BOISE, Idaho; Nov. 4, 2013 — Zions First National Bank was the top provider of U.S. Small Business Administration (SBA) 7(a) loans in the Boise District in 2013, marking its twelfth consecutive year as the No. 1 SBA lender in Southern and Eastern Idaho. As Idaho’s third largest financial institution ranked by deposits, the announcement reinforces the bank’s growing presence in the state (Source: FDIC).
Zions Bank approved 96 SBA 7(a) loans in the Boise District, totaling more than $11.7 million and representing 30 percent of the 317 SBA-backed loans approved during fiscal year ended 2013. In Northern Idaho, Zions Bank also approved 16 loans in the SBA’s Seattle/Spokane District.
The capital provided through Zions Bank’s loans to Idaho businesses allowed them to grow so that they could hire 183 new employees and retain 408 positions, according to SBA data.
Capital provided by Zions Bank to small businesses like Primary Weapons Systems of Boise is helping the Idaho economy during a time of sluggish economic recovery. Primary Weapons, a federally licensed firearms manufacturer, is using an SBA 7(a) guaranty loan from Zions Bank to purchase equipment to support its continued expansion, which is expected to create 10 new jobs.
Because they create jobs, small businesses like Primary Weapons Systems are key drivers of the economy, according to Scott Anderson, Zions Bank president and CEO. “Roughly 97 percent of companies in Idaho qualify as small businesses, and we know they help fuel our economic growth because they are the principal source of new jobs,” Anderson said. “As the state’s top SBA lender for the past 12 years, Zions Bank is proud to be part of the economic solution by offering support and expertise to entrepreneurs.”
Zions Bank also is a leader in marketing SBA loans to women-owned businesses and new startups. During fiscal year 2013, 52 percent of the SBA loans approved by Zions Bank were to women and minorities, and 36 percent were made to new businesses.
SBA 7(a) loans are the most basic and most used type of loan in SBA’s business programs. The program offers up to 25-year, fully amortized loans that result in lower monthly payments for the borrower. Proceeds from the 7(a) program may be used for most business purposes, including the purchase of real estate for business operations, acquisition of equipment, and working capital. On Oct. 1, the SBA announced a reduction in the annual service fee for all 7(a) loans in fiscal year 2014 and a reduction in the up front guaranty fee for all 7(a) loans in the amount of $150,000 or less. These reduced fees allow borrowers to retain more of their funds for operating capital.
About Zions Bank
Zions Bank, a subsidiary of Zions Bancorporation (NASDAQ: ZION), is Utah’s oldest financial institution and operates 124 full-service financial centers in Utah, Idaho and Jackson, Wyoming. In addition to offering a wide range of traditional banking services, Zions Bank is also a leader in small business lending and has consistently ranked as the No. 1 lender of U.S. Small Business Administration 7(a) loans in Utah for the past 22 years and Idaho’s Boise District for the past 14 years. Founded in 1873, Zions Bank has been serving the communities of the Intermountain West for more than 140 years. Additional information is available at www.zionsbank.com.