The Illinois Business Journal

Friday, July 04, 2008
November 2005 issue - Vol.6, No.2, 24 pages

We Mean Business. Illinois Business.

Wal-Mart woos Congress as bankers cry foul

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By KERRY L. SMITH

   A growing, bipartisan group of U.S. House of Representatives members continue asking the Federal Deposit Insurance Corp. to hold public hearings on Wal-Mart's latest effort to branch into the banking industry.
   Rep. Paul Gillmor, a Republican from Ohio, and Rep. Barney Frank, a Democrat from Massachusetts, are asking for a public hearing process specific to Wal-Mart's recent application for deposit insurance to gain an industrial bank charter in the state of Utah.
   Wal-Mart has tried to enter the banking realm three times [continue]

The world's largest retailer continues to apply for state charters to buy financial institutions and open more banks. Despite unsuccessful attempts in California, Wal-Mart has applied to the FDIC for deposit insurance to open Money Centers in Utah. Seven states allow local versions of industrial banks.

Hotel experts say development and financing must be done by the numbers

Bridge connecting the Village of Ketchikan with Gravina Island

Work on the Spring Green Lodge in Southern Illinois University Edwardsville's University Park came to a halt last spring due to lack of financing.

By ALAN J. ORTBALS

   While the foundation of Spring Green Lodge in Edwardsville becomes overgrown with weeds and its developer searches for financing, experts say that hotel development is a sophisticated and methodical process that doesn't allow for shortcuts.
   It all begins with understanding the marketplace, according to Robert O'Loughlin, president and chief executive officer of LHM. O'Loughlin has developed 25 hotels all over the United States through his 38-year career.
   When O'Loughlin spies a [continue]

Small Business Administration lending hits record high in Illinois for FY2005

By ALAN J. ORTBALS The Small Business Administration hit record lending levels in the state of Illinois in recently completed FY2005. Loans were up a whopping 74.5 percent over FY2004, according to figures supplied by Robert Esquivel, finance division chief for the Illinois District Office of the SBA. Total loan volume was up from 2,066 loans in FY2004 to 3,605 loans for fiscal year 2005. Esquivel attributes much of the increase to a combination of making the programs easier for lenders to use and an education campaign to change the image that some bankers have of the SBA loan programs. "We're always fighting the misconceptions of SBA financing," said Esquivel. "One, that there's a lot of		paperwork. Two, that it takes forever. And the third, that it's too expensive to deal with." Because of these negative misconceptions, some bankers have shied away from using SBA programs. To try to dispel these myths, the SBA began holding bimonthly seminars and lenders forums to educate bankers on the programs and convince them of their ease of use. Esquivel says that the turn-around time to get approval from the SBA through the Express Loan Program is around 36 hours. However, bankers unfamiliar with the program frequently think it takes up to six months, according to Esquivel. Under the Express Loan Program, banks can lend up to $350,000. "Even under the regular 7a loan program, our PLP (Preferred Lenders Program) lenders get turn-around times that are equal to the Express Loan Program if not better," he said. Loans guaranteed under the 7a program can range up to $2 million. The preferred [continue]

Look inside our print edition for more Southwestern Banking and Finance articles!