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ATLANTA (Profitable.com) Fidelity Bank, the $2 billion asset company and subsidiary of Fidelity Southern Corporation (Nasdaq: LION), has announced its approval by the U.S. Small Business Administration to be one of nine loan pool originators in the U.S. for the new 504 first mortgage loan pool program (FMLP).
The new program, recently approved under the American Recovery and Reinvestment Act, will provide a government guarantee on pools of portions of eligible 504 first mortgage loans assembled by the selected pool originators to be sold to third-party investors. This program will give new life to those needing small business loans all across the country. According to the U.S. SBA, “Lenders will retain at least 15 percent of each individual loan, pool originators will assume 5 percent of the risk, and the SBA will guarantee the remaining 80 percent.”
Fidelity Bank is one of nine banks that have been selectively approved so far. To be included in the pool, the first mortgage must be associated with a 504 loan disbursed on or after February 17, 2009. The program will be in place until February 16, 2011, or until $3 billion in new pools are created, whichever comes first.
“Fidelity Bank’s SBA Lending team is excited to have the opportunity to participate as a loan pool originator in this new program that will fuel the jump-start of the secondary 504 loan market,” said Daniel Preston, Senior Vice President of SBA Lending at Fidelity Bank.
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank, the oldest and largest community bank headquartered in Atlanta, and LionMark Insurance Company, provides banking services and credit related insurance products through 23 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA loans are provided through employees located throughout the Southeast. For additional information about Fidelity’s products and services, please visit the website at www.FidelitySouthern.com.