Credit Crunch Not Affecting Zions Bank's Ability to Maintain Role as Top Lender to Small Businesses in Utah

At a time when questions are being raised about banks' willingness to make loans, Zions Bank approved 754 SBA 7(a) loans inUtah totaling nearly $59.2 million for the fiscal year ended Sept. 30, 2008. These loans represent 27 percent of the 2,702 SBA-backed loans approved in the state during fiscal year 2008.

"While the media and consumers are expressing concern about banks lending money during the credit crunch, Zions Bank is proud to continue to demonstrate our institution-wide commitment to supporting small businesses as they build and drive our economies," said Zions Bank President and CEO Scott Anderson.

In addition to its No. 1 ranking in SBA lending, Zions Bank also leads all other financial institutions inUtah in marketing SBA loans to women- and minority-owned businesses. During fiscal year 2008, 40 percent (or 308) of the SBA loans approved by Zions Bank were to women and minorities. Zions Bank made 57 loans to minority-owned businesses, and 251 loans to businesses owned entirely or partially by women. Additionally, 22 percent of the total Utah SBA loans closed by Zions Bank in 2008 were made to rural businesses.

SBA 7(a) loans are the most basic and most used type of loan in SBA's business programs. The loan's name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. The SBA 7(a) loan program offers up to 25-year, fully amortized loans that result in lower monthly payments for the borrower. Proceeds from the 7(a) program may be used for most business purposes, including the purchase of real estate for business operations; construction, renovation or leasehold improvements; acquisition of furniture, fixtures, machinery, and equipment; purchase of inventory; and, working capital. In this decade alone, Zions Bank has administered 4,596 SBA 7(a) loans totaling $375.9 million.

Nationwide, small firms with fewer than 500 employees represent 99.9 percent of the 26.8 million businesses in America. Small businesses employ about 50 percent of the private workforce, account for more than half of the nation's private sector output, and are the principal source of new jobs in the U.S. economy. InUtah, about 97 percent of businesses qualify as "small businesses" (businesses with fewer than 500 workers).

To provide entrepreneurs additional support, the Zions Business Resource Center offers small business owners and managers convenient access to information, seminars and workshops. Located at 310 S. Main inSalt Lake City, it provides multi-media business resources, including a computer lab for research and for writing business plans, a library of business startup guides, and other books and publications that offer advice, ideas, and information.

Zions First National Bank, a subsidiary of Zions Bancorporation (Nasdaq: ZION), isUtah's oldest financial institution, and is the only local bank with a statewide distribution of branches, operating 115 full-service branches throughoutUtah. Zions Bank also operates 25 full-service branches inIdaho, and nearly 200 ATMs throughoutUtah andIdaho. In addition to a wide range of traditional banking services, Zions offers a comprehensive array of investment and mortgage services, and has a network of loan origination offices for small businesses nationwide. The company is also a leader in providing electronic banking services, including electronic municipal bond trading. Founded in 1873, Zions has been serving the communities of the Intermountain West for 135 years. Additional information on Zions Bank is available at http://www.zionsbank.com.

SOURCE Zions First National Bank

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