Home > Banking Information & Regulation > Public Meeting Transcripts > PMT - Agendas August 13, 1998
Public Meeting Transcripts
Public Meeting Regarding Banc One and First Chicago
Thursday, August 13, 1998
Transcript of Panel Seventeen
15 MS. JOHNS: I thank the Federal Reserve Bank 16 for the opportunity to come and talk about this 17 pending merger. 18 I am CEO of Capital Across America and 19 also President-Elect of the National Association of 20 Women Business Owners and Board member of the 21 National Foundation for Women Business Owners. 22 And I'm here today to address Banc One's 23 investment in Capital Across America as the first 24 SBIC in the history of the Small Business 345 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Investment Corporation Program that focuses on 2 investments in women-owned businesses. 3 Capital Across America is an investment 4 fund created to provide growth capital to 5 women-owned firms who are growing their companies. 6 We are located in Tennessee, but we intend to serve 7 businesses nationwide. 8 In the beginning, however, we are limited 9 to the areas in which we have financial partners or 10 states contiguous to Tennessee. With Banc One's 11 investment in our fund, we're able to go into areas 12 in which Banc One is located. 13 So we're very excited about the 14 opportunity for this pending merger to occur so 15 that we can go into some dynamic areas, such as 16 Chicago, Detroit and Indianapolis, to name some of 17 the larger cities in this area. 18 We are -- in the SBIC program, which is 19 administered by the Small Business Administration, 20 we had to raise a minimum amount of capital in 21 order to become a licensed SBIC. 22 We were able to raise approximately 23 $7 million, but our largest investor and our first 24 institutional investor was Banc One. 346 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 And I would say they came to the table not 2 only with money, but also with resources behind 3 that money and talented people who have become 4 involved with Capital Across America. 5 Having gone through the process of trying 6 to raise money for the first fund of its kind in 7 the country, I can tell you it was rather difficult 8 in approaching the financial institutions. And 9 Banc One was a very receptive institution and was 10 the first, in my opinion, to make a significant 11 investment in the fund of our type. 12 Their $3 million investment is the 13 largest of its kind in the country in a fund that 14 focuses on women business owners that has been 15 licensed as an SBIC. 16 Banc One has a division of -- let's see, 17 it's called the Women's Entrepreneur Initiatives 18 Division, which I believe is directly responsible 19 for their interest in a fund such as ours. It's 20 through Vanessa Freytag's efforts that she became 21 aware of Capital Across America and made the bank 22 known of the opportunity to invest in us. 23 Through their community development 24 corporation and Lynn Gellermann, the bank made a 347 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 decision to make that investment. And they've 2 allowed Lynn Gellermann the opportunity to serve on 3 our Board of Directors, which is a great asset for 4 a fund such as ours. 5 Since Banc One has become involved with 6 our fund, other banks have followed suit. And I 7 think that Banc One has been a role model as far as 8 approaching the underserved market of women 9 business owners who have growing companies in this 10 country. 11 And a little bit about that, there are 12 approximately 8 million women business owners in 13 the United States, which is approximately 14 40 percent of all businesses now in this country. 15 They employ 18 and a half million people, which is 16 one out of every four U.S. workers. That's 17 35 percent more than the Fortune 500 employees 18 worldwide. 19 So women business ownership is an 20 important part of our economy and one reason why I 21 think our economic cycle has continued to remain 22 very strong in this day and age. 23 And it is very important that we continue 24 to provide growth capital to the women business 348 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 owner community so that they can continue to add 2 employees to their companies and grow their 3 companies and be community leaders within where 4 their businesses are located. 5 So this potential or pending merger is 6 very important to us in Capital Across America so 7 that we can reach more women business owners in 8 this part of the country. There's this dynamic 9 opportunity for us as the first debenture SBIC in 10 the country to focus on women business owners. So 11 thank you. 12 MS. SMITH: Thank you very much. 13 Ms. Paycheaud. 14 MS. PAYCHEAUD: You having fun with that? 15 Phonetically, it's Paysho, P-A-Y-S-H-O. It doesn't 16 look like that, but then I'm from Louisiana, so 17 everything that you see in Louisiana does not 18 always look the way it actually is. 19 And I think that that -- my name is 20 Rosalyn Paycheaud. I'm Executive Director of the 21 Neighborhood Development Foundation. 22 And the Neighborhood Development 23 Foundation is a program that was established in 24 1986 on the belief that decent, safe, affordable 349 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 housing is essential to an individual's 2 well-being. 3 And to that end, that is what we do. 4 We don't develop houses. We empower people to go 5 out and get the money that they need in order to 6 buy a house. 7 I want to tell you a little bit about 8 NDF because I think that credibility is very 9 important. 10 We were established, again, in 1986. We 11 have a pristine Board of Directors that includes 12 representatives from Banc One on our Board. We're 13 well-respected in the community. We're certified 14 housing counselling agency by HUD, by Fannie Mae, 15 by Freddie Mac, by our local lending authority. 16 We own a list of organizations to provide 17 home buyers training for our local funding 18 authority. We prepare a minimum of 150 first-time 19 home buyers each year to own their own piece of 20 New Orleans. 21 We're a 501(c)3 nonprofit organization 22 that believes that, even though we're nonprofit, we 23 ought to be able to operate like a business. We 24 are identified as a national model by the 350 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Enterprise Foundation, which was involved in our 2 establishment in 1986. 3 We think that we're good at what we do. 4 We work with our clients, we say, from the 5 beginning to the end. We provide pre-purchase 6 counselling, budget planning, a 12-hour home 7 training class. And we're a little rigid about 8 that class because you're either there 15 minutes 9 into the class and you're there when it ends or you 10 take the class over. And that's part of our 11 commitment to prepare people for home ownership. 12 We believe that education is the key. 13 And if an individual knows what's expected of them, 14 then they'll be able to achieve. We don't train 15 anyone that's not bankable to us. We can't do it 16 because you can't buy a house if you don't have 17 any money. 18 And when we were established in 1986, 19 First NBC, who now Banc One owns, or First NBC 20 is -- and Banc One, in my mind, are one. They were 21 pioneers for us. And we don't anticipate any 22 change in that. 23 First NBC put money in an affordable 24 marketing pool that our clients were able to access 351 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 when no one else did that. 2 So, you know, we're looking forward to 3 change. We're not intimidated by change. We 4 welcome the opportunity to have products that 5 Banc One is bringing into our state. 6 One of the things that I've learned today 7 in this room is that there's a lot of fear and a 8 lot of resistance to change. And a lot of it has 9 to do with the misinformation and the fact that 10 people don't really understand what's going on 11 with them. 12 We needed to have Banc -- we need to have 13 Banc One involved in what we do because we can't do 14 it without having financial support. We're used to 15 having the kind of technical assistance that we 16 need and expertise that we need in order for our 17 organization to continue doing what we do. 18 We need the resources as well. Our 19 clients need to have access to affordable housing 20 dollars. We also prepare them to recognize when 21 they're being discriminated against. It's a part 22 of our training. 23 Everyone that's involved in that mortgage 24 process comes to our class and teaches a segment of 352 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 that class, so that when our clients go into any 2 bank looking for a loan, they know what -- they're 3 prepared when they go in. And they know when an 4 insurance company is red-lining them and they know 5 when they're being discriminated against and they 6 know we'll be there for them. 7 So I'm here today to let you know that we 8 work with Banc One. We look forward to continuing 9 to work with Banc One and encourage you to, like, 10 do what you do in terms of monitoring the process. 11 And this open forum is very important, 12 but look at it for what it is, because not 13 everyone has had the same type of experience that 14 I've heard described in this room today. Thank you 15 very much. 16 Oh, one more thing. I brought you 17 some visuals because I'm a visual person. We do 18 an annual fund-raiser every year. And I'm in 19 Chicago, okay? This is Mike Ditka in an issue. I 20 have Banc One on here. I have the clergy. I have 21 Fannie Mae, Freddy Mac. I have Arial Lenders. I 22 have my clients. 23 That's what it's about, building 24 coalitions. And that's what Banc One does for the 353 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 community. These are yours. 2 MS. SMITH: Thank you very much. 3 Mr. Pritscher. 4 MR. PRITSCHER: Thank you, and thank you. 5 Hello. I'm John Pritscher, the President 6 of Community Investment Corporation in Chicago. 7 Like I know other people travelled long distances, 8 it took me about a two-minute walk, and for which I 9 am very grateful. 10 I'm here, though -- I would have gone long 11 distances, though, to support this merger because 12 of my experience, predominantly with First Chicago 13 NBD, but also in a lesser way with NBD because 14 they're not as big in Chicago. 15 The Community Investment Corporation is a 16 not-for-profit mortgage lender. We're the largest 17 multifamily rehab lender in Chicago. This year 18 we'll do about 45 to $50 million in multi-family 19 rehab loans, about 85 or 90 loans with about 20 over 2,000 apartment units. So we're a good-sized 21 lender. 22 I've been with them for 14 years. We were 23 founded by the banking community to make sure that 24 funds were accessible in all parts of the city. 354 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 And we've really come a long way, thanks, 2 in part, to the Community Reinvestment Act, thanks 3 also to the fact that I think banks have gotten 4 religioned by being involved with neighborhoods and 5 communities and seeing that it's a profit center 6 and that it works, that it's good business, and 7 that they can't let their cities go to hell around 8 them and still have a good source. That's been my 9 experience in Chicago, at least. 10 In today's world of bank mergers, the real 11 world we're in, I think it's very important that in 12 strengthening the Midwest that this merger move 13 forward and that First Chicago and NBD stay and be 14 controlled as a Midwest entity. 15 First Chicago is extraordinarily important 16 to Chicago. And they're the largest bank. I could 17 perhaps give some -- an example of the role they've 18 played with Community Investment Corporation. 19 We have a 525 million revolving loan pool 20 that we were happily in this very room on July 8th 21 celebrating the fact that this pool was extended 22 from the year 2000 to the year 2010 and that a 23 hundred million of this pool was set aside to do 24 loans that nobody else could do. 355 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 And I'll go into that briefly, but that a 2 pool risk lender that specialized in apartment 3 rehab lending could sensibly do and that maybe an 4 individual bank might not be able to do. 5 CIC was encouraged by First Chicago to 6 move forward and to take this step to do loans that 7 nobody else could possibly do, plus to extend the 8 pool through 2010 with the same revolving basis so 9 that, in fact, we'll have, like, close to a billion 10 dollars lent by the end of that period because the 11 money revolves. As we pay it back -- someone pays 12 back a loan, it's as if the loan was never made and 13 we can use it again. 14 When we work -- we've worked with First 15 Chicago NBD and Banc One over these 14 years that I 16 have been with them. And we worked with 17 predecessor banks that were absorbed, if you will, 18 by the merger process. 19 And First Chicago has -- and NBD both, but 20 especially First Chicago in Chicago, has always 21 taken on and accepted the responsibilities of 22 American National, Gary Wheaton, NBD, you know, all 23 of the others that have come on. 24 And we asked -- the only thing that we 356 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 asked of NBD was that they had only a $1 million 2 commitment, where we have $120 million through the 3 First Chicago entities, that they extend this. 4 They volunteered a loan committee member. 5 And they've both been active in that. 6 They're also -- when we started to look at what we 7 can do to beat MMBs (phonetic), First Chicago 8 shared the information of what they were doing in 9 their own neighborhood lending program. 10 They were doing -- they are doing -- 11 they do aggressive lending. They've worked in 12 partnership with us as aggressive lenders over 13 the years. 14 And I think that if the merger doesn't 15 take place, I'm fearful that some other type of a 16 merger will take place without the Midwest control, 17 without the local commitment that both -- that 18 First -- certainly that First Chicago has shown in 19 the Chicago Metropolitan area. 20 MS. SMITH: Thank you very much. We'll go to 21 Mr. Roberts. 22 MR. ROBERTS: Thank you for the opportunity to 23 be here today to speak in favor of this merger. My 24 name is John Roberts. I am president of Mezzanine 357 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Capital Management, which is the administrator of 2 the Ohio Mezzanine Fund. 3 The Ohio Mezzanine Fund is a multi-bank 4 community development corporation organized and 5 funded in February of 1996. 6 The fund was organized and is owned by 7 eight Ohio banks, who invested nearly $10 million 8 for the purpose of providing creative and flexible 9 financing that otherwise would not be available to 10 small and mid-sized businesses. 11 This financing is provided in the form of 12 subordinated debt in amounts from $100,000 up to 13 $750,000, again to small and mid-sized businesses 14 who are young and growing rapidly, but which are 15 not yet fully bankable. 16 While equity in mezzanine debt sources are 17 plentiful for large companies that need $1 million 18 or more, there are very few organized sources for 19 this type of risk capital under $1 million for 20 small businesses. This is a niche on which the 21 Ohio Mezzanine Fund focuses. 22 The Ohio Mezzanine Fund is unique in 23 that the fund is actively managed by its investor 24 banks at the board of managers and investment 358 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 committee levels. 2 In addition, the Fund relies on referrals 3 for investment opportunities from the investor 4 banks and each investment that the fund makes in a 5 smaller mid-sized business must be matched at least 6 dollar for dollar by a new senior loan from one of 7 the investor banks. 8 This allows the Fund and each of its 9 investor banks to form a unique partnership to 10 provide complete financing packages which otherwise 11 would not be available to small and mid-sized 12 businesses. 13 To date, in a little over two years, the 14 Ohio Mezzanine Fund has invested over $5.5 million 15 in 11 Ohio businesses. This investment has 16 leveraged over $15 million of senior bank financing 17 from the Fund's investment banks. 18 That financing would not have been 19 available to those 11 businesses without the 20 participation of the Ohio Mezzanine Fund. 21 This financing has made possible the 22 expansion of these businesses, which has led to job 23 growth and other economic benefits for the Ohio 24 communities where they are located. 359 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Also in its first two years, the Fund has 2 enjoyed several success stories in the form of 3 three businesses that have improved their operating 4 and financial track records to the point that 5 their bank has increased its financing with the 6 business to allow the business to prepay the Ohio 7 Mezzanine Fund and become fully bank financed at a 8 lower cost. 9 This partnership between banks and the 10 multi-bank community development corporation format 11 is important in delivering flexible higher-risk 12 capital that otherwise would not be available to 13 small and mid-sized businesses in Ohio. 14 From the beginning, Banc One has been an 15 active and supportive partner and has taken the 16 leadership role in the formation and operation of 17 the Fund. Banc One was the first bank to verbally 18 commit to providing capital to the Fund and 19 subsequently invested $1.75 million in the form of 20 $250,000 of equity and a $1,500,000 line of 21 credit. 22 In addition, Banc One hosted several 23 organizational meetings in which other banks in 24 Ohio were invited to attend and considered 360 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 investing in the Fund. Banc One personnel also 2 talked with other bank decision-makers to influence 3 their involvement in the Fund. 4 Once the Fund was organized, Banc One 5 again assumed the leadership role by providing 6 senior level management to serve on the Board of 7 Managers and on the investment committee. 8 For example, the initial representatives 9 from Banc One to the Board of Managers and the 10 investment committee were an executive vice 11 president and senior vice president respectively. 12 Their management and credit experience has been 13 instrumental in the Fund's success to date. 14 Banc One has also played an important role 15 in sponsoring investment opportunities to the Ohio 16 Mezzanine Fund. 17 Banc One lenders have referred many deals 18 over the Fund's two-year period and Banc One has 19 provided senior financing along with subordinate 20 financing from the fund in two deals totaling over 21 $5.8 million. 22 In April of this year, the Fund's Board of 23 Managers determined that the Fund was working very 24 well and should expand its territory to include the 361 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Columbus, Ohio, market area. 2 Banc One assumed a leadership role in 3 assisting the Fund's personnel in making contacts 4 within the financial and small business community 5 in the Columbus area and Banc One also facilitated 6 communication within the bank with its lenders and 7 the Fund's personnel and issued a press release 8 introducing the Fund and advocating the Fund to the 9 Columbus area. 10 In summary, the Ohio Mezzanine Fund and 11 its $10 million of risk capital pool available to 12 small and mid-sized businesses in Ohio would not 13 exist today had it not been for the support and 14 leadership of Banc One. 15 We have every reason to believe that 16 that support and leadership will continue in the 17 future. Thank you. 18 MS. SMITH: Thank you very much. Mr. Traylor. 19 MR. TRAYLOR: Ms. Williams, Mr. Alvarez, 20 Ms. Smith, thanks very much for allowing me to be 21 here today to share the story of the Southern 22 Indiana Rural Development Project and the 23 partnership -- the strong partnership that we've 24 developed with Banc One over the past five years. 362 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 The Southern Indiana Rural Development 2 Project or SIRDP is a not-for-profit organization, 3 501(c)3 organization that represents the 34 4 counties of southern Indiana. 5 We primarily focus our efforts in 6 southern Indiana on rural communities. And we seek 7 to basically improve the economies of those rural 8 communities through a number of different 9 mechanisms. 10 We were originally set up through an 11 initiative by Congressman Lee Hamilton in response 12 to a study by the Hudson Institute, a think tank in 13 Indianapolis, which basically had done a study on 14 rural communities and came back with the report 15 that primarily focused on all the bad things. 16 If you were to read the report, you would 17 look at yourself. And if you were living in 18 southern Indiana, you were wondering what the heck 19 you were doing there. And if you weren't living 20 there, you would certainly say I'm never going to 21 live there. 22 It was a very negative report. And the 23 Congressman did come back to us to form this group 24 to basically try to come up with action plans that 363 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 address some of those negative aspects and at the 2 same time which tries to highlight some of the 3 positive things, which there's certainly plenty of 4 them in southern Indiana. 5 SIRDP accomplishes its mission through a 6 series of task forces, all of which are focused on 7 a particular issue ranging from telecommunications 8 and technology to leadership development to 9 education work force development as well as 10 housing. 11 It was through the housing task force that 12 I had my first working relationship with Banc One. 13 Early in 1996, SIRDP's Board of Directors was 14 trying to figure out a way to diversify our Board 15 and to bring in a lot of different membership 16 representing various factions, which we currently 17 at that time did not have representation from. 18 The financial institution was one that 19 was very lacking. And at that time the community 20 affairs director from the Fed out of St. Louis, 21 the Louisville branch, came to us with some 22 recommendations as to some firms, some financial 23 institutions that we might want to bring on board. 24 One of those firms was Banc One. And to 364 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 this date, Banc One and PNC have maintained a very 2 strong involvement with our organization, while 3 several of the other organizations -- many of them 4 were smaller, but some of them were quite large 5 institutions -- have fallen to the wayside and have 6 not maintained that involvement. 7 And we certainly appreciate Banc One's 8 willingness to get involved from the onset and 9 since then to basically jump in on a number of 10 different issues that we've been focusing on in the 11 area of housing. 12 Banc One continues to this day to work 13 diligently with our task force, our housing task 14 force, to set housing need priorities for southern 15 Indiana. 16 Banc One has also supported SIRDP in a 17 financial manner as well. Through their 18 contributions, we've been able to leverage funds 19 from the Indiana Department of Commerce, the 20 Indiana Housing Finance Authority, Indiana 21 Department of Environmental Management and also 22 from the local endowment out of Indianapolis. 23 Quite honestly, without Banc One's support 24 and other organizations like them, our organization 365 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 would not exist. As a not-for-profit, we rely upon 2 private contributions to maintain our existence. 3 And they've been very supportive of that. 4 Wow, time up, one minute already. One of 5 the most important initiatives that we focused on 6 over the past year is a program which is a home 7 buyer education assistance program. 8 It's called Live The Dream, Own A Home. 9 We've just created this. Banc One and their 10 representatives have been very involved with our -- 11 with helping us to create the program, which is 12 modeled after a program in the state of Kentucky. 13 And without their assistance, we would not have 14 been able to do this. 15 This is a program that the Indiana Housing 16 Finance Authority has also adopted and which is 17 supported by organizations, community housing 18 development organizations, CDCs, community groups 19 and a number of different groups all over the state 20 of Indiana, not just within southern Indiana. 21 And we appreciate Banc One's assistance in that 22 respect. 23 We thank them for their willingness to 24 assist us and we support them in their endeavors in 366 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 this respect as well. Thank you. 2 MS. SMITH: Thank you very much. 3 Mr. Wilkinson, thank you especially for 4 taking this later time and giving up your slot 5 earlier. 6 MS. WILKINS: No problem. 7 Good afternoon or, as the case will soon 8 be, good evening. My name is Tony Wilkinson. I am 9 the president and CEO of the National Association 10 of Government Guaranteed Lenders, Inc. And I like 11 to use our shorter name, which is NAGGL. It sure 12 is a lot easier. 13 We are headquartered in Stillwater, 14 Oklahoma. NAGGL represents those members of the 15 lending community who are active participants in 16 the Small Business Administration's 7(a) loan 17 program. 18 And during the last fiscal year, our 19 membership accounted for approximately 80 percent 20 of all of the SBA 7(a) loans made. 21 I appreciate the opportunity to appear 22 before you today and discuss Banc One's 23 participation in the SBA 7(a) loan program and with 24 our association. 367 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 For the last few years, I have had the 2 privilege of working with Brian Burke, the national 3 SBA program manager for Banc One, and with other 4 Banc One representatives across the country. 5 Mr. Burke currently serves on the NAGGL 6 board of directors as our corporate secretary and, 7 as such, is a member of the NAGGL executive 8 committee. 9 I applaud the commitment Banc One has 10 made to SBA lending programs. In particular in 11 the 7(a) program, the bank has taken a leadership 12 role in two specific areas that I'd like to talk 13 about today. 14 First, Banc One was one of the limited 15 number of institutions chosen by SBA to pilot the 16 Fast Track loan program, a loan program 17 specifically designed to make smaller-sized loans. 18 That program has deemed to be highly -- was deemed 19 highly successful by the SBA. And the agency is 20 now in the process of expanding that program. 21 Banc One representatives have been 22 actively involved in the discussions with the SBA 23 on how to expand the Fast Track program and do so 24 in an efficient and responsible manner. 368 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Banc One has also been actively involved 2 in the special NAGGL committee, our task force on 3 lending to the underserved. This committee has 4 worked diligently with the SBA over the last 5 several months. 6 And we have come to a conclusion that 7 there are a number of markets with underserved 8 financing needs. These markets would include 9 businesses that; A, are owned by African Americans, 10 Hispanic Americans, Asian Americans, Native 11 Americans, other minority groups, women, veterans 12 or handicapped individuals; B, those small 13 businesses that need financing for exporting; or, 14 C, are located in distressed urban and rural 15 areas. 16 An announcement on both the Fast Track 17 expansion and initiatives to increase the lending 18 to the underserved markets is tentatively scheduled 19 for September, so unfortunately I cannot go into 20 greater detail just yet, but let me reiterate that 21 Banc One representatives have played a major role 22 in development of both the Fast Track and 23 underserved lending initiatives. 24 Regarding post-merger SBA lending 369 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 activity, Banc One's track record has been to turn 2 less than active SBA lending operations into higher 3 volume operations. 4 For instance, Banc One has taken recently 5 an Arizona bank's SBA lending operation which was 6 nowhere to be found in the top ten in lending 7 volume in the state to the number one SBA bank 8 lender in that state. 9 So in conclusion, Banc One has been a 10 valuable participant in the 7(a) loan program. 11 Banc One is also a valuable member of our 12 association. And Mr. Burke is held in high regard 13 amongst the NAGGL leadership and membership. 14 Banc One has made a long-term commitment 15 to the program and they have shown how to be 16 innovative with the SBA loan product. 17 Even at a time when SBA loan volume was 18 down nationally due to the nature of direct bank 19 lending, Banc One still aggressively participates 20 in SBA and NAGGL programs and activities. 21 I believe that in the markets where Banc 22 One operates, small businesses can expect to find a 23 professional committed SBA 7(a) lender ready to 24 help meet their long-term financing needs. 370 McCORKLE COURT REPORTERS, INC. CHICAGO, ILLINOIS - (312) 263-0052 1 Thank you for the opportunity to comment 2 today. 3 MS. SMITH: Thank you very much. Any 4 questions? We thank you again. 5 MR. ALVAREZ: Thank you very much for coming. 6 MS. SMITH: And look forward to your submitting 7 any written -- any additional comments by next 8 Thursday, the sooner the better. 9 And we're ready for Panel 18. We'll start 10 with Mr. Goldstein.
Last update: December 3, 2010