Business Bank of Nevada Sets Aside $20 Million to Help Business Owners Purchase a Facility Instead of Leasing Office Space.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--May 29, 2002

Business Bank of Nevada (OTCBB:BBNV) today announced that with interest rates at a 40-year low it's making a major push to help business owners in Nevada purchase a facility instead of leasing office space by setting aside $20 million for owner-occupied or construction financing. The lending campaign kicks off the first of next month and will run for 90 days through the end of August or when the bank has reached the $20 million loan goal set aside for this special program.

In an effort to make businesses aware of the financing that is available to them through Business Bank, the bank is using a number of communications vehicles, including print advertising and direct mail, to communicate its message to thousands of businesses throughout Nevada. The primary message in this marketing campaign is the thousands of dollars businesses can save each year as they make mortgage payments that are significantly less than lease or rent payments, that are tax deductible and that help build equity in the business. (To see a PDF of file of a rent versus ownership comparison, go to http://www.bbnv.com/504.pdf.)

According to Business Bank President John Guedry, business owners can save more than $73,000 a year with today's interest rates by purchasing a 5,000 square foot professional office/warehouse building versus renting the facility. Over the life of the loan, Guedry says the savings would go up significantly once the depreciation and appreciation of the building are factored into the equation.

"Business owners need to act now if they want to take advantage of the low interest rate environment we're enjoying today," added Guedry. "With the economy turning around faster than most economists predicted, the Federal Reserve Bank may begin to raise interest rates as early as next month. If and when this occurs, rising interest rates mean a greater number of business owners will have a more difficult time qualifying for various types of loans."

The product the bank is using for the special lending program is the Small Business Administration (SBA) 504 loan. As a Preferred SBA lender, Business Bank is working with the SBA to provide borrowers with special loan rates and terms to purchase or construct a building for owner-occupied purposes. Under the 504 loan program, borrowers can finance up to 90 percent of the loan, obtain fixed-rate financing as low as 7.25 percent and take up to 20 years to repay the loan. Conventional financing requires borrowers to put down 25 percent of the value of the property or building, and typically only allows 10 years to repay the loan.

"The various features of the 504 loan are designed to help more business owners qualify for financing who otherwise wouldn't be able to under conventional loan programs," said Mark Phillips, executive vice president and chief credit officer for Business Bank. "This loan program, and the $20 million we've set aside for it, will greatly benefit our local economy. This money will not only help business owners realize their dream of owning a facility versus renting one, it will also help create more jobs and increase the tax revenue for the state."

The SBA 504 loan program is a collaborative effort between the bank and the SBA. Both the bank and the SBA underwrite and process the loan simultaneously, with the bank funding up to 50 percent of the loan and the SBA funding up to 40 percent of the loan, with the remaining 10 percent coming from the borrower as the down payment. The interest rate on the SBA portion of the loan is fixed for the life of the loan, which is 20 years. The bank's portion of the loan is fixed for the first five years and can be adjusted every five years thereafter.

About Business Bank

Business Bank, with over $202 million in total assets as of March 31, 2002, is in its seventh year of operation and is one of the fastest-growing independent banks in Nevada. The bank has four branch offices in the state, with three in the Las Vegas area and one in Carson City. Business Bank is FDIC Insured and is a member of the Federal Reserve Bank of San Francisco. Its stock is listed on the Over The Counter Bulletin Board (OTCBB) at ticker symbol BBNV. Additional information about Business Bank is available at www.bbnv.com.

Forward-Looking Statement 

This release contains forward-looking statements relating to results of operations, product features and benefits, market penetration and market strategies. Such statements are made based on management's beliefs as well as assumptions made by and information currently available to management pursuant to "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements reflect our best judgement, they are subject to risks and uncertainties that could cause a change in focus and direction.