Business Case Studies & Business Publications

Tostadas, Tortilla Chips, and Bank Loans...

Fairchild, Gregory...

Case

Tostadas, Tortilla Chips, and Bank Loans: Wells Fargo and Salinas Y Salinas

Fairchild, Gregory B.; Carrales, Catharine

S-0104 | Published September 16, 2003 | 22 pages Case

Collection: Darden School of Business

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This case is designed to illustrate the methods that small-business lenders use to evaluate the creditworthiness of potential commercial borrowers. It is set in South Central Los Angeles, the commercial loan officer is of Mexican descent, and the potential borrowers are Mexican immigrants. The unique setting allows students to evaluate the creditworthiness of the borrower, while discussing many of the nonfinancial considerations that accompany the lending process. The case explores several issues, including immigration, urban development, and the challenges facing mainstream banks trying to expand into new markets.