West Valley National Bank offers affordable loan programs to Local First Arizona members

wvnb Community Banks throughout the US control less than 14% of market share but provide 45% of the small business loans in the country. Currently there are 28 community banks in Arizona with fewer 20 true stand alone banks who make decisions locally. In Arizona the top three banks control almost 70% of market share with the locally owned community banks controlling less than 2%. Therefore they largely control the types of lending and velocity of capital in our market. Arizona is also a small business state and helps to diversify our economy. Because of this phenomena, the Arizona economy is much more vulnerable in an economic downturn than states such as Georgia with over 400 community banks who continue to provide capital for small business even in down turns.

West Valley National Bank can provide resources to support small businesses including capital, expertise, and a network for other services. They also recognize the important role of Local First Arizona and desire to contribute to the strength and resources of the organization. Therefore this program was developed to benefit both the members and Local First Arizona. Check out these amazing loan programs that West Valley National Bank has put together exclusively for Local First Arizona members! 

To take advantage of any of these incredible programs, contact your nearest West Valley National Bank branch and let them know that you are a member of Local First Arizona! 

SBA 504 LOANS

The SBA 504 loan program is an exceptional product for small business owners who wish to purchase their own building. The benefits of this product include:

    • 10% down payments.
    • 20 year fixed rate financing on 40% of the loan amount.
    • This product is appropriate for loans up to $3,000,000.
    • Minimum Credit Score of 675.
    • Borrowers must exhibit $1.25 in recurring income for every $1.00 of debt on their balance sheet. 

WVNB provides a loan for a 50% first trust deed and the SBA funds a debenture equal to 40% of the total amount secured by a second trust deed.

WVNB agrees to reduce their current market interest rates on their first trust deed loans as follows: 

  • Loans of $100,000 to $500,000 will qualify for a .25 basis point rate reduction for up to five years provided the borrower continues to be a member of Local First Arizona. The cost savings to a member requesting a $500,000 loan equates to a benefit of $6,250.00 over five years.
  • Loans of $501,000 to $1,000,000 will qualify for a .35 basis point rate reduction for up to five years provided the borrower continues to be a member in good standing of Local First Arizona. The cost savings to a member requesting a $1,000,000 loan equates to a benefit of $17,500 over five years.
  • Loans in excess of $1,000,001 to $1,500,000 will qualify for a .50 basis point rate reduction for up to five years for Local First Arizona members in good standing. The cost savings to a member requesting a $1,500,000 loan equates to a benefit of $37,500.00 over five years.

SBA 7A LOANS

The SBA 7A loan program provides financing for equipment, tenant improvements, inventory, permanent working capital and expansion or acquisition. The benefits of this product include:

    • 10 year term and amortization.
    • 10% down payments in most cases.
    • Rates can be fixed or floating tied to Wall Street Journal Prime.
    • This product is appropriate for loans from $100,000 to $2,000,000.
    • Minimum Credit Score of 675.
    • Borrowers must exhibit $1.25 in recurring income for every $1.00 of debt on their balance sheet.

WVNB receives up to a 75% guaranty on the loan from the SBA.

SBA 7A loan pricing is mandated by the SBA. However, the Bank agrees to reduce the WVNB loan origination fees as follows:

  • For loans of $100,000 to $500,000 the Bank will offer Local First members in good standing a reduced loan fee of .50% as opposed to the customary 1% loan origination fee. This would result in a $2,500 savings for a member requesting a $500,000 loan.
  • For loans of $500,001 to $750,000 the Bank will offer Local First members in good standing a reduced loan fee of .35% loan fee as opposed to the customary 1% loan origination fee. This would result in a $4,875.00 savings for a member requesting a $750,000 loan. 
  • For loans in excess of $751,000 the Bank will waive its customary 1% loan origination fee for Local First members in good standing. This would result in a $15,000.00 savings for a member requesting a $1,500,000 loan.

REMOTE DEPOSIT CAPTURE MACHINES / ONLINE BANKING

The use of a remote deposit machine and our online banking product offers our clients an efficient and safe way to deposit their funds. The benefits include:

    • Real time account information.
    • Checks are deposited onsite so trips to the Bank are no longer necessary.
    • This product reduces the chance of employer fraud since the signors on the account can restrict access to funds.

WVNB agrees to waive the cost of online banking and remote deposit capture machines and use for one year. The RDC total annual cost savings is $1200 ($50 monthly scanner fee and $50 monthly service fee) for Local First Arizona members in good standing.

FREE CHECKING

Local First members are eligible for two free checking accounts with no minimum balance and no monthly fee. Other service charges may apply. See our schedule of fees for details.