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Anyone with our entrepreneurship.
The theme with chip man he is from a -- banking on the -- there and then a second act -- -- -- -- -- in the banking world.
-- your background you were found -- one -- -- early Internet banks back in the ninety's.
Talk us a little bit about how that experience.
Got you ready for the current incarnation.
Well you're right Robert in 1993.
-- for my brother in law and I started the first -- of the world on the Internet.
And we didn't really see the need for branches at that time.
Quick and was as a product that was on the web.
And we want -- we wanted to replace -- and put banking on the Internet which we've successfully did.
This bank -- World Bank.
Has no branches as new tellers as new customer service reps.
And we serve only four industries is -- very specific niche oriented here and -- tell -- which with the four industries are.
We only focus today veterinarians.
And funeral directors.
On a national basis at a Wilmington, North Carolina.
And -- leverage and government guarantee program Small Business Administration specifically -- seven -- program.
In order to provide us support in making alone than a traditional bank would not night.
To how did you choose these niches and I know that veterinarians for one as it is a very high profit margin business.
Might -- that could be a fairly high barrier to get into obviously in the especially training and and no doubt a lot of insurance to.
How did you pick these particular -- it's because they're more profitable businesses and you see the return coming back to you better than thinking on on other industries.
What we -- Robert let me give you an example so.
-- 80000 veterinarians in this country they're 25000.
Practices that are 4500 practices into -- right.
80% of the graduates of veterinary college in United States today -- one so let's take an example.
33 year old doctor Jan Smith.
Works for 65 year old doctor may be.
It's a million dollar revenue business and he wants to so he's in a 500000.
Dollar building saying 2000 square feet.
And doctor Smith has 5000 dollars in the bank and the American dream.
She has 740 credit score she has 200000 dollar for the student debt.
And wants about this practice -- -- a million dollar revenue practice -- 300000 dollars 30% ish.
It's worth about three times earnings he or she needs 900000 about a practice and she needs 500000 dollars to purchase the -- story.
Package -- resonating.
-- income tax returns the company's income tax returns and -- go to the local traditional bank.
In thirty days later or sixty days later the answer will be no because there's not enough -- We will give her an answer and 48 hours and with the help of the SBA seven A program will make that loan for 25 -- based on the cash flow.
Absolutely and the same thing through an independent pharmacists and how your default rates compared to those of of larger banks or maybe credit unions may be.
Comparison for -- then maybe say JPMorgan which has so many different businesses that they would be that's a really really great question Robert so.
The average default rate in the traditional commercial bank runs historically about 2% in the commercial portfolio probably wanted to -- one and a half and in not trying times and we started our back in 2007.
And ultimately were -- in 2000 and they and in the world right -- good timing good to have about that so at the end of the day our charge off ratio has -- exactly.
What the -- special about one and a -- to answer your specific question.
And you've been one of the most active lenders out there I mean throughout the the downturn and through now I mean is well -- -- -- Frequently rank in the top three to five in the US overall.
That's correct the SBA has a lot of published data out there and typically we're.
Number three in the country -- and names that you would be familiar with wells -- typically number one JPMorgan Chase's typically -- will make about 300.
And fifty million to 400 million dollars in loans in these segments this year under this program.
In -- obviously that's been you know something of interest as we've talked to small business owners all the time -- are having difficulty accessing.
Loans are getting access Stallone's what's the biggest hurdle out there right now with the business owners that you speak weapon in.
Getting them you -- for you to grant them approval you're sitting on the the lending side of the deaths.
-- with a plan for success.
We know that your great -- you know we we we know that there are eleven applications and only one person gets a veterinary college.
But -- with a plan.
Come with a budget come with -- the practice did this and I'm gonna -- that.
And you do that and and you have the the tiger and in all likelihood will end of the month.
-- -- is the founder of of live -- bank of -- AS one of those going back -- lifetime and live -- bank in Wilmington, North Carolina thanks so much for coming into joining us here.
To talk to us about your business here very -- very interesting business lending only to veterinarians dentists independent pharmacists and funeral directors.
One of the most active small business lenders out there.
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