For ENT650 we had to interivew someone in the financial business. I chose Becky Girard. She’s the Vice President, small Business Banking Officer at Hometrust Bank.
1. Tell me a little bit about yourself.
Native of Buncombe County – fifth generation Attended TC Roberson HS and AB Tech. Volunteer with MANNA, Salvation Army, and Honor Air Flights
Two adult children and grandmother to two young girls.
I’ve been in retail and commercial banking for 37 years. Beginning my career on the retail side of a Savings and Loan worked for the company for 22 years, opportunity presented itself to work for one of the large corporate banks. In working for the Corporate bank, I transitioned to the commercial / business side – working with business with $5 – $10mm in revenue or less – I’ve remained in the commercial / business side since 2003.
2. What does your typical day look like?
Every day is different – that’s what makes the position so interesting. Usually, I’m scheduling appointments one to two weeks in advance. On average spending 50% out of the office calling on prospects and existing clients. With the prospects you’re attempting to earn their business and with existing clients expanding their relationship. There are lots of emails, phone calls, texting any and all types of communication.
Once a prospect is committed to HomeTrust Bank to move forward with a loan request financials are collected on the borrower and guarantors, the structure is discussed with the borrower and sometimes discussed again until a mutual agreement is made. Should the loan be a line of credit or a term loan, what’s the collateral, is the request seasonal, what’s the purpose? It’s not a one size fits all.
A credit memo is required with all loans, giving the particulars on the borrower, what type of
Business and its history, is there a special niche in the market place, what customers do they serve, what’s the purpose of the request, etc. Next step is to analyze the financials – can they afford to borrow the money requested.
Once approved, different folks are engaged to assist with closing the loans – appraisers, attorney’s office, insurance offices, title insurance, etc. The Business officer is part of the process each step.
Existing clients – make certain the loans are paid as agreed, keep up with the past dues and contact the client. Renewal of existing loans – collect financials, spend time with the client – what’s needed currently, what’s the plan for the next five or ten years. They may have a strategy to expand, relocate or retire. They banker needs to be part of the process along with accountant and lawyer.
3. Tell me about your background as a small business lender at HomeTrust Bank and any prior experience you have had as a lender. See question one
4. What are the main items a lender is looking for when a small business owner comes and applies for a loan?
We look at several items
Experience – is this a startup or do we have at least two years of good performance from the borrower. If the request is for a startup – referrals are made to folks that lend to startups
Credit – what does the guarantor’s credit look like; excellent scores or items that need to be explained
Purpose – what’s the money going to be used for
Collateral – what’s value of the collateral, do we want the collateral, what’s the useful life of the collateral etc. The bank doesn’t want to lend for ten years on a piece of equipment which has a useful life of five years.
Financials – tax returns, personal financial statements, debt schedules, does the borrower have the ability to pay back the loan requested
Does the loan / request make sense? A three-year term loan to a brewery to purchase equipment – yes makes sense.
5. What advice do you have for a small business owner?
Be passionate with your business, love what you do; if you don’t love it don’t do it. As the owner you’re responsible for not only yourself but your employees and their families. Their livelihood depends on you. You are the person signing the front of the checks. It’s easy to change jobs, it’s not easy to change owners.
Keep good records or hire someone to keep good records, you may be a great artist but can’t manage your business – to be successful the owner must wear multiple hats. Always Always Always know where the cash is coming from and even more importantly know where it’s going. ( this prevents fraud, embezzlement and going out of business)
6. How is North Carolina’s lending climate over the past 3 years for small business owners?
I’m seeing more business owners looking for owner occupied property – where they’ve been leasing before. In the last six to eight months more investment property being purchased – such as investment homes; with the affordable housing shortage in WNC these are attractive.
7. Tell me a little about SBA 504 lending and what you do to help small business owners approved for the SBA loans.
HomeTrust Bank participates in the SBA 504 lending – same financials and information required as a conventional loan; however, the lower down payment and the ability to finance some of the closing costs with the loan is the attractive part of SBA lending. In the initial conversations with the borrower the matter of down payment is discussed. If down payment or closing costs are a possible challenge, that’s the time to introduce SBA.
8. What book/novel has had the biggest impact on your life? And why
The Bible – the answers to all questions are there – you only need to look and learn.
