Huntington Bank was recently named the No. 1 Small Business Adminstration (SBA) lender in the country by helping thousands of small businesses expand and create jobs.
Huntington led the nation in terms of number of 7(a) loans and volume based on third quarter rankings for fiscal year 2014. The Columbus-based bank moved up from its previous position as the third largest SBA lender in the nation in 2013.
Joe Sheena is a hands-on owner making pizza at Neopapalis. Toledo Free Press photo by Duane Ramsey
During the first three quarters of SBA’s fiscal year 2014, which ended June 30, Huntington Bank wrote 1,705 SBA loans in Ohio alone, totaling $199,345,900. The top national ranking is noteworthy because the bank is ranked 33rd in the country in terms of assets and only makes SBA loans within its six-state footprint.
Huntington Bank made more than half of all SBA 7(a) loans in its footprint for the first six months of the fiscal year. It made 1,804 loans while the remainder of the industry made 1,758 loans in Huntington’s service area during the period from Oct. 1 to March 31.
“Huntington is committed to supporting small business growth as a key way to strengthen our communities as they continue through the economic recovery,” said Steve Steinour, chairman, president and CEO of Huntington Bank in the announcement of its SBA rankings.
“Small businesses are the foundation of our Main Street economies throughout the United States. These businesses generate two thirds of all new jobs and help keep our neighborhoods healthy,” Steinour said.
“Huntington is very big in the small business market. We focus on small business and have a great reputation in that arena,” said Ken Connell, executive vice president and business banking sales director.
“We listen to what companies need for expanding their business. If SBA is the best solution for them, we have the expertise in SBA lending. We help companies expand their business and create more jobs,” Connell said.
Based in Toledo, Connell is responsible for 16 managers and markets in six states, including Northwest Ohio and part of southeast Michigan.
The original owner of PizzaPapalis in Toledo, JJSV Enterprises, obtained SBA financing through Huntington Bank to open that chain’s first restaurant in Ohio in 2009. The store located adjacent to Fifth Third Field in Downtown Toledo remains the only one in Ohio to date.
“With SBA, you get longer terms and lower interest rates for reduced principal which allows small business owners to have more capital that is critical in the restaurant business,” said Joe Sheena, of Sheena Management, which now owns and operates the PizzaPapalis chain based in the Detroit suburb of Troy.
Sheena said they opened the first Pizza Papalis store in Greektown in 1986. The success of the chain allowed them to open a new concept called NeoPapalis in downtown Ann Arbor in 2012 without SBA financing, he said.
Patrons can create their own pizza with fresh ingredients and watch it made and slid into the oven at Neopapalis which also serves a selection of sandwiches and salads made fresh to order.
Sheena explained that they plan to offer franchise opportunities with the NeoPapalis concept that is very popular on the West Coast. He said they would encourage franchisees to consider using SBA financing to get their business started.
he husband and wife team of Jake and Emily Dunfee, who owned the Rescue Marine and Repair, wanted to purchase another established business. However, their bank at the time told them that they couldn’t help them with it, she said.
Emily said they knew Lee Vivod, a business banking rep from Huntington’s office in Port Clinton, from living in the community.
Securing financing
A year later, the couple decided they wanted to open a restaurant in the community. By that time, they were doing all their business banking with Huntington. Once again, the bank helped them secure SBA financing to establish the Hidden Beach Bar (and restaurant) in Marblehead.
Most recently, the Dunfees got an additional SBA loan to refinance and expand their original marine rescue and repair business. They have a total of about 20 employees at the three businesses.
Emily said they told the local bankers at Huntington that “you really do make dreams come true.”
Ohio actually led Huntington’s combined mid-year ranking for number of 7(a) loans and dollar volumes with 1,050 loans totaling $118,900,300, followed by Michigan with 472 loans totaling $66,091,700, Indiana with 116 loans totaling $23,695,500, western Pennsylvania with 90 loans totaling $10,632,400, and West Virginia with 37 loans totaling $7,635,400.
Locally, more than $70.94 million in SBA loans were written for small businesses in the 5th and 9th U.S. Congressional districts in Northwest Ohio, based on total loans approved as of Aug. 1. These figures were provided by the SBA’s Great Lakes Regional Office in Detroit.
In Congressman Robert Latta’s 5th district, a total of 167 SBA loans were written for a total of $36,839,200. It included nine 504 loans for $4,224,000 and 158 7(a) loans for $32,615,200.
In Congresswoman Marcy Kaptur’s 9th district, a total of 180 SBA loans were written for a total of $34,104,700. It included five 504 loans for $1,549,000 and 175 7(a) loans for $32,555,700.
Other lenders
However, Huntington is not the only local bank active in the SBA lending market.
Two other Ohio-based banks that operate in the NW Ohio region were active in Ohio’s SBA lending market during the first three quarters of fiscal 2014. KeyBank made 64 loans totaling $21,571,500, while Fifth Third Bank made 34 loans totaling $20,987,700, according to the SBA.
Waterford Bank NA based in Sylvania provided SBA solutions for American Manufacturing Inc. of Toledo. It allowed that firm to increase its business and employment. The company once had 125 employees but was reduced to a skeleton crew due to the recent recession.
American began receiving orders from Chrysler, Ford, General Motors and other manufacturers. The firm specializes in high volume production of steel shipping containers for those automakers and their suppliers.
Chuck Gotberg, owner of American Manufacturing, went to Waterford Bank looking for a new source for commercial banking. He said they needed working capital to keep the business going to meet the new demand from the auto industry.
“Waterford was able to offer us more money and lower rates with the SBA options. We have a beautiful relationship with Waterford for all our business banking,” Gotberg said.
With the help of SBA financing through Waterford Bank, American once again has 125 employees at its 300,000-square foot manufacturing facility in Toledo, formerly operated by Surface Combustion. Gotberg said they are still looking for more qualified workers to meet their increasing business.
Waterford Bank opened in August of 2007 and now has offices on McCord Road in Sylvania, in Bryan and Perrysburg. The bank reported total assets of $449.9 million, deposits of $400 million of loans of $332 million in December of 2013.
