Wells Fargo’s Unger sees increased financing

The secret is out: Banks are lending again.

Confidence has been restored in the past two years in the areas of buying businesses and real estate, expanding existing businesses and establishing startups, said Wells Fargo Vice President Business Development Officer Roger Unger, who cites the economy as the main driver.

“Three years ago it was tough because people were afraid and unsure of what the economy would bring,” Unger said. “Las Vegas has got a lot more small businesses opening up and doing more volume; there’s a lot more activity.”

The U.S. Small Business Administration 7(a) Loan Program set a lending record this year as 52,044 loans totaling $19.19 billion were approved. That’s a 12 percent increase in the number loans and 7.4 percent jump in dollar amount compared with 2013.

For the past six years, Unger, a Las Vegas native, has led SBA lending at Wells Fargo on South Rainbow Boulevard in Las Vegas.

“I look at a lot of requests and I’m out talking to business and real estate brokers to drum up business,” he said. “I’m always talking on the phone to potential clients and looking at packages for people to see if they qualify. I also coach borrowers and talk about SBA requirements.”

His clients appreciate the service.

Mike Murphy, owner of several Meineke Car Care Centers throughout Las Vegas, said he’s dealt with many bankers over the past 30 years.

“Roger is the most well-informed, competent and considerate banker I’ve ever dealt with,” he said. “He’s a straight-shooter who knows what he’s talking about. If you have any reason to explore the SBA, talking to Roger is undoubtedly your best first step.”

Unger said it can take a year for a new business to go through the SBA loan process.

“People have to have money saved up because the SBA requires a certain dollar amount toward the project and more on startups,” he said.

Unger walks applicants through the SBA lending process by identifying how much they want to put down, what they want to do and if they meet the eligibility requirements.

“For startups, someone can’t just come to you with a good idea, they have to have a business plan and projections,” he said. “We’ll also look at their personal tax returns and make sure they make enough to pay personal debt. A startup dream won’t pay personal bills, it will generate extra money. It takes a good year for a company to turn profit.”

If a person isn’t prepared with a business plan or projects, Unger said he’ll direct them to the University of Nevada, Las Vegas’ economic development office or to Las Vegas-based SCORE, a nationwide nonprofit association dedicated to educating entrepreneurs.

“UNLV has a good program and SCORE has always been a good resource,” he said. “They help them create a business plan, projections and put their ideas on paper.”

The two types of SBA loans are 504 — which Unger described as real estate driven — and the 7A “catch-all SBA loan product,” which can be used for start-ups, expanding businesses, equipment financing, real estate, partner buyout and business acquisition.

Unger said good credit and character are crucial when it comes to SBA lending.

“We want to make sure they’re not losing money and that they have the desire to pay us back,” he said.

Anthony Timmons, assistant vice president of communications, said that in Nevada, Wells Fargo has approved more than 75 loans totaling more than $27 million for the year ended Sept. 30.

Other major banks across the valley are also active in SBA lending.

Locally, Keller Williams, a real estate company, bought a new office building on South Eastern Avenue in Henderson at the beginning of the month with help of TMC Financing, a Las Vegas-based SBA lender. Bank of America provided the balance of the loan.

“We had been renting for eight years,” Keller Williams Southern Nevada operating partner Jaime Velez said in a statement. “Now that our group purchased the building through an SBA 504 loan, we have another way of creating opportunities. As with residential properties, it is always better to purchase than to rent.”

The SBA loan process, Unger said, can range from 60 to 90 days for a startup company and less for a real estate deal.

“We’re a preferred lender, which means once we’ve approved the deal we don’t need the blessings of the SBA lenders so the deal is much faster,” Unger said. “We have an average of 45 to 60 days for a real estate transaction, which is easily 90 days for banks without that status.”

In the future, Unger said businesses will continue to see the SBA program’s advantages.

“I think we’ll continue to lend in the small business arena,” he said. “I also think the SBA program will continue and I don’t see the next administration, whether they’re a Democrat or Republican, changing that because they’ll see the advantages of it.”

Unger said being an SBA lender is not without its challenges.

“A lot of people are afraid because they think it takes too long or it’s too restrictive but it’s not,” he said. “We have a good system in place.”

Unger added that not everyone knows Wells Fargo is lending to small businesses.

“We’ve seen some nightmares where small banks have taken a couple years to approve a loan,” he said. “If they’re looking for an SBA loan they need to talk to a preferred lender who offers 504 and 7A and they need to do their homework.

“We’re aggressively looking for businesses to lend to and they need to pick up the phone and call.”