than any other lender in the nation.

Once again, it wasn't even close for other top SBA lenders. For the fiscal year ended Sept. 30, the company's 1,257 loans were more than double the 591 made by Banco Popular de Puerto Rico, the lender with the second- largest number of loans during the year. And Money Store's $470.8 million worth of loan approvals was more than three times the $114.9 million lent by Heller First Capital Corp., which had the second-highest dollar volume.

Larry Wodarski, president of Money Store Investment, credits the company's string of first-place rankings to the fact that it was one of the first lenders to make a concerted SBA effort.

This early start helped the company get a jump on overcoming the sometimes costly and time-consuming requirements of the SBA.

But changes are coming even to this market.

"With interstate banking coming, and with banking infrastructure changes, it's a very different and more competitive market out there," he said. "You really have to have a certain expertise to successfully navigate the process."

Heller First Capital Corp. has learned quickly how to navigate that process. Since acquiring its SBA lending authority in 1992, the company has grown from 102 loans worth $43.5 million in fiscal 1993, to its 321-loan, $114.9 million performance this past year.

Lauralee Martin, senior group president with Heller Financial Inc., said uncertainty over the future of the SBA programs would not slow her company's growth. Heller is beefing up in the Midwest, California, and Texas.

In its first year in the top 25 ranking, AT&T Small Business Lending Corp. led the top 25 in the average size of its new SBA loans. With a $483,425 average loan size, AT&T topped three California-based lenders: Government Funding Calbidco with a $425,580 average, Bank of Commerce in San Diego with a $411,753 average, and Truckee River Bank with a $392,069 average.

While nonbank lenders and small banks had the largest average loan value, it was the big banks that had the lowest average loan size.

For example, First National Bank of Boston's $94,441 average loan was the lowest among the top 25. In fact, big banks took the last six places in terms of average loan size among the 25 largest SBA lenders.

The reasons range from these banks having vast branch networks and credit-scoring mechanisms to the importance of these loans for Community Reinvestment Act purposes.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER