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Opus Bank Receives “Green Light” Letter to Apply for SBIC License

August 31, 2015, 07:14 AM
Filed Under: Industry News

Opus Bank announced the Small Business Administration (“SBA”) has issued a “Green Light” letter inviting Opus to continue its application process to obtain a license to form and operate a Small Business Investment Company (“SBIC”).

The SBA issued a “Green Light” letter to Opus after reviewing preliminary application materials and interviewing the proposed SBIC investment team. Receipt of a “Green Light” letter from the SBA does not assure an applicant that the SBA will ultimately issue an SBIC license, and Opus Bank has received no assurance or indication from the SBA that it will receive an SBIC license, or of the timeframe in which it would receive an SBIC license, should one be ultimately granted.

Stephen H. Gordon, Founding Chairman, Chief Executive Officer and President of Opus Bank, stated, “Since Opus’ inception, we have adhered to an entrepreneurial approach to partnering with our clients by providing the capital funding and strategic advice necessary to enable their vision to expand and grow. The establishment of a bank-sponsored SBIC is a meaningful differentiator that will enable Opus to not only commit its balance sheet by providing senior debt solutions, but also to further address a company’s capital needs by committing equity.”

Gordon added, “The SBIC will have an investment strategy of focusing on making non-controlling, growth equity investments in lower middle-market companies located in the Western region. Opus Bank is sponsoring the fund, and it is expected that Stephen H. Gordon, Michael Allison, and Dale Cheney will act as the fund managers.”

Dale Cheney, Senior Managing Director, Head of the Merchant Banking division, stated, “The growth equity investments contemplated to be made by our principal investment platform will complement Opus’ Merchant Banking and Commercial and Specialty Banking divisions by providing a one-stop capital and advisory solution to lower middle-market companies. While the lower middle-market is the largest segment, it is also the most inefficient when it comes to accessing institutional growth equity investment and sophisticated solutions. As principal investors, we will partner with management teams, owners, and entrepreneurs to provide the growth equity investment and strategic guidance necessary to unlock value and realize the company's growth objectives."

Opus Bank is an FDIC insured California-chartered commercial bank with over $5.8 billion of total assets, $4.6 billion of total loans, and $4.6 billion in total deposits as of June 30, 2015. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its retail bank, commercial bank, merchant bank, and correspondent bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial business, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender.

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