Isn't That Rich Podcast

Small businesses are the heart of local economies, fueling innovation, job creation, and community growth. In this week's episode of our podcast, we had the privilege of chatting with Chris Healy, the President of Guaranteed Lending at Farmers State Bank, to dive into the world of Small Business Administration (SBA) and United States Department of Agriculture (USDA) loans. With over 25 years of banking experience and a passion for supporting entrepreneurs, Chris shared insights on how these programs help small businesses thrive.

Meet Chris Healy

Chris Healy’s journey into SBA and USDA lending started serendipitously but evolved into a career fueled by a desire to help small businesses succeed. Born and raised in Harrisburg, Illinois, Chris has spent his career understanding the unique needs of local and national businesses. In 2017, he launched the SBA and USDA lending program at Farmers State Bank, earning the bank the prestigious title of Preferred Lender with the SBA—a significant advantage for businesses seeking streamlined funding.

What Sets SBA and USDA Lending Apart?

Traditional commercial lending has its limitations, often constrained by strict parameters. SBA and USDA loans break out of that "box," offering creative solutions to business owners who may not qualify for conventional loans. These government-backed programs help mitigate the risk for lenders, making it possible to support startups, expansions, and even high-risk industries in underserved areas.

According to Chris, these programs act as “an insurance policy for loans.” While Farmers State Bank underwrites and services the loans, the government steps in to share the risk, enabling the bank to extend financing to businesses that might otherwise struggle to find support.

Why Small Business Lending Matters

Small businesses are the backbone of the U.S. economy, accounting for over 99% of all businesses and nearly half of all employment. Chris emphasized that thriving small businesses ripple through local communities, creating jobs and fostering economic stability. “Small businesses are the lifeblood of our communities,” he shared. “They’re run by entrepreneurs taking risks, hiring people, and driving our local and national economies forward.”

Who Benefits from SBA and USDA Loans?

The versatility of SBA and USDA programs means they’re accessible to a wide range of businesses, from franchises to mom-and-pop shops. While SBA loans cater primarily to for-profit ventures, USDA loans extend to not-for-profits in rural areas (defined as communities with populations under 50,000). Farmers State Bank has supported everything from startups in garages to multi-million-dollar expansions, leveraging these programs to help entrepreneurs turn their visions into reality.

Preferred Lending: A Game Changer

Being a Preferred Lender with the SBA means Farmers State Bank can approve loans in-house without waiting for external review from the SBA. This speeds up the process significantly, reducing the typical approval timeline and ensuring businesses can access funds quickly.

“When a business comes to us, we don’t just sell loans; we provide solutions,” Chris explained. “Our expertise ensures we can tailor these programs to meet the unique needs of our clients.”

Tips for Entrepreneurs

Chris offered valuable advice for aspiring and current business owners:

• Do Your Homework: Before approaching a lender, research your business idea thoroughly. Create financial projections and a business plan to demonstrate viability.

• Leverage Resources: Utilize local Small Business Development Centers (SBDCs) to refine your business plan and financial forecasts. In Southern Illinois, institutions like Southeastern Illinois College and SIU Carbondale offer excellent support.

• Be Prepared to Invest: SBA loans typically require a down payment or collateral. “Skin in the game” shows lenders that you’re committed to your venture.

Real Stories, Real Impact

Chris recounted numerous success stories, including helping a small e-commerce business grow from $400,000 in annual sales to over $30 million. By providing strategic financing, Farmers State Bank transformed the trajectory of that business, creating generational wealth for its owners.

“Sometimes saying no is the best thing we can do,” Chris noted. “But when the timing and opportunity align, we’re here to say yes and help businesses thrive.”

The Future of Small Business Lending

Looking ahead, Chris sees SBA and USDA programs continuing to evolve with increased federal support. As interest rates fluctuate and market conditions change, Farmers State Bank remains committed to flexibility and innovation, ensuring entrepreneurs have the tools they need to succeed.

Final Words of Wisdom

To entrepreneurs and small business owners, Chris’s advice is simple but powerful: “Don’t stop. Keep going. Find knowledgeable partners who will support you responsibly and help you achieve your dreams.”

Whether you’re starting a business, expanding an existing one, or navigating tough times, SBA and USDA loans can be the lifeline you need. At Farmers State Bank, we’re here to guide you every step of the way. Ready to take the leap? Reach out to our team today and let’s turn your dream into reality.