Sales and Marketing: How to Market SBA Loan Programs
April 2, 2019 @ 3 p.m. Eastern
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Sales and Marketing: How to market SBA 7(a) & 504 loans
Increase Your Loan Volume
Ken Rosenthal, CDC Small Business Finance
Chuck Evans, Capital Growth Solutions
Ken Rosenthal
CDC Small Business Finance Sr. Loan Officer, since 1991 – over 1,000 504 loans exceeding $2 billion
CDC Capital Markets - CDC Small Business Finance subsidiary, nation’s largest SBA 504 CDC
Morgan Stanley contract with CDC Capital Markets since 2010
Education and Training nationwide to promote 504 lending and 504 1st mortgage secondary market lending
Former NADCO Director and current NADCO Trainer of Sales and Marketing
Chuck Evans
President, Capital Growth Solutions
Commercial Lender since 1978 in North Carolina and Pennsylvania.
Managed Pennsylvania’s largest Certified Development Company for ten years.
Founded one of the nation’s more prominent SBA Lender Service Provider organizations with a focus on mission- based lending.
Current President and CEO of Capital Growth Solutions, one of the nation’s largest SBA 7(a) lender service providers.
Active supporter of NAGGL, NADCO and industry training.
We would like to thank Chuck and Ken for their time and providing information regarding their experience on SBA lending programs from their
perspective. All opinions, conclusions, and/or
recommendations expressed herein are those of the presenters and do not necessarily reflect the
views of the SBA.
Co-sponsorship Authorization: #19-0390-29. SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or
services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis.
Objectives
To help lenders increase their SBA 7(a) 504 volume.
Principals of Marketing Sales
Business Development as it specifically relates to the SBA business model
How to effectively market the SBA programs to different audiences
Target the most appropriate referral sources for the individual lenders
Discuss strategies for competing loan programs
Defining the Market
Small Business Owners
504 First Mortgage Lenders
7(a) lenders: Banks and Non bank lenders
Existing CDC and Bank Portfolio
Referral Sources
Referral Sources Lenders – Banks and Non Bank lenders
Commercial real estate brokers/agents
Accountants
Business and real estate attorneys
Mortgage brokers
Business Brokers
CDC board members/Bank Board members
Banks vs. Non bank lenders
Relationships vs Transactional lending
National Banks
Regional Banks
Community Banks
Non bank lenders
Insurance companies
Existing Portfolio
Familiarity with 504/7(a) program
Expand business
Same advantages as the first time
Education
Be the expert
Quick cash flow, Eligibility, deal structuring
Turnaround time
Prequalification
5 ways to buy real estate
Timing / Execution / Staffing
Understanding Sr. Management/Board goals and expectations
Marketing via process efficiencies
Listening to customer needs/establishing long term relationships
Setting expectations (under promise, over deliver)
7(a) Marketing Tools Process and Efficiency are the Best Marketing Tools
Develop your 7(a) Strategic Plan
Determine your 7(a) Business Model & yes there are several
Effectively Manage Risk – Safety and Soundness
Develop Process Efficiency – A quick no or conditional yes is your best marketing
Key Considerations to Success
Direct Marketing
One on one - face to face
One on one – email
One on one – phone
Cold calls vs. warm calls
Name and phone number approach
Relationship Marketing
Transactional vs. relationship: what is the difference?
Core relationships: How many?
Secondary relationships
Other relationships
Entertain Referral Sources
Lunches
Coffee
Entertainment
Sporting events
Music
Golf, Waterskiing, Sailing, Surfing
Group Marketing
Dog and pony shows
Lender training
Real Estate broker training
Receptions
Presentations to groups
Seminars
Indirect Marketing
Direct mail
Postcards
Newsletters
Fact sheets
Email blasts
Advertising
Radio or TV ads
Radio or TV talk shows
Print ads – newspapers, journals
Publicity
Press releases - loan approvals
Press releases – featured customers
Press releases – awards
Write articles or column
Advertising & Public Relations
Community activities
CDC/Bank signage
Advertising specialty items
Greeting cards
Contests – loan officers, banks, brokers
Joint efforts with banks
Awards
Bank awards – lenders of the year
Large bank lender
Community bank & non bank lender
Emerging lender
Real estate broker of the year
Referral source awards
Territorialize awards
Social Media
LinkedIn – Premium i. Search ii. Post
i. Goals and Expectations
ii. How does that translate to marketing efforts?
iii. Is your process efficient?
iv. Temper expectations and clearly explain potential pitfalls (credit/eligibility) upfront.
v. How do you add additional value?
Any questions?
Mahalo Nui Loa!
Lender Relations Specialist Contact Info
Mike Rossi – 302-573-6294 – [email protected]
Dana Winston – 502-582-5971 x227 – [email protected]
Lisa Denson – 615-736-2991 x247 – [email protected]
Maria Lloyd – 615-736-7427 – [email protected]
Leo Lopez – 304-347-5220 – [email protected]
Rick Haney – 304-623-7449 – [email protected]
Or contact your local LRS – www.sba.gov