Program seeks to encourage small business lending pending reauthorization of federal incentives
LOS ANGELES – City National Bank, California’s Premier Private and Business Bank®, today announced that, to help encourage small business lending, it will pay 50 percent of the standard loan guarantee fees up to $3,000 for SBA 7(a), 504, and SBAExpress loans.
Standard loan fees range between 2 percent to 3.75 percent of the guaranteed portion of the loan.
To qualify for the incentive, loan applications must be received by September 10, 2010 and loans funded by December 31, 2010. Loan applications can be made by calling (800) 722-5945.
“City National is known for banking entrepreneurs, and this program demonstrates our continuing commitment to small business owners,” said Jim Wullschleger, senior vice president and Business Banking manager. “With SBA loan incentives having expired in May, small businesses remain hamstrung in their efforts to invest in and grow their businesses. And that comes at a time when small businesses – typically a key employment driver – have a vital role to play in our economic recovery.”
The American Recovery and Reinvestment Act of 2009 authorized the SBA to significantly reduce or eliminate certain loan fees and increase to 90 percent the guarantee on eligible SBA 7(a) and 504 loans. Since the program expired, however, SBA lending has dropped by roughly 70 percent nationwide, and proposed legislation extending the fee incentives has been delayed until Congress reconvenes in mid-September.
Small Business Banking at City National
City National, an SBA Preferred Lender, also offers conventional loans and lines of credit; business deposit and treasury management services; international banking and foreign exchange; and check and Visa® commercial credit cards.
In 2010, City National won nine Excellence Awards for small business and middle market banking from Greenwich Associates, a leading global financial services research and consulting firm. It is the fifth consecutive year that City National has been recognized for its performance serving small businesses and middle market companies.
About City National
City National Bank is the wholly owned subsidiary of City National Corporation (NYSE: CYN). It is backed by $21.2 billion in total assets, and provides banking, investment and trust services through 80 offices, including 17 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its investment affiliates manage or administer $54.6 billion in client investment assets, including more than $34 billion under direct management.
For more information about City National, visit the company’s Website at cnb.com