When Warren Holden took his banking experience to Springfield’s Small Business Development Center 17 years ago, he never thought he’d be a part of so much growth in the community.

The SBDC, 300 E. Auburn Ave., has helped local businesses gain millions in loans, which have created hundreds of jobs during Holden’s tenure, said SBDC Executive Director Steve Anzur.

Holden started in banking 45 years ago, coming to Springfield to work at the Kissell Co., then moving to M&M Federal Savings Bank before landing at SBDC.

“I’ve always felt banking is there to assist people in establishing and expanding their businesses. Being involved with the SBDC has allowed me to really see and feel the impact of what we’re doing. This has been a delightful experience and I’ve gotten to know the community better,” said Holden, the SBDC’s retiring loan program manager.

Last November, an official transition of sorts took place, with Holden relinquishing his role to Mark Keating, who came to the center as a part-time business counselor in early 2008.

“Really, these guys just switched hats,” Anzur said, “with Mark becoming our full-time loan officer and Warren becoming a counselor.”

The transition has been seamless, but there was concern on Holden’s part about how to make the change.

“Steve and I had conversations about my retirement before Mark came on board. I didn’t want to leave the organization in the lurch, and lo and behold, Mark drops out of the sky one morning,” Holden said.

“After we worked together for a while, we agreed that Mark had the background and the ability to do this job, so we started working with Mark with the goal of him taking over.”

Keating came to the SBDC looking for a job, but knew Holden from their years working together at M&M Federal many years before.

Keating brings about 30 years’ experience in various types of lending, senior management, operations, branch management and mortgage lending.

“He’d gotten gray and I’d gotten bald,” Keating said of their reunion.

Learning a new game

The SBDC administers government-based economic assistance loans, each with its own rules, regulations and criteria, so Keating has been learning what he can and can’t do.

“Most of (Holden’s) counseling since he left has been with me,” Keating said with a chuckle.

The SBDC deals with commercial lending, matching business owners to government programs and local banks that will agree to participate in loan packages.

Keating’s lending background — mostly retail with some exposure to commercial lending — has required him to work on internalizing a completely new set of rules and how they apply to commercial clients.

“The good thing,” Keating said, “is lending is lending and you’re still evaluating an applicant’s credit capacity, collateral and character. I’m starting to get the hang of this.... It’s been challenging, but they let me come back every morning, so things are gong well.”

Since it started loaning money in 1984, the SBDC has found a home for more than $16.2 million, which has helped create more than 1,200 jobs.

What SBDC’s loan numbers don’t indicate, Anzur said, are the partnerships with local banks. When businesses partner with SBDC, the loan program manager creates an individualized loan package that often includes interest rates that are usually lower than the market rate, lowering the monthly payment.

“The true value in many cases is that without the SBDC taking the risk position, there are businesses that could not obtain loans,” Keating said. “We give up first position on most of the collateral, which reduces the bank’s risk, which in turn increases their incentive to come on board.”

The SBDC also works with the Clark County Development Corporation as an agent for the Small Business Administration’s 504 economic development assistance loan program.

According to Anzur, SBA 504 loans require a 50 percent match from banks, so the typical distribution of the remainder is 35 percent to 40 percent from the SBDC and 10 percent to 15 percent comes as an equity investment from the business owner.

Interest rates, offered at a fixed rate for 10 to 20 years, are normally 1-2 percentage points lower than banks offer.

“We really are a partner with banks and community leaders  — that’s how we see ourselves,” Anzur said.

Beyond money

Funded by grants from the city, county and the Ohio Department of Development, the SBDC offers office space for smaller start-ups and business counseling services.

Details about SBDC programs are available at smbusdev.org.

The center can accommodate about 40 to 50 tenants at any given time and is currently at capacity.

“Our goal is to help tenants grow so they can branch out into the greater community. We’re happy when our tenants come in and tell us they’re going to have to move out because they have bigger plans and greater needs. We’ve also been fortunate in that when somebody moves out, somebody else moves in,” Anzur said.

Anzur, Holden and Keating agree that the free business counseling — some conducted one-on-one and some in the form of business start-up workshops — may be the most important service the SBDC provides.

“One of the things we emphasize is that owning your own business is a 20-22 hour a day job. You may be sleeping, but you’re dreaming about it ... or having nightmares about it,” Holden said.

Sometimes, the counseling results in a client deciding against starting a business.

Counseling can also help businesses secure loans.

“The fact that we’ve worked with the client and we have provided some business counseling, walked them though cash flow projections, the banks at that point feel the client is more knowledgeable and they feel very comfortable that they have a credit-worthy, capable client,” Holden said.

Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.