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SBA Loans up 30%; KY Celebrates at 2015 KY Lender Awards Event

Advisory Date: 
Wednesday, December 2, 2015
Advisory Number: 
16-1202-2KY
Contact: 
michael.ashcraft@sba.gov or 502-582-5971
Success Stories: Broadbent Hams and Auntie Anne’s Pretzels

The SBA Kentucky District Office announced recently its annual Lender Awards for Fiscal Year 2015 at the Kentucky SBA Lenders Conference in Louisville.

There were 759 SBA 7(a), 504 and microloan loans approved for Fiscal Year 2015, with a loan value of $205.9 million. That is an increase of over 30% from a solid FY2014 in loan dollars and the highest loan dollar amount in at least a decade. SBA Kentucky District Director Ralph Ross stated, “SBA had an incredibly robust year in 2015. We are grateful daily for all that our SBA lenders do to help small businesses in Kentucky and cannot thank them enough for their hard work and continuing commitment to SBA lending.” The lender awards, loan numbers and dollars are listed below

Two examples of the positive impact of these SBA loans in Kentucky are B & R Drennan Enterprises, Inc., D/B/A Broadbent Hams in Kuttawa and Mollison Enterprises, LLC, D/B/A Auntie Anne’s Pretzels in Elizabethtown.

Beth and Ronnie Drennan purchased the 90 year old Broadbent Hams Company in 1999 and continue to win awards at the Kentucky State Fair for their products. An SBA 504 loan through the Purchase Area Development District and Fredonia Valley Bank enabled the company to consolidate the company from three locations into a new facility in Kuttawa to improve efficiencies, enlarge the product lines, expand the mail order division and add 16 new full-time employees. Mr. Brent Bugg with Fredonia Valley Bank stated, “Fredonia Valley Bank has had the privilege of working with Ronnie and Beth Drennan from the beginning and have enjoyed watching them flourish with the business. They are two of the hardest working people that I know, and Fredonia Valley Bank is proud of Ronnie and Beth’s achievements over the past 18 years.” Marta Elliot, Director of Business Lending at PADD, added, “The Purchase Area Development District is very proud of the success and accomplishments of Ronnie and Beth Drennan since they purchased Broadbent Hams. They are down to earth individuals and very hardworking.”

Mollison Enterprises, LLC is a franchisee of Auntie Anne’s Pretzels, a national chain of pretzel stores and kiosks. Dwayne, a service disabled U.S. Army veteran, and Tawana Mollison opened their kiosk in The Elizabethtown Towne Mall. The Mollisons were referred to the UK Small Business Development Center in Elizabethtown, where a business plan was developed, but due to the decline of sales at many malls at that time, lenders were hesitant to consider financing a food kiosk in a smaller mall. The Mollisons’ persistence paid off when they visited Fort Knox Federal Credit Union and spoke to Michael Richardson. Mike was impressed with their business plan and the time they had spent preparing themselves for the franchise opportunity, and the credit union approved an SBA 7(a) loan. Dwayne and Tawana Mollison stated, “The UK SBDC in Elizabethtown is an office with a small town feel. They aid people with achieving big dreams and help make the impossible possible.” Steve Heil, the UK SBDC Management Consultant who worked on the project, added, “The Mollisons’ commitment to family, faith and community drives the success of their family-owned business.”

                                           FY2015 SBA Lender Award Winners in Kentucky

7(a) Loans by Community Banks         Award        Loan #               Loan $

Community Trust Bank, Inc.; Pikeville     Gold            69 loans            $  8,981,600

MainSource Bank; Greensburg, IN          Silver           27 loans            $15,348,000

Stock Yards Bank & Trust; Louisville       Bronze        14 loans            $  5,590,200

7(a) Loans by National / Regional Banks:

U.S. Bank, National Association               Gold          125 loans            $26,738,500

The Huntington National Bank                Silver           80 loans            $13,279,000

JPMorgan Chase Bank, NA                        Bronze        28 loans            $  7,963,600

The Kentucky District Office also recognized Top Performers for the 504 Loan and the Microloan Programs with lenders across the state. These include:

Top Performing Certified Development Companies-504 Loan Program:

Community Ventures; Lexington                                 13 loans            $  6,049,000

Purchase Area Development District; Mayfield           8 loans            $  3,955,000

Horizon Certified Development Co; Cincinnati            5 loans            $  7,070,000

Top Performing Microlenders:

Community Ventures; Lexington                                 67 loans           $     420,820

Kentucky Highlands Investment Corp.; London        31 loans           $     609,922

MACED; Berea                                                                 25 loans           $     342,523

SBA All-Star Team:

The SBA Kentucky District Office also acknowledges the individual loan officers responsible for these achievements. These loan officers were named to the SBA Kentucky All-Star Team for 2015: Jimmy Mosser, U.S. Bank, NA; Teri Conway-Lemieux, The Huntington National Bank; Becky McClennen, JPMorgan Chase Bank, NA; Bob Watson, Community Trust Bank, Inc.; Monique McFarland, MainSource Bank; Zach Spencer, Stock Yards Bank & Trust Co.; Phyllis Alcorn and Kim Bennett, Community Ventures.

The 7(a) Loan Program includes financial help for businesses with special requirements purposes and is the SBA’s most frequently used loan program for start-up and existing small businesses.

The SBA’s 504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization, such as equipment or real estate.

The Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The U.S. Small Business Administration provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

For more information on SBA loan programs, go to www.sba.gov. For additional information about the Kentucky District Office, go to www.sba.gov/ky or contact Michael Ashcraft at michael.ashcraft@sba.gov or 502-582-5971, extension 225.

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