The U.S. Small Business Administration microlending division has enlarged its lending footprint to include Nevada, thanks to a new partnership with Prestamos CDIF LLC.
Prestamos, a Phoenix-based nonprofit, is the first SBA microlender that has been licensed to do business in Nevada. Bob Holguin, SBA district director for Nevada, said the nonprofit has hired a full-time loan manager in Las Vegas.
“A lot of small businesses are looking for that little bump to get them ahead,” Holguin said. “I would like to have five micro lenders in Nevada. There is such demand for these loans.”
Prestamos’ subsidiary in Nevada is known as CPLC Nevada Inc. and Rupert Ruiz has been named its president.
The SBA’s Microlender Program defines a lender as a nonprofit organization with experience in lending and technical assistance. According to the SBA, technical assistance is requiring businesses to “fulfill training and/or requirements before a loan application is considered.”
Prestamos and other nonprofit lenders can offer short-term loans of up to $50,000, with $13,000 being the average loan amount. According to SBA guidelines, to be approved for a loan, a minimum 600 credit score is required with no bankruptcies, foreclosures or repossessions within three years of formal discharge.
The SBA said approval of a micro-loan takes between 45 and 60 days.
Holguin said there are other SBA lenders in Nevada that provide $50,000 loans — Accion Nevada and the Nevada Business Opportunity Fund — but they provide loans using other federal programs.
The SBA’s program will allow Prestamos to accept applications from start-ups and established small businesses statewide, along with creating fixed rate loans with rates up to 7.9 percent.
Eligible uses for microloans include working capital, inventory or supplies, furniture or fixtures, equipment, startup costs, acquisition, or refinance, according to the SBA. The federal agency said microloans cannot be used to pay off existing debts, personal expenses, real estate, and delinquent taxes or used as down payments.
Holguin said the difference between micro lenders and other SBA loan programs is that the money given the Prestamos comes directly from the SBA. He said Nevada didn’t need another large lender that provides SBA (7a) or 504 loans, but there was a “huge need for small loans” that many banks in Nevada don’t provide.
Holguin said the SBA was “always looking” to do business with micro lenders in Nevada. He said he has been talking to a credit union in Northern Nevada, but he declined to identify the credit union.
Ford to replace Wilcox at City National
Bruce Ford, who joined City National Bank in 2009 after serving as regional president and chief operating officer for Community Bank of Nevada, has been named regional banking president. He replaces John Wilcox, who plans to retire, the bank said.
Ford, who is senior vice president, will retain his position as City National’s business banking manager for Nevada, along with managing the day-to-day operations of the company’s eight branches statewide.
“We’re very grateful to John (Wilcox) for his contributions to City National’s success,” said City National Bank President Christopher Warmuth in a statement. “We are fortunate that Bruce (Ford) will lead our Nevada team going forward.”
Warmuth added that Nevada’s economy has improved significantly, and the bank is “optimistic about the growth opportunities ahead.”
During his career, Ford has worked for Wells Fargo Bank, First Security Bank, Pioneer Citizens Bank, First Interstate Bank, and Nevada State Bank. He is also past president of the Nevada Bankers Association and a graduate of the University of Nevada, Las Vegas.
Clark County Credit Union pays cash dividend
Matt Kershaw, president and Clark County Credit Union, is bullish on Southern Nevada, especially after the credit union posted 7.74 percent growth in its assets last year. As of Dec. 31, Clark County CU had assets of $586.1 million.
“We are pleased with the results of 2015 and look forward to another successful year,” Kershaw said recently at the credit union’s annual meeting.
As a result of the company’s successful 2015, this year’s cash bonus will total $3.08 million. The bonus dividend comes after the credit union ended 2015 with a net ratio of 12.48 percent, an increase from a ratio of 11.77 percent at the end of 2014.
Once the bonus dividend is distributed, Clark County CU’s net worth ratio will be 11.95 percent. The net worth ratio is defined as the ratio of the net worth of the credit union to the total assets of the credit union.
A credit union is categorized as well capitalized if it has a net worth ratio of 7 percent or greater, according to the National Credit Union Administration.
“We had another strong year of loan and new member growth,” said Kershaw, referring to the 23.5 percent loan growth and 8 percent new member growth. “We are back up to over 37,000 members, which is where we were in the year preceding the recession.”
The average bonus was $83, with the highest single bonus totaling over $16,000. Notably, every qualified member received at least $20.
“Our members are our owners, and we love being able to share our net earnings as a reward for member loyalty and participation,” Kershaw said.
Bank of Nevada earns $74 million in 2015
Bank of Nevada, a division of Western Alliance Bancorp., posted modest increases in net income for both the fourth quarter and 2015, according to its latest earnings report.
The Las Vegas-based business bank earned $21.6 million in the fourth quarter, compared with $18.9 million for the same period last year. For 2015, Bank of Nevada posted pre-tax income of $78.6 million, compared with $74.3 million last year.
“Credit for our strong performance goes out to all the associates within the company as we have strong momentum going into 2016,” said Robert Sarver, chairman and CEO of Phoenix-based Western Alliance.
Bank of Nevada, with branches in Las Vegas, Henderson, North Las Vegas and Mesquite, reported a gross loan balance of $1.74 billion, and deposits of $3.38 billion.