Aug. 8, 2019

This paid piece is sponsored by The First National Bank in Sioux Falls.

While Sara Jamison was trying to open a business, the federal government was shutting down.

The longest government shutdown in U.S. history went from mid-December 2018 until well into January 2019.

For Jamison, whose dream of bringing sustainable, ethical fashion to downtown Sioux Falls required a small-business loan, the timing couldn’t have been tougher.

Fortunately, Jamison only needed to look up the street on Phillips Avenue to The First National Bank in Sioux Falls.

“As a new business owner and setting out on this journey, it’s always exciting and empowering to have other people excited about your business. I very much felt that enthusiasm from First National Bank,” Jamison said.

The bank ultimately would help her finance a 7(a) loan from the U.S. Small Business Administration – a way the SBA helps small businesses obtain necessary credit by giving the government’s guarantee to loans made by commercial lenders.

But with federal agencies, including the SBA, shut down for more than a month, Jamison worried that her loan application would not be processed in time for her to open in her location of choice on schedule.

The business banking team at FNB helped Jamison through the shutdown by offering a short-term, single-pay note to finance her new business. Once the government reopened, Jamison’s SBA loan was processed and approved within a matter of days.

She opened Terra Shepherd Boutique & Apothecary on April 29.

“Beyond the investment of the money, people at the FNB are truly invested in your success,” Jamison said. “They want to do what they can – beyond providing the loan­­ – to help you have a solid foundation and find success.”

It’s that type of solution-minded approach and work ethic that creates win-win relationships for the business and the lender. So it’s probably not surprising that FNB is the leading community bank in South Dakota for SBA 7(a) loans.

The bank has closed on 11 SBA 7(a) loans in the current fiscal year, totaling more than $2.4 million.

“We hope these new relationships will provide additional jobs and economic growth for the city and state of South Dakota for decades to come,” said Jeremy Keckler, senior vice president and business banking manager.

“I don’t see the momentum slowing down any time soon.”

The SBA 7(a) loan program allows businesses meeting the requirements to access up to $5 million in loans. The loans can be used to:

• Purchase new land, including construction costs.
• Repair existing capital.
• Purchase or expand an existing business.
• Refinance existing debt.
• Purchase machinery, furniture, fixtures, supplies or materials.

And while instances such as the government shutdown are rare, a variety of circumstances always can arise during the lending process. That’s why FNB takes communication between the bank and the borrower seriously.

“Communication is really the most important thing,” FNB business banker Scott Speer said.

“We’re really good at keeping those lines of communication open, being upfront about how the process works and giving them updates along the way.”

You can find more information on SBA 7(a) loans on FNB’s website. To talk about making your business dream a reality through an SBA loan, you can email or call Scott Speer at 605-335-2929.