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Executive
Roundtable
As part of our special feature on small business banking,
Publisher Doug Forshey interviewed executives at leading
banks in Virginia to find out what they are seeing in
the small-business market.
Related
links:
- Bank of America - Jim McAlister
-
BB&T - Ray Barnes
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SunTrust Bank - Kathy Meunier
Wachovia
John
Eagan
Business Bank Executive
Mid-Atlantic Region
“Wachovia
defines the small business market as companies with
revenues in the $1 - $15 million range. Currently we’re
experiencing low double-digit growth in the small business
loan segment that has remained moderate over the past
several months. The good news is that we expect no specific
trouble spots in the market and, with our business pipeline
picking up, we are fairly optimistic for the remainder
of 2003. Many of our core customers in the wholesale,
retail and manufacturing sector have greatly benefited
from low interest rates. These historically low rates
are giving many businesses cheaper access to capital,
which allows them to reinvest in their businesses.
“Another factor we are seeing is how the weather
has affected small businesses. The unusually cold winter
and a very wet spring depressed the retail and construction
industries. Now that things have dried out we’re
observing a lot of growth in these two sectors.
“I
would like to mention Wachovia’s approach to the
small business market. We have devoted significant resources
to this segment, through specialized training of our
bankers and products specifically developed for the
market. We have also segmented the market into three
distinct groups to better serve our customers. One group
of approximately 45 dedicated professionals in Virginia,
Washington, D.C., and Maryland serve customers in the
range of $3 million to $15 million in revenue. In some
of the more non-metro markets, customers are served
through community bankers. For businesses in the $0
- $3 million ranges, we have a separate staff of small
business bankers plus our extensive branch network to
handle customer needs. This segmented approach is very
strategic and helps us better serve each individual
market segment. And along with serving their business
needs, each Wachovia representative partners with other
Wachovia professionals to handle their personal banking
needs as well. It’s the cornerstone of our relationship.
It’s providing a single point of contact that can
access a range of specialized professionals at Wachovia
to serve your needs.
“Wachovia
is an avid provider of Small Business Administration
products, many with capabilities unique to the market.
One component of our portfolio is a 7(a) product that
we developed in response to a need in the market —
a fixed-rate SBA loan with a low interest rate. This
new option offers small businesses all the flexible
benefits of an SBA 7(a) loan — low down payments,
low monthly payments, no balloon payments — with
the ability to fix the interest rate for the initial
three, five or seven years on loans that involve owner-user
real estate. It offers as little as 10 percent down
and up to 25-year terms.
“At
the present time Wachovia is serving the Virginia market
with approximately 340 branches, with 80 in the central
region, 80 in the western region, 60 in the eastern
region and about 120 in the greater Washington, D.C.,
region, which includes the District.”
Return
to Virginia Business - September 2003
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