Category Archives: Banking Services
The SBA Debt Refinance Program is back! Does your small business have a maturing or high-cost conventional loan for real estate, buildings or equipment? The long-term, fixed rate financing available through the SBA Debt Refinance Program can help small businesses that face significant balloon payments, require financial flexibility or want to take cash out from appreciating assets for expansion.
Under the new program, small businesses that refinance into a SBA 504 loan can take advantage of lower rates, fixed for 20 years, to lighten their monthly debt payments, improve cash flow and stabilize operations.
These parameters can help determine whether this program might be a good fit for your business:
- The debt to be refinanced must be at least two years old.
- The debt to be refinanced must be current during the last 12 months.
- Eligible small businesses can obtain up to 90 percent financing for secured debt and qualified business debt.
- Eligible fixed assets include real estate and equipment.
- Cash out for operating expenses, including debt consolidation, is limited to 75 percent loan-to-value.
- Cash out can be used for eligible business expenses (salaries, rent, utilities, inventory).
- Existing government guaranteed loans are not eligible to be refinanced.
- The eligible debt being refinanced is for the outstanding principal balance.
Other conditions or qualification requirements may apply.
For those considering applying for a new loan, we offer a variety of government guaranteed loan products that require less cash investment up front and offer longer loan terms, which can help bridge the gap for businesses that otherwise would not have access to capital.
- SBA 7(a), 504 and 504 refinance
- SBA Export Express Export Working Capital International Trade
- USDA Business & Industry Loans Food Desert Rural Energy for America Program (REAP)
- Export Import Bank of U.S.
If you would like more information on the SBA 504 Refinance Program or any of our government-guaranteed loan products, please contact Leticia Scearce, Senior Vice President/Government Guaranteed Lending Manager, at firstname.lastname@example.org or (602) 445-6511.
You can now use your Bank of Tucson credit and debit cards on your compatible Apple® devices to pay at many of your favorite stores and apps. Apple Pay® is an easy, secure and more private way to pay.
EMV chip cards are making it more difficult for criminals to steal or clone credit card information, but there are still vulnerabilities, and when purchases are made online, chip card security features don’t work. Plus, if you’ve used your chip card recently, you’ve probably noticed that it takes much longer to authenticate a purchase than the old swipe cards. Apple Pay brings both convenience and an additional layer of security that even the EMV chip cards can’t provide.
First, paying with Apple Pay is as easy as holding your Apple Pay compatible device in front of the payment terminal and placing your thumb on the device’s Touch ID. Authentication occurs within seconds (and you don’t even have to take your wallet out!). After completing a payment, your phone will vibrate and a confirmation will appear in your Wallet app.
Second, with Apple Pay, instead of using your actual credit and debit card account numbers when you add your card to Apple Pay, a unique Device Account Number is assigned, encrypted and securely stored. Each time you make a transaction with Apple Play, a one-time unique code is generated, adding another layer of protection.
Your actual credit or debit card numbers are never shared by Apple with merchants or transmitted with payment. In addition, paying with Apple Pay is private, as the cashier never sees your name, card numbers or security code.
While Apple Pay is not available everywhere, the list of apps as well as retailers that accept Apple Pay is growing constantly. Simply look for these symbols when you check-out:
Apple Pay will work on:
- iPhone® 6, iPhone 6S, iPhone 6 Plus, iPhone 6S Plus or later model
- Apple Watch®
- In-app, Apple Pay can be used with your iPhone 6, iPhone 6S, iPhone 6 Plus, iPhone 6S Plus, iPad Air™ 2, iPad Pro, iPad mini 3, and iPad mini™ 4
To add your Bank of Tucson credit or debit card, simply open the Wallet app and click the “+” button in the upper right hand corner.
There is no cost for Apple Pay from Bank of Tucson. Based upon your device’s data plan, additional message and data charges could apply.
To learn more about Apple Pay, visit the Apple Pay page on our website.
Securing a business loan can be vital to a company’s growth or even survival. Senior Vice President Leticia Scearce, head of Grandpoint’s Government Guaranteed Lending division, shares some great loan options that are available through various government programs which can be facilitated by the Bank and its divisions, Bank of Tucson, The Biltmore Bank of Arizona and Regents Bank.
Q: What should people know about the government guaranteed lending programs that are available?
LS: Government guaranteed loans are there to help small- and medium-sized businesses, since these loans require less cash investment up front and offer longer loan terms. Government guaranteed loans can help bridge the gap for small- and medium-sized businesses that otherwise would not have access to capital. Also, many businesses that could qualify for conventional loans opt for government guaranteed loans instead because they require less money down and have longer terms. When opting for guaranteed loans, clients usually pay two percent more in fees for 10 to 15 percent cash down versus the 30 percent down for conventional loans.
The most well-known government guaranteed loan programs are those offered by the Small Business Administration (SBA) loans. These loan programs can include financing for owner-occupied real estate purchase or construction, refinance, equipment, business acquisition, exporting and short term working capital (revolving lines of credit).
Another very attractive loan program is available through the United States Department of Agriculture (USDA). Eligible USDA loans can be for real estate and equipment (including renewable energy projects) in rural or farming areas and can have a loan term up to 30 years. In addition, there are a few subprograms under the USDA loan program umbrella that allow us to finance projects in urban areas that have a local foods component – food manufacturing, distribution, retail, etc. The USDA loan product is attractive because it offers the longest term of the government guaranteed loan programs; is more flexible in pricing and prepayment penalties; has less oversight with franchises and dealer agreements; and has less regulation overall. It needs to be mentioned that even though the program is offered under the U.S. Department of Agriculture, the financing of eligible projects / properties under this program do not need to be agriculture related. Rather, its availability is contingent on the current population levels of a specific census tract in which the business or property will be located.
Q: What is the current status of government guaranteed lending?
LS: We’re hitting record levels of government guaranteed lending as the economy is improving. One reason is that the banks’ lending standards for conventional loans haven’t changed much since the recession, which makes guaranteed loans more attainable and attractive.
Q: Have you seen any big changes in the government guaranteed lending programs that business owners should know about?
LS: We saw a big change recently in the SBA 504 program. This product offers low cash down and a 20-year fixed rate on the client’s second loan, which is financed by the SBA. The agency now allows the client to refinance existing loans on owner-occupied real estate and allows some cash out provisions, helping the small business owner access capital for long-term working capital.
Q: How do the members of the government guaranteed lending program for Grandpoint Bank and its divisions work together to assist clients?
LS: We are tasked with helping all our regions expand our government guaranteed lending, which is a combination of SBA loans, USDA loans and export loans. I’m based in Phoenix at The Biltmore Bank of Arizona, along with Debbie Lindsay, our loan administrator. My team’s loan specialist/underwriter, Marchette Wesley, and portfolio servicer, Hector Palomares, are in California, and I travel to our offices throughout Arizona, California and Washington to train our staff about our guaranteed loan platform. We assist our relationship managers in deepening their knowledge base with the different loan products we have available. We also train our credit staff so they can recognize when a conventional loan isn’t suited for a client and a government guaranteed loan could offer a great alternative.
Mark Phillips, Grandpoint Capital’s chief credit officer, and David Ross, Grandpoint Bank’s chief credit officer, and our regional bank presidents have been very supportive of our division and expansion.
Q: How is Grandpoint Bank, and its divisions, differentiating itself in this type of lending?
LS: Our Southern California and Vancouver, Washington markets do a lot of export business, so with our large geographic footprint and sizable lending capacity, we can target more middle market customers. In Arizona, we have more rural opportunities, and thus the USDA programs are a great fit. We are already one of the top lenders in the state for USDA loans. We are looking forward to expanding our footprint in USDA lending in all of our markets. Seventy to 90 percent of government guaranteed loans don’t count against a bank’s legal lending limits, so we have more capacity to service larger companies as well.
Q: How did your career lead you to becoming the head of the government guaranteed lending division?
LS: I was drawn to SBA lending in 2007 when I was working in commercial lending at a community bank here in Scottsdale. I further progressed into this niche lending sector during the recession when the credit markets froze and guaranteed loans became even more essential. When I joined The Biltmore Bank of Arizona in 2011, I helped established the SBA department, and a year later I pushed for expansion into other government guaranteed loan programs such as USDA loans and export financing. A diverse, more inclusive platform was important to our brand and to our customer base, and I was fortunate that key management at Biltmore trusted and supported my recommendations. In 2012, Biltmore Bank was acquired by Grandpoint Bank, and with the backing of a larger bank, it allowed us to expand our lending efforts even further. Personally, Grandpoint gave me access to a larger platform with great management resources to help expand and develop this lending niche. Prior to the acquisition, our government guaranteed lending activity was small, but many of the banks acquired by Grandpoint around the same time had SBA loan portfolios, so my servicing and liquidation role increased. Soon thereafter, our senior management team decided to expand this niche of lending for the whole family of banks. I’m pleased to have a very amazing team. We all have to stay up to date on policies and procedures for all of these programs. This type of lending makes you a better banker, because it requires a complex level of understanding and mastery of detail; it makes you sharper.
Q: Are you involved in any civic work?
LS: I serve on the City of Phoenix Investment Advisory Board, which advises the city on its entire investment portfolio.
Q: What do you like to do for fun?
LS: My husband and I are into cycling, and I love to hike. I also enjoy cooking and baking, and I’m a wine connoisseur. We have visited more than 100 wineries, and I’d love to become a sommelier someday. More immediately, I’d like to look at growth and loan opportunities in the wine industries throughout the various regions we serve. I also enjoy reading, gardening, and I am a big tennis fan!