Liberty Bank ranks first seven years running

Being the U.S. Small Business Administration’s No. 1 producer of small-business loans in southwest Missouri for seven straight years is no accident, according to Mike Mattson, senior vice president of commercial loans at Liberty Bank.
“It’s what the bank started with and that’s to provide services to small and medium businesses,” he said.
In 2002, Liberty Bank reported $7.1 million in local SBA loans, followed by $13 million in 2003. In year-end figures released by the U.S. Small Business Administration for 2004, Liberty Bank again ranked as southwest Missouri’s top producer of small-business loans, totaling $20,747,000. SBA reported that Liberty Bank produced four times more small-business loans than any other area bank. One of every five SBA loans made in the Ozarks in 2004 was made at Liberty Bank, and small-business loans amount to about 10 percent of Liberty Bank’s entire loan portfolio.
Liberty Bank president and CEO Gary E. Metzger said that 82 businesses benefited and 825 new jobs were added as a result of loans made in 2004.
Mattson said the bank is on track to equal or succeed its 2004 figures in 2005.
In its 10 years of existence, Liberty Bank has experienced rapid growth, with nine locations in Springfield along with facilities in Ozark, Marshfield, Mount Vernon, Greenfield, Stockton and El Dorado Springs. It’s the small-business loans that have fed that growth, Mattson said.
“Not only are customers taking business loans out with us, they also take out consumer, mortgage, car and home loans as well,” he said. “It becomes a relationship. We look at it as not just having one transaction with a customer. We look at their overall financial picture and offer them assistance.”
Last year, Antonio Serrano took out an SBA loan at Liberty Bank to purchase Assist-to-Sell, a franchise real estate company.
“We do everything that a realty company does. The only difference between us and (other real estate companies) is that our commission is less. We save the customer money and work on a team concept. Any agent can sell any home,” Serrano said. “Liberty helped me get the SBA loan. I went to them with the help of my CPA, who put the transaction together for me. He had partnered with other clients to get SBA loans there. We presented our plan and they loaned me the money to buy the company,” said Serrano, who added that he also has other business with Liberty Bank, including his personal account, mortgages and car loans.
Small businesses normally find Liberty Bank through a referral from their CPA, as SBA cannot refer businesses to Liberty Bank.
“We can not show preference in any way to one bank over the other,” said Janice Bowman, economic development specialist at SBA. “What we do is tell the potential client that any bank can participate with SBA. They should approach their bank they are used to working with and are acquainted with them. If they just have a checking account somewhere and/or want to change, we inquire as to where in southwest Missouri they are located and suggest those banks in their area. Then, if they cannot find a lender willing to work with them, we suggest that they come to Springfield and visit with the bigger banks. If we are asked who makes the most SBA loans, we tell them Liberty is our most active, but if not questioned, I tell them any of the major banks – Empire, Commerce, Liberty, etc., in no particular order.”
Mattson said that Liberty Bank’s job is made easier due to the assistance of the local SBA office. “They’re customer-friendly to the lenders in the area,” he said. “The government offers a guarantee of 75 percent of the loan amount to the bank, so that, for example, with a $100,000 loan, they guarantee $75,000. It adds some flexibility in the repayment terms and allows for a lesser collateral position than another bank might take,” he said.
To make the system user-friendly, business owners can log on and find all the information and applications necessary. “They can send that information to their accountant to prepare the financial projections,” Mattson said. “We can help them with the paperwork requirements and help them organize. We understand the program and we’re knowledgeable of the ins and outs of it and can help those who don’t understand it.”
In the last year, Bowman said SBA’s Springfield branch office had a 21 percent increase in loan approvals.
“All indications show this year they will be even higher. I don’t know what drives it, with the exception of so many people losing their jobs to plant closings, etc., and deciding to go into business for themselves,” she said.
Mattson said Liberty makes small business loans to startup businesses as well as existing companies. SBA’s 504 loan program provides loans for real estate or new equipment and enables existing businesses to expand into larger facilities.
“In the SBA 504 program, the applicant’s investment can be as little as 10 percent,” Bowman said.
Sometimes, an SBA loan is a business owner’s only option.
“So much risk is involved in operating a small business, with our guarantee on the loan, the lender looks more favorably at the small businessperson’s proposal. So when SBA guarantees a loan, we are assisting the lender by lessening their exposure and helping the small business client at the same time,” Bowman said.
Once the loan is made, Liberty Bank continues to monitor the customer’s financial performance on a monthly or quarterly basis, Mattson said. “We send them to the Small Business Development Center or the SCORE office at the local SBA for assistance. We don’t treat a SBA loan any different than any other. We counsel borrowers all the time. We visit them at their location and bring up other suggestions.”
Christopher Guest, who with wife Monica and Ben and Mary Blades bought Maria’s Restaurant four years ago, took out an SBA loan at Liberty Bank. “It helped us to get set up and get going at our new location. Now we do all our banking through Liberty and they have treated us very well. Our restaurant has done well,” he said.
Successes like Maria’s and Assist-to-Sell are what Mattson feels earned Liberty Bank the honor of being named the No. 1 “small-business friendly bank” in the state of Missouri by the U.S. Small Business Administration. “It’s nice to have the opportunity to have a third party acknowledge your bank’s services as friendly,” he said.