Posted: April 16, 2010

Melissa Burroughs, executive vice president and chief lending officer of Old Point National Bank, was named Virginia's 2010 Financial Services Champion of the Year.

The lending role

I'm responsible for the oversight of all lending functions, which include commercial, retail and indirect lending. I also oversee SBA lending as part of commercial lending.

I've been at Old Point for five years. Prior to this, I was in various banking industries since the early 1980s. What I love about being in this lending role is that I get to live vicariously through our business customers. I help them get what they need to make their businesses prosper. I assist with cash management, credit cards or payroll needs. All this is needed to make their companies run effectively. It's all about helping small businesses be more successful.

American Recovery Capital Loan Program

The program came about last year in June. Old Point was one of the first banks in Virginia to begin lending through it.

When the ARC program came down to me, it seemed like an opportunity to help our small-business customers by offering them some relief. That's what the program really did. Small-business customers were given a loan to assist them with their businesses. ARC basically provides a loan to small business to help them make their loan payments or pay off other credit/debt.

I remember having a conversation with an owner of a small demolition company. He was having problems making payroll because he was trying to keep up with making timely payments on his loans. I told him about the program and how we would lend him money to make payroll to keep his employees and keep his business active.

The ARC program helps people keep businesses good that were perhaps strained because they had lost a contract or laid people off. The program is not there for businesses on the verge of shutting down. It was established to assist businesses that are having a little bit of stress and appear to have a great future ahead of them. These businesses can see the light at the end of the tunnel. They just need help getting there.

Helping small businesses

Old Point for years has had a number of SBA loan products. We are a preferred provider, which means we have the ability to do expedited applications for SBA loan products. Our 15 commercial lenders regularly receive SBA training and understand how to uphold SBA rules. It's important that we are there for small businesses.

Our country was built by small businesspeople. Eighty-seven years ago, Old Point was started by small businessmen who had a dream of opening their own bank. This attitude and perseverance keeps our country going.

Helping businesses

There are a number of resources available in Hampton Roads to assist businesspeople. When deciding to open your own business, the first place to go is not the bank. You need to sit down and write a detailed realistic business plan. The Small Business Development Center headed by Jim Carroll and his team have great resources and training classes that can help a small businessperson write a business plan and budget. There are also CPAs who will sit down and offer you advice.

Biggest mistakes

I've been doing this for 25-plus years and the No. 1 mistake that small-business owners make is believing their business will take off much faster.

One thing that we really encourage small businesspeople to think about is planning for the worst. Folks think they are going to get all these contracts and bring in $5 million the next year. What happens if you don't get those contracts or make budget? Or what happens if you do get all those contracts, will you have the manpower to meet the demand? Fast gross can be worse than no gross.

Everyone has a dream that their business will be successful. There is absolutely nothing wrong with that. You can have a dream but you have to be realistic. You need to think about the "what ifs." What's the worst that can happen - and plan for it. Our bank is good at taking a look at the worst-case scenarios and helping them work through it.

On the award

Oh my gosh! It was so humbling. I felt awesome. I have to tell you that I didn't do the work; I was the conduit. The success and honor really go to our commercial lenders at Old Point. They did all the heavy lifting. I was kind of like the cheerleader and encouraging them to do the loans and smoothing things with the SBA. The award is deserved by all of my lenders and not just me. They did the hard part.