10.26.10: ValueXpress and Lumbee Guaranty Bank Obtain SBA 7(a) Approval

ValueXpress and Lumbee Guaranty Bank, based in Pembroke, NC, recently teamed up to secure a $1,950,000 SBA 7(a) loan commitment secured by a 57-room Country Inn & Suites hotel located on I-95 in Lumberton, NC. The borrower is a client of both ValueXpress and Lumbee Guaranty Bank. ValueXpress provided a $2.5-million CMBS conduit loan for the borrower in 2007. Lumbee provided an SBA 504 loan on another limited-service hotel owned by the borrower in 2008. The borrower arranged for Lumbee and ValueXpress to work together on the refinancing, recognizing that ValueXpress has substantial experience in the origination and packaging of SBA 7(a) loans, while Lumbee could continue to build on its long-standing client relationship by sponsoring the loan. In addition, Lumbee could not provide a loan for the client without SBA assistance, as the proposed loan amount in combination with other loans Lumbee had provided to the client would exceed bank policy guidelines.

“I was impressed by the quality of work, knowledge of the SBA 7(a) program and speed at which ValueXpress processed the loan,” comments Kyle Chavis, Senior Vice President of Lumbee Guaranty Bank. “We are a relatively small community bank and I wear a lot of hats; to be able to shift the processing burden to ValueXpress was a big reason we pursued the transaction,” he said. “Based on the positive experience, I am hopeful that Lumbee Guaranty and ValueXpress will work together on more SBA 7(a) transactions in the future.”

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