| 
Charles Smith
Charles Smith
Head of SBA Lending, Northern Bank
Age: 43
Industry experience: 15 years
After two years that saw some small businesses thrive as others struggled through the pandemic, Charles Smith wants to help more entrepreneurs prepare for future growth, including opportunities that could come out of big, new infrastructure projects. To Smith, U.S. Small Business Administration lending offers a key resource to get businesses ready for the years ahead.
We only get these chances, especially for minority entrepreneurs, to make really good money very few times in the system.
The Texas native has spent time as a farm loan officer with the federal government, but worked for nearly two years at the SBA’s Massachusetts district office. He then joined Eastern Bank, where he oversaw and expanded the bank’s SBA unit for 11 years, including during the Paycheck Protection Program. Smith now works at Woburn-based Northern Bank, becoming head of SBA lending there in April. At the $2.87 billion-asset bank, which has 13 branches in Middlesex County, Smith has been tasked with growing the SBA unit, which includes both Greater Boston lending and the bank’s specialty lending practice for national franchises.
Q: What will be some of the keys for you to grow Northern Bank’s SBA program?
A: It’s going to be about establishing the brand, making sure that the entrepreneurs in the communities where we live and work understand that Northern is going to support them and is actually out there doing lending. We also do national lending for franchises. So, on a national stage, how do we get into those markets to meet with those buyers and borrowers and brokers who refer those deals and make sure they understand that we can get these deals done timely, fast and efficiently for their borrowers.
The one thing that you often hear about SBA loans is they take a long time. I just totally disagree with that. If you have a good lender who knows what they’re doing and sets up the right system, we can get it done in days, not weeks, and get to closure within weeks, not months. Those are the systems that I plan to bring into Northern.
Q: What are some needs in the Greater Boston area for SBA lending?
A: There’s been a lot of money that has come into the community, and there could be a lot more with Build Back Better and initiatives of that nature. You’re going to see a lot of people creating a lot of wealth or getting a lot of contracts. And the key question is: Do you have the capital to support those contracts? Most people will tell you that it’s great to get a contract, but if you can’t fulfill it, it doesn’t really matter. Businesses are either struggling to get by or they’re doing well and want growth capital. If you’re struggling, let’s analyze why, let’s work with some of the partners that are out there to figure out why, and get you back on the right path.
Q: Will the program you develop help business owners in underserved communities get access to SBA lending?
A: I think it’s just a natural extension of what the program already is. And since I would be considered underrepresented or underserved in any of these markets, I have a special affinity for it. I want to be reaching out to those communities and saying: What do you need? Can we support you? Can we do things for you? Can we try to build trust for Northern Bank in those communities? But I also don’t see it as any different than any of the other types of things that I’m going to be doing as far as outreach. It’s just part of my natural bend in life, I believe.
I think that we’re in very interesting times. Some entrepreneurs were hit harder than others, and some didn’t have access to PPP, especially communities of color, which was a disproportionate shame. The lending community is going to have to combat that. We only get these chances, especially for minority entrepreneurs, to make really good money very few times in the system. If you look at the last time there was a big contracting project around here – the Big Dig – there weren’t that many contractors that made out well, especially not people of color. We want to change that, and I hope Northern is part of that solution.
Q: Is there a specific goal or outcome you have in mind as you build out the program?
A: I can’t say I want to be the No. 1 SBA lender in six months, because we don’t have the breadth and depth of branch staff to do it. However, I do want to be known as the No. 1 lender for SBA loans in our local community markets. And to do that, we have to be out there promoting that we’re doing SBA lending, and we have to make sure that it’s easy for our clients to access. And we have to stand behind our work.
Q: How will you promote this with clients?
A: Small business month is May 1 through May 31, so we are doing some small business seminars at branches. I [recently spoke] on a panel that I’ve spoken on for many years to talk about accessing capital, especially for contractors of color. I’m going to use my existing networks to see where there are opportunities to present Northern and our lending platforms to the public. But then I’m also going to walk the streets and walk the local neighborhoods to sit down with customers and say: “This is what Northern is doing. How can we help your business grow?”
Q: Is there anything you wish was different about SBA lending that you think could make it more accessible?
A: I think the SBA has done a great job of making the program easy to use. I don’t think as many banks use it as they should, and I don’t think that banks publicize what it can do for a small business owner as well as they should. They just publicize their lending, not SBA lending. If the word got out there, I think that more people would get access to capital.
Smith’s Five Favorite Classic Toys
- Transformers
- Voltron
- He-Man
- G.I. Joe
- Ultraman
