Login
Key Bank is another company committed to the growth of women-owned small businesses. They have lent more than $6 billion to women business owners since 2005—the year Key4Women was established. The Key4Women program provides women in business access to capital, customized financial solutions, educational and networking opportunities.
PNC Financial Services has demonstrated its commitment to supporting women-owned businesses through corporate actions. For example, since 2007, PNC has spent more than $353 million directly with Women Business Enterprises (WBEs). The supportive actions of PNC transcends to its client base.
There are more than 1400 PNC-Certified Women’s Business Advocates (WBAs) who are bankers especially committed to supporting the achievement of women who own or run businesses. In addition to delivering the financial products, services and resources, the WBAs are often in management, or other commanding roles in organizations that instruct women or bring together women in business.
Union Bank, on the other hand, offers a unique lending program specifically for women-owned (and minority- and veteran-owned) businesses. The program has been in use for over two decades. Its financing program provides direct access to capital for women-owned businesses with less restrictive lending requirements and has some flexibility on underwriting loans. Union Bank is regulated by the Federal Acquisition Regulation (FAR), so if a loan is on the fence and can’t be financed under the regulated guidelines, Union Bank partners with over 21 outside Community-Based financing partners to help secure financing without brokering out the deal. Talk about going the extra mile on behalf of WOBs!
“Wells Fargo Has Made A Commitment To Raise $55 Billion For Women-Owned Businesses In The United States By The Year 2020.”
Applications can be completed online for credit lines and loans up to $100,000. Access to larger limits are available through their direct bankers. WOBs have the option to choose from unsecured or secured loans with fixed- or variable-rate financing programs.
According to Union Bank, ‘Women-Owned Business’ is defined as a woman who owns at least 51% of the business, manages the day-to-day operations and the company has been in business for at least two years. The bank’s special lending program is focused on WOBs having annual sales up to $15 million with a loan limit of $2.5 million for their women-owned business lending portfolio.
It is an exciting time for women-owned businesses as there is more education and opportunities with growth potential and access to capital. Union Bank’s lending program is obtaining fruitful results. One of the companies benefiting from the program is FCI Management. FCI Management was created in 1998 and provides customers with innovative strategies and solutions in the energy and water industries. It offers more efficient systems to customers which reduces costs, makes a positive impact on climate change, and creates a sustainable global environment.
Union Bank was able to accept FCI Management through an examination of the positive repayment history between FCI Management and one of its major clients. Union Bank regulated the loan amount using the SBA CAPLINE Program—a program for loans up to$5 million to help small businesses make their cyclical working and short-term capital obligations. This allows FCI Management to amplify and preserve its cash flow while abolishing their factoring line, which carried high fees and interest. Union Bank was able to give the company a one million dollar SBA CAPLINE and save them $150,000 in annual interest and fees.
“…the fact that we were able to get the loan actually reduces the amount of interest that we’ll have to pay using any type of loan or financial vehicle. So, I think that’s going to save us a tremendous amount of money on interest,” said Founder and CEO of FCI Management, Patricia Watts. The company can now continue to expand, and add additional support and sales staff.
Union Bank also termed out the current balance on the factoring line by utilizing the SBA 7(a) program—the SBA’s most prevalent loan program, which provides financial assistance for businesses that have special requirements. Watts was able to participate in the SBA’s 504 loan program which allowed her to purchase the building she has occupied for the past four years.
A 504 loan is a fixed-rate, 10 percent down, long-term loan providing revenue for the acquirement of fixed assets (e.g. buildings, machinery, real estate, etc.) at lower market rates.
FCI Management is just one of the many women-owned businesses taking advantage of Union Bank’s unique loan program. More financial institutions are coming on board pledging resources to help women-owned businesses, spreading awareness and connecting women to opportunities. Visit unionbank.com or sba.gov to be one step closer to growing your business with the necessary capital.