Why small-business loans are a win-win for women-run startups and smaller banks


Kari Mathes has always been an avid bowler, and her hometown of Pittsfield, Mass., boasted a number of bowling alleys, including one with 50 lanes of traditional ten-pin bowling that ran games 24 hours a day. But after the General Electric
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plastics plant in town closed down in the early 1990s, local businesses — including bowling alleys — struggled.

In 2022, Mathes led an effort by her family to work with Berkshire Hills Bancorp
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to secure a loan guaranteed by the Small Business Administration in order to buy an old pin-bowling alley and reopen it as K&M Bowling.

The Mathes family put together a business plan and contributed plenty of sweat equity, and now K&M Bowling — named after Kari and her husband, Mark Mathes — will celebrate its one-year anniversary in March.

The 14-lane bowling alley employs 11 people. And it’s always packed.

“We’re turning people away,” Kari told MarketWatch.

The SBA loan for K&M Bowling is part of a trend: SBA loans to women-led business have risen in recent years as banks focus on ways to reach women borrowers, who they see as a growth opportunity.

Kari Mathes, co-owner of K&M Bowling in Pittsfield, Mass., received an SBA loan to launch the business.


Carrie Snyder & The Berkshire Eagle/photo supplied by Berkshire Hills Bank

The SBA provides a way for banks — especially smaller banks — to reach entry-level customers and to use their experience with and knowledge of local markets to compete with larger banks for customers.

The SBA said its lending to women-owned businesses through its two main lending programs — 7(a) loans and 504 loans — rose to $5.18 billion in 2023 from $4.7 billion in 2022 and from $3.21 billion in 2020. In 2021, lending to women hit $5.72 billion due in part to pandemic-related government stimulus programs.

Meanwhile, in 2023, financing through SBA-licensed Small Business Investment Companies for businesses owned by women, minorities and veterans increased by 25% over the previous year.

Berkshire Hills Bancorp
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whose 44 Business Capital unit specializes in SBA loans, cites an award it won in 2023 for its SBA lending to women-led business in Massachusetts. “Berkshire Bank recognizes the importance of women-owned small businesses to the country’s economic landscape,” said Greg Poehlmann, senior vice president of 44 Business Capital.

In addition to its loan to K&M Bowling, 44 Business Capital has financed women-owned businesses including boutique fitness and childcare businesses, legal firms and building-supply companies.

More women entrepreneurs have been opening businesses as part of the so-called great resignation, with people voluntarily leaving their full-time jobs to strike out on their own, said Maggie Ference, SBA director at Columbus, Ohio-based Huntington Bancshares Inc.
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 This trend has picked up in the wake of the pandemic as more people wanted to work from home or simply to work for themselves.

Huntington, the largest SBA lender in the U.S., has a mission to improve access to capital for women, people of color, veterans, Indigenous peoples and others who have historically faced challenges in obtaining loans, Ference said.

“We’ve seen an increase in volume and lending to women,” she said. “Women are saying, ‘I’m doing this for myself,’ and they’re creating jobs. Since COVID, we’ve seen a reinvigoration of the entrepreneur’s space.”

Huntington’s SBA program also fits with the bank’s emphasis on helping small business and cultivating ongoing relationships with them. Many of the bank’s SBA borrowers have been able to move into commercial loans and other products.

Since 2020, the bank’s Lift Local SBA program has written $89 million in loans, including $28.9 million for women-owned businesses.

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Nitin Mhatre, chief executive of Berkshire Hills Bank, center, with Ben Sosne, executive director of the Berkshire Innovation Center in Pittsfield, Mass., right, and Lori Gazzillo Kiely, director of the Berkshire Bank Foundation.


Berkshire Hills Bank

Nitin Mhatre, chief executive of Berkshire Hills Bank, said that while the bank ranks 125th in the U.S. with $12.4 billion in assets, it has historically ranked in the top 20 in SBA lending.

The loans expand the options the bank can offer clients and also diversify its loan portfolio. SBA loans are also “incredibly aligned” with the bank’s effort to financially empower businesses, communities and individuals, he said.

“It allows us to say ‘yes’ in cases where we otherwise couldn’t have,” Mhatre said. “SBA gives us access to new clients and new relationships to build on.”

And in many cases, the bank gets to see the benefit of its loan close to home, as in the case of K&M Bowling.

“It’s good to see how they’ve been able to plant seeds and see them grow,” Poehlmann said.

After Kari Mathes and her family heard about the SBA loans offered by Berkshire Hills, they started thinking about applying for the federally guaranteed, taxpayer-funded loan program.

They also spoke to two other banks, but those institutions didn’t show the same enthusiasm for the project as Berkshire Hills did. And because they thought the SBA loan seemed like a better fit for their new business, they didn’t consider commercial loans.

Nowadays, K&M Bowling is filled with bowlers, including serious league players and part-timers, Mathes said. Last summer, local bowler Andrew Robitaille placed second in the Junior Gold Championships in Indianapolis. 

Mathes and her family are now thinking about adding a mini-golf course at the back of the property. For the time being, Kari is still working as a licensed mental-health counselor and her husband Mark continues to work as a maintenance technician at a limestone business, but they hope to make the bowling alley their full-time job one day.

And their relationship with Berkshire Hills Bank continues: The bank’s local branch managers chose K&M Bowling as the venue for their holiday gathering last year.

“We were a family business, and Berkshire made us feel like we were part of their family,” Mark Mathes said.  



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