Tech CU Closes $33 Million in Commercial Lending in the Last Month, Fueling Expansion for Small Businesses and Real Estate Developers
Named #1 producing Credit Union in California of SBA 7(a) and 504 Loans.
San Jose, Calif. (November 3, 2014) —Tech CU (Technology Credit Union) ended the third quarter of 2014 by closing $33 million in commercial real estate (CRE), construction, and SBA loans for Bay Area developers, investors, and small business owners. The SBA reported that Tech CU is now ranked as the top producing credit union by dollar amount of 7(a) and 504 loans in California for their fiscal year ending September 30, 2014. This puts the credit union on track to end 2014 with strong, continued growth in commercial lending.
The $33 million in loans included a $5 million SBA 7(a) loan to support the purchase of a hospitality property in Milpitas, a $15 million construction loan for a 60-unit condominium development in Santa Clara by SiliconSage Builders®, and a $13 million CRE acquisition and renovation loan for a multi-tenant office building in San Francisco.
“Commercial lending is specialized. The loans tend to require customized structures, are typically larger in size, and no two loans are the same,” said Tech CU’s EVP and Chief Banking Officer Joe Anzalone. “Therefore, the requests need to be carefully evaluated to make sure we are servicing our members’ needs while making sure the credit risk has been mitigated for Tech CU. We have assembled a very skilled team of bankers with great experience in CRE, construction and SBA lending to do just that.”
Tech CU offers commercial loans up to $15 million. The credit union’s “sweet spot” is lending to local developers, institutional investors and businesses for loans up to $10 million. And as a local lender, approvals are made at Tech CU’s headquarters in San Jose, which can mean faster turnaround times and more flexibility.
In 2015, Tech CU will continue to focus on commercial real estate, SBA, multi-family and construction lending to grow the credit union’s market share in the Bay Area and increase its network of high quality borrowers.
Tech CU is also a preferred lender for the SBA, which means they can streamline the SBA application process for a qualified applicant, reducing the time between a loan request and funding.
“Tech CU has been a great local partner to work with. They approved our request in a timely manner, giving us access to the financing we needed to pursue this exciting development project,” said Sanjeev Acharya, president and CEO of SiliconSage Builders®. “They have an advantage over other banks and credit unions in that they are a significant institution that is locally headquartered and so understands the nuances of the local market much better. This enables them to be a more effective partner than others. Furthermore, there is an opportunity for us to partner with Tech CU as the preferred residential mortgage lender for potential buyers when the project is finished.”
Tech CU’s commercial real estate loans can be used for real estate acquisition and refinancing, including: owner-occupied and investor-owned office, mixed-used properties, warehouse, light industrial, retail and multi-family properties.
For information and case studies on Tech CU’s commercial loans, go to www.techcu.com/cb, or contact Tech CU at 800.448.1467.
ABOUT TECHNOLOGY CREDIT UNION
Founded in 1960 by the employees of Fairchild Camera and Instrument Semiconductor Division, Tech CU has served the high tech workforce in Silicon Valley for more than 54 years and today has more than 70,000 individual, non-profit and business members and over $1.8 billion in assets. The financial institution is recognized as one of the best managed and strongest in the country, as indicated by Tech CU’s 5-star rating from Bauer Financial, the nation’s largest independent rating service for banks and credit unions. Tech CU’s members have access to 65,000+ surcharge-free ATMs nationwide, online and mobile banking, 9 full-service branches throughout the Bay Area, and comprehensive mortgage, wealth management, private banking and commercial banking services.