Small Business Administration (SBA) loans have long been a cornerstone for entrepreneurs aiming to grow their businesses. These loans are federally guaranteed, profitable for banks, and serve as a vital resource for the economy. Remarkably, nearly 20% of the U.S. workforce is employed by businesses with fewer than 20 employees. However, despite their importance, many banks are hesitant to participate in the SBA loan programs due to complex rules and paperwork. Chris Hurn, a prominent figure in the small business lending space, is determined to change that dynamic.
Hurn, 52, recently launched Phoenix Lender Services, a company designed to help community banks offer SBA loans without the burden of navigating the intricate requirements. Operating from Winter Park, Florida, Hurn has assembled a 40-person team to handle underwriting, servicing, and liquidations, effectively acting as an outsourced back office for lenders. His mission is clear: to make SBA loans a more viable option for small banks and, in turn, for the entrepreneurs who depend on them.
The Challenge for Community Banks
SBA loans, particularly the popular 7(a) program, come with extensive documentation and compliance requirements. Banks that fail to meet these standards risk jeopardizing their SBA guarantees. This complexity has deterred many community banks from offering these loans. Out of 9,000 federally insured banks and credit unions in the U.S., only 1,452 participated in the 7(a) loan program in 2024. Moreover, the number of SBA lenders has declined by 9% since 2017, excluding a pandemic-induced spike.
According to the Federal Deposit Insurance Corporation’s 2024 Small Business Lending Survey, nearly half of small banks cited a lack of expertise and staff as their primary reason for avoiding SBA programs. Establishing an in-house SBA loan team is costly, with estimates ranging from $1.5 million to $2 million. This investment often requires hiring 10 to 12 specialized employees and making at least $25 million in annual SBA loan originations to justify the expense.
Enter Phoenix Lender Services
Hurn’s Phoenix Lender Services aims to eliminate these barriers. By outsourcing SBA loan services to Phoenix, banks can tap into a pool of expertise without incurring significant overhead costs. Fees for Phoenix’s services range from 1% to 3% of the loan amount, depending on the level of support required. The company also facilitates the sale of the guaranteed portion of SBA loans on the secondary market, a process that can yield banks an 8% to 12% premium above the loan’s face value.
“You know how many companies in America had an SBA loan at one point?” Hurn asks rhetorically. “Apple, FedEx, Oracle, Outback—you just go down the list.” However, many small businesses today struggle to secure SBA loans through their local banks, a gap Hurn is determined to fill.
A Legacy in Small Business Lending
Hurn’s career in SBA lending began in the 1990s with GE Capital, one of the largest non-bank lenders at the time. Over the years, he has built a reputation as an innovative leader in the field. In 2015, he founded Fountainhead Commercial Capital, which issued over $28 billion in small business loans, most of them SBA guaranteed. Now, Hurn has transitioned his lending team and a $200 million SBA 7(a) loan portfolio to Phoenix, a subsidiary of Community Bankshares, Inc., based in LaGrange, Georgia.
Phoenix Lender Services isn’t Hurn’s first foray into entrepreneurship. He previously co-founded Mercantile Capital Corporation, specializing in SBA 504 loans, which focus on real estate and equipment financing. Mercantile funded over $500 million in projects before Hurn sold the business in 2010.
Simplifying SBA Lending
Despite the perception of bureaucratic red tape, Hurn believes SBA requirements are reasonable given the federal guarantees involved. “It’s just easier to blame the faceless bureaucracy of the SBA, to treat them as a scapegoat,” he observes. However, this complexity has worked in his favor, narrowing the pool of experienced SBA lenders and reducing competition.
Hurn’s approach is resonating within the industry. Bob Coleman, a leading expert in small business banking, praises the talent Hurn has brought to Phoenix. “The strength of Phoenix lies in the expertise of its team,” Coleman says. He also notes that the SBA’s approval of Fountainhead’s loan portfolio transfer to Community Bankshares is a testament to Hurn’s credibility.
The American Dream
Hurn’s passion for small business stems from his upbringing in Peoria, Illinois, where his single mother ran a candy business from their home. This early exposure to entrepreneurship taught him invaluable lessons about marketing, operations, and resilience. After earning degrees from Loyola University and the University of Pennsylvania, Hurn embarked on a career that would intertwine his professional ambitions with his commitment to supporting small businesses.
Today, Hurn’s vision for Phoenix Lender Services reflects his belief that SBA loans should be a first option for many borrowers, not just a fallback. By simplifying the process for community banks, Hurn is making it easier for entrepreneurs across the country to access the funding they need to build and grow their businesses.
A Promising Future
With Phoenix generating loans for its sister bank, Community Bank & Trust, and continuing to expand its reach, Hurn’s innovative model could reshape the landscape of small business lending. By addressing the challenges that have long hindered community banks, Phoenix Lender Services is opening doors for countless entrepreneurs and reaffirming the vital role of SBA loans in the American economy.
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