WATERBURY, Conn., Oct. 19, 2009 – For the second consecutive year, Webster Bank, National Association, a subsidiary of Webster Financial Corporation (NYSE: WBS), has been named Connecticut’s number one U.S. Small Business Association (SBA) lender.
For the 2008-2009 fiscal year, Webster made 79 SBA loans valued at $15 million, making it the state’s top SBA lender both in terms total loans and total dollar value. For the eighth straight year, Webster was the state’s top SBA 504 lender, and it was also Connecticut’s number one lender for the SBA’s new America’s Recovery Capital (ARC) Loan Program.
“SBA loan programs are great tools for strengthening and expanding business relationships,” said Ginger Siegel, Webster’s senior vice president, Business and Professional Banking. “The SBA allows us to provide for the credit needs of a wide variety of small business customers and prospect and is especially valuable in today’s economic climate.”
Webster’s SBA loans were made to a variety of small businesses from sole proprietorships to manufacturers, retailers and wholesalers.
“During difficult times when many businesses were struggling to make ends meet and obtain financing, we recognize that Webster’s commitment to SBA lending is just one indication of a greater commitment to small business,” said Bernard M. Sweeney, SBA District Director.
The SBA 504 program is targeted at borrowers who want to acquire real estate and fixed assets with as little as 10 percent investment. The ARC program was created in 2008 as a temporary measure to provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.
“The ARC loan product is specifically designed to help businesses impacted by economic adversities – and once again, Webster Bank led the way using the newest SBA product,” Sweeney added. “These can be challenging loans; we appreciate Webster’s extra effort to tackle this loan product for the benefit of the bank’s customers.”
Webster’s SBA volume was down from last year when it made 111 SBA loans valued at $23.8 million. Bob Polito, Webster’s director of SBA & Government Guaranteed Lending, attributed it to less demand for business loans because of the economic downturn. The difficult economy is also why Webster chose to take part in the new ARC Loan Program. “We’re one of the few lenders in the state to take part in the ARC program and we felt it was important to help our customers by offering the entire range of SBA products,” Polito said. “We encouraged anyone who had a need to apply. Our doors are wide open.”
Webster’s portfolio of SBA loans totals $120 million in total commitments and accounts for more than 12 percent of Webster’s Business and Professional Banking loan portfolio.
Webster Bank was one of only two banks in the nation to earn the SBA’s 2007 National Excellence in Lending Award for its outstanding overall record with SBA loans. Webster was also named the state’s top SBA Patriot Express lender in 2007, a program that provides eligible military veterans preferential pricing terms on SBA guaranteed loans.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.5 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 492 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Conn., and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websteronline.com.
Media Contact:
Ed Steadham, 203-578-2287
esteadham@websterbank.com
Investor Contact:
Terry Mangan, 203-578-2318
tmangan@websterbank.com