BOSTON, May 10, 2001 – Eastern Bank has been designated a "Preferred Lender," according to an announcement made today by Elaine F. Guiney, Massachusetts Director of the U.S. Small Business Administration. Under the Preferred Lenders Program (PLP), high-volume SBA lenders such as Eastern are delegated loan approval, closing and most servicing and liquidation authority, enabling them to process loans faster. The SBA generally approves PLP loans submitted to them by participating lenders in less than 36 hours. To earn the PLP designation, the lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures.

“We award this status to lenders who have demonstrated their commitment to the small business market and have the ability to effectively serve that market,” said Director Guiney. “With the distinction of preferred lender status, Eastern Bank will be able to streamline and significantly speed up the loan approval process to small businesses,” she added.

Small business lending is one of Eastern Bank’s fastest growing business units. Between 1997 and 2000, small business loan outstandings more than doubled to $55 million. Eastern now has about 10,000 relationships with small businesses, providing everything from loans to cash management services.

“The Preferred Lender Program further enhances our ability to serve customers,” said Cynthia Merkle, Senior Vice President and head of Eastern’s Small Business Banking unit. “We appreciate the SBA’s show of confidence and look forward to working with the SBA to meet the needs of small businesses in Massachusetts.”

The SBA, under the 7(a) loan guaranty program, can guarantee 75 percent of a loan up to $1 million. Loans are available for many business purposes, such as real estate, expansion, equipment, working capital or inventory. The interest rate is not to exceed 2.75 over the prime lending rate. Maturities are up to 10 years for working capital and up to 25 years for fixed assets.

Based in Boston, Eastern Bank is a $3.5 billion full-service banking company with 47 offices in Eastern Massachusetts. Eastern’s lines of business include consumer banking, corporate lending, capital markets, small business banking, cash management, asset-based lending, equipment leasing, private banking, trust and investment management, mortgage banking, and consumer finance.

For more information, contact: Joe Bartolotta, Public Relations Director, Eastern Bank,
(781) 596-4411, or e-mail Joe Bartolotta.