Western Commerce Bank: SBA Lending Record

Western Commerce Bank and SBA

Western Commerce Bank shows 391 loans within SBA's FY2017 through FY2026 data, with $245.1 million approved in gross dollars. The record is wholly SBA 7(a). The file names NM for the lender. The numbers describe loans Western Commerce Bank holds now or held last, as SBA records them, and SBA provides the guarantee on all 391 loans. They say nothing about what the bank requires of an applicant.

Hotels and motels stand out

Of the 391 loans, 248 have no named class. Hotels and motels lead the rest with 65 loans, far ahead of the full-service restaurant at 13, liquor stores at 9, and medical offices and coffee shops at 7 each. New Mexico accounts for 344 loans, Texas for 29 and Arizona for 7.

Cancelled approvals and losses

Floor 11.2%, ceiling 11.2%: for FY2017 to FY2024 approvals the two meet, even with undisbursed loans counted as cancelled. The charge-off figure is suppressed under its own rule, since the cohort has fewer than 30 loans; the gap is not a zero.

A hotel study first

With 65 hotel and motel loans, the nearest study is for a hotel. It should show what rooms earn against their cost, the franchise terms and the renovation reserve, with a slower year in the model, and an appraised value that supports the cost. Restaurant studies hinge on sales per seat, and a liquor store study on licence status, basket size and inventory turns. A medical office study weighs provider capacity and payer mix. Since 248 loans are unclassified and the file sits in New Mexico, a project of another kind, or in another state, has to explain why this record applies.

A note on lodging and the rest

Hotels and motels lead at 65 loans, but 248 of 391 loans sit outside the named classes, so the class table describes a minority of the book. The 11.2% cancellation figure is the one outcome measure, because the charge-off rate is held back. A borrower with a hotel project can use the record as background, and anyone else should build the study on the site, the market and an appraisal that holds.