Empire National Bank expands into SBA 7(a) loans

Empire National Bank said Wednesday that it is expanding its small business lending to include loans backed by the Small Business Administration.

The Islandia-based bank also said it has hired an executive to spearhead Empire’s growth into SBA 7(a) loans.

Philip Amico, who had been a vice president at Lake Success-based Newtek Small Business Finance LLC, has joined Empire as vice president and senior commercial SBA loan officer.

He will be responsible for bringing in new small-business clients, said Douglas C. Manditch, the bank’s chairman and chief executive.

“Since the SBA guarantees up to 75 percent of 7(a) loans, there is a slightly lower threshold for qualifications, which gives more small businesses an opportunity to get financing,” Manditch said, adding that a small business would apply directly to Empire, which would then obtain SBA backing as part of the approval process.

Manditch said the SBA 7(a) loans would run between $100,000 and $5 million.

Empire had about $500 million in loans outstanding as of Sept. 30. Manditch said SBA 7(a) loans could add about $35 million to its portfolio in 2018.

“We want to build this with a conservative approach and build it the proper way,” Manditch said.

Empire has four branches on Long Island and one branch in Manhattan.