The bank's SBA department, consisting of 12 dedicated team members, manages all inquiries from retail branches, providing support to both colleagues and small business clients. In addition to assisting clients in obtaining SBA 7(a) and SBA 504 loans, the team educates clients about SBA loan programs, trains colleagues to recognize when referrals are necessary, and services existing SBA loans. Team leader Laurence Yeung, Senior Vice President and Director of SBA, joined the bank in 2024 and brings over 20 years of experience from institutions such as Wells Fargo and East West Bank, where he held positions including Branch Manager and Regional Sales Manager for the SBA Department overseeing five counties in Southern California.
As an SBA Preferred Lender, the bank has a greater capacity to serve small business clients. The SBA team can make internal decisions quickly, which is crucial for many small businesses. This designation also signifies that the bank is an experienced lender, equipped with a professional team adept at handling a variety of situations.
“SBA lending differs from traditional lending. We often deal with many types of loans—ranging from commercial real estate purchases and refinances to working capital, equipment loans, partner buyouts, and business purchases,” Laurence explained. “We dedicate significant time to understanding each client’s business to tailor transactions that meet their specific needs.”
Many small business owners struggle to secure traditional business loans due to insufficient collateral, a lack of down payment, or other qualifying requirements. SBA loans offer more flexible collateral requirements and can have down payments as low as 10%. Additionally, these loans come with longer repayment terms, allowing small business owners to retain more capital for their operations.
“Operating in an uncertain economy is tough for any business, but small businesses may be particularly affected by high inflation, which increases costs for hiring and inventory, as well as cash flow challenges,” Laurence explained. “Since the bank’s risk is mitigated by a government guarantee, we can provide these more accessible loan options to small business owners.”
The economy has shifted in the aftermath of the pandemic and the current political climate. There is a growing demand for capital as small businesses aim to navigate the hurdles posed by high inflation, which can lead to cash flow problems. Laurence pointed out that many small businesses in the greater LA area are working to recover from the devastation caused by wildfires. The SBA is allocating funds to support business development in emerging areas such as Temecula, Bakersfield, and Apple Valley, where many people are relocating from regions with a higher cost of living.
Laurence shared a story to illustrate how the SBA team positively impacted a small business. “We recently worked with a manufacturer in downtown LA, a family business run by the third generation,” he explained. “They sought to acquire a new location and needed funds for several reasons. As first-time SBA loan applicants, they required our hands-on support in everything from identifying suitable loan products to understanding how to prepare the necessary documentation. We guided them step-by-step, so to speak, so they were able to prepare the entire package and navigate challenges that arose along the way. Ultimately, this small business was able to refinance its existing property and secure a $1 million loan to purchase a new location, acquire equipment and inventory, and hire additional staff—resulting in business growth.”
Laurence mentioned that the bank has hosted over 10 SBA-focused seminars in the past year. “We have found that most small business owners who attend these events have little understanding of how the SBA loan program works and often perceive it as complicated and burdensome,” he said. “We aim to make the process as straightforward and friendly as possible.”
He added that the seminars also emphasize what is necessary for small business owners to be financially prepared to apply for an SBA loan. These events are the first step in empowering owners to address their capital needs. Following up with one-on-one meetings is the next phase, allowing team members to provide tailored suggestions based on individual circumstances.
Laurence stated that over the next year, the SBA team aims to expand its seminars into new areas, including near branches in Rockville (MD), Chicago, and Boston. This expansion will help reach more small business owners and make them aware of the opportunities available through SBA loans. “We also plan to provide more internal training for our front-line staff, who are important financial partners for us,” he noted. “Currently, we are ranked among the top 15% of SBA lenders, but we want to become even more aggressive in increasing our transaction volume to improve our ranking further.”
The SBA team recommends that aspiring entrepreneurs interested in SBA financing for the first time attend a seminar to learn more about the SBA program. They should also consider reaching out to an SBA loan officer to discuss their specific situation and financing needs. Additionally, it's important to begin preparing financial documentation, including personal and business tax returns for the past one to three years.
This article does not constitute legal, accounting or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.
