By Michael Souza
PBN Staff Writer
WATERBURY – Webster Bank has been selected by the U.S. Small Business Administration to receive the 2012 Eagle Award as the Top Dollar 7(a) and Top 504 Lender for Connecticut. For five consecutive years, Webster has been the leading SBA lender in Connecticut and has issued more than $90 million in new credit.
The 7(a) is the SBA's most popular loan program where small-business owners can get up to $750,000 from your local 7(a) lender, backed by a partial guarantee from the SBA. The eligibility criteria for the program are the broadest of all the SBA loan programs, but still quite restrictive for startups and businesses related to financial services.
The purpose of the 504 loan program is to supply funds for asset purchases such as land or equipment. Typically it is funded by a loan from a local lender as well as a second loan from a certified development company that's funded with an SBA guarantee for up to 40 percent of the value of the asset up to $1 million and a 10 percent contribution of equity of the borrower.
The 504 program is restricted to small businesses with less than $7 million in tangible net worth and less than $2.5 million in net income. The program tends to exclude most service businesses that need to purchase land or equipment. Personal guarantees are also required.
“Webster is pleased to receive this honor,” said Robert Polito Jr., senior vice president and director of Government Guaranteed Lending for Webster in a statement acknowledging the achievement.
“One purpose of our Annual Lenders and Partners meeting is to publicly thank our partners for their tremendous support of the SBA and the Connecticut business communities by helping us to help Main Street businesses through our loan guaranty program,” said Bernard Sweeney, district director for the SBA in recognizing the accomplishment. “We look forward to continuing the growth in SBA activity and partnerships throughout 2013.”