The news: Georgia-based Community Bank & Trust, worth $6 billion in assets, wants to become a national servicer of SBA 7(a) loans through its newly launched subsidiary, Phoenix Lender Services.
The strategy: The new unit will originate SBA 7(a) loans for the bank and offer underwriting, closing, secondary market sales, servicing, and liquidations for other small lenders. Most of these lenders could not afford to otherwise enter the market.
Community Bank & Trust CEO Chris Hurn believes bringing more lenders into the space will help small businesses get much-needed capital, per American Banker.