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Eric Jon Simmons, Vice President of Lending | SouthStar Bank Harker Heights
Eric Jon Simmons has joined the SouthStar Bank Harker Heights team as a Vice President of Lending. Eric Jon holds more than two decades of experience in the finance industry developing a diverse expertise including Mortgage Originations, Sales Leadership, and Call Center Management. Eric was educated at Central Texas College in Broadcast Journalism and received additional education specific to Real Estate and Insurance. In his career, Eric Jon has successfully originated loans across both the wholesale and retail sectors. He finds great joy in helping clients on the verge of realizing their dreams. As a home loan expert, Eric Jon dedicates himself to helping families identify the ideal loan that aligns best to their unique needs as they embark on their homebuying journey. Eric Jon is eager to make a positive impact within the community and join a team that also prioritizes its communities.
A Self-Directed IRA (SDIRA) can be a powerful tool for those looking to diversify their retirement portfolio beyond traditional stocks and bonds. With the freedom to invest in real estate or other qualifiable assets. A Self-Directed IRA offers greater control, but also greater responsibility. Without proper guidance, it’s easy to make costly mistakes that can lead to penalties or even disqualification of your IRA.
Here are five common mistakes consumers make with Self-Directed IRAs—and how you can avoid them.
1. Engaging in Prohibited Transactions
One of the most common (and serious) mistakes is violating the IRS rules around prohibited transactions. These include buying or selling assets between your IRA and “disqualified persons”—such as yourself, your spouse, parents, children, or any entities they control. For example, you can’t use your Self-Directed IRA to buy a property that you or a family member lives in. Doing so could disqualify your entire IRA and trigger heavy taxes and penalties. Please abide by IRS guidelines to avoid prohibited transactions.
2. Failing to Understand IRS Rules and Compliance
Unlike traditional IRAs, Self-Directed IRAs require you to stay informed about compliance regulations. The IRS has specific rules about valuation, recordkeeping, and annual reporting. If you fail to provide accurate valuations or don’t maintain proper documentation, your account could fall out of compliance. Checkbook style IRAs allow account holders flexibility, but it is your responsibility to ensure your investments remain compliant and properly reported.
3. Overlooking Due Diligence on Investments
Because Self-Directed IRAs allow investment in nontraditional assets, the burden of research falls squarely on the account holder. Unfortunately, this can lead to investing in high-risk or fraudulent opportunities. Before committing your retirement funds, thoroughly vet each investment opportunity. Review financial statements, verify ownership, and assess long-term viability. If something seems too good to be true, it often is.
4. Neglecting Liquidity Needs
Self-Directed IRAs often hold illiquid (cannot be sold or exchanged quickly) assets like real estate or private equity. While these investments can yield strong returns, they can also create challenges when it’s time to take required minimum distributions (RMDs) or cover unexpected expenses. It’s important to maintain some liquid assets within your IRA to ensure you can meet obligations without forcing the flash sale of long-term investments.
5. Doing It Alone Without Professional Guidance
Managing a Self-Directed IRA can be complex. From IRS compliance to asset management, there are many moving parts that can trip up even seasoned investors. Working with your SouthStar Bank experts can help provide some oversight and structure needed to keep your account on track.
At SouthStar Bank, we believe that every customer deserves the freedom to shape their financial future, without unnecessary risk. Whether you’re exploring real estate investments or diversifying your retirement portfolio, our experienced team can help guide you through the process with personalized support and trusted service.
SouthStar Bank does not provide tax, legal or investment advice. Any information communicated by SouthStar Bank is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or legal counsel.
When it comes to teaching kids about money, starting early makes all the difference. One of the best tools parents in Texas can use to help their children build a strong financial future is a child savings account. At SouthStar Bank, we believe in making banking accessible, educational, and rewarding for families. Opening a savings account for your child provides long-term benefits that extend far beyond simply setting money aside; it lays the foundation for lifelong financial responsibility.
1. Building Financial Literacy from an Early Age
A child savings account provides kids with a hands-on opportunity to learn about money management. By watching their balance grow with each deposit, children start to understand the value of saving and the rewards of patience. This type of financial literacy is a skill they’ll carry into adulthood.
2. Teaching Goal-Setting and Responsibility
Whether your child is saving for a new bike, a college fund, or simply learning to save, having a dedicated account makes their goals more tangible. A child savings account helps children see the connection between discipline and rewards. Each deposit reinforces responsibility and encourages positive financial habits that will benefit them for years to come.
3. A Safe Place to Grow Savings
Unlike a piggy bank or cash tucked away at home, a savings account at SouthStar Bank offers safety and security. Funds are federally insured, providing parents with peace of mind as their child’s savings steadily grow.
4. Strengthening the Parent-Child Connection
Opening a savings account together provides a shared experience for parents and children. Visiting your local SouthStar Bank branch to make deposits or track balances online can turn into valuable teaching moments. These experiences help kids feel proud of their financial accomplishments while allowing parents to guide them every step of the way.
5. Preparing for the Future
From school expenses to college tuition, savings can play a critical role in a child’s future. A child savings account at SouthStar Bank makes it easier to plan for the future. Starting small today can create a foundation for future financial stability, helping children be better prepared for the responsibilities of adulthood.
6. Local Support You Can Count On
As an actual Texas bank with 105 years of experience in our communities, SouthStar Bank is dedicated to serving families with Southern hospitality and a personal touch. Our team makes it easy for parents to open an account, explain savings to their children, and keep the process stress-free. We take pride in being more than just a bank; we’re your partner in building a brighter financial future for your family!
Opening a child savings account with SouthStar Bank is more than a financial step—it’s an investment in your child’s future. From building strong money habits to providing a safe place for savings to grow, the benefits are lifelong. Visit your nearest SouthStar Bank branch today to get started and give your child the gift of financial confidence.
For many entrepreneurs, access to the right financing is the key to growing and sustaining a successful business. Whether you’re looking to expand, purchase equipment, or buy commercial real estate, the U.S. Small Business Administration (SBA) offers several loan programs to support small business owners.
At SouthStar Bank, we’re proud to be an SBA-Preferred Lender, which enables us to approve loans in-house and streamline the process. If you’re searching for SBA loans in Texas, our team is here to help guide you toward the program that best fits your needs.
SBA 7(a) Loan Program
The SBA 7(a) Loan is the most popular and flexible option available to small businesses. With loan amounts up to $5 million, it can be used for a wide range of purposes, including:
Debt consolidation
Equipment purchases
Working Capital
Business acquisition
Commercial real estate purchases or construction
The extended repayment terms, often ranging from 10 to 25 years, make the SBA 7(a) loan a powerful tool for business owners seeking to manage cash flow while pursuing growth.
SBA Express Loan
The SBA Express Loan offers a faster approval process, with a more limited underwriting scope; however, this varies from lender to lender based on internal processes. While similar to 7(a) loans, Express Loans have a maximum loan amount of $500,000, but similar uses and terms are available. This program supports a Revolving Line of Credit option.
This program is ideal for Texas small businesses needing quick access to working capital or short-term financing opportunities. The SBA Express Loan combines speed with flexibility, giving you the funds to seize opportunities when they matter most.
SBA 504 Loan Program
SBA 504 Loans provide financing for owner-occupied commercial real estate and equipment, which are considered fixed assets for expansion and modernization. More specifically, this includes:
Purchasing existing buildings
Acquisition of land
Ground-up construction
Financing building improvements
Equipment acquisition
Refinance and cash-out opportunities (that meet program requirements)
As such, they offer long-term, fixed-rate financing at below-market rates. This type of loan requires a minimum down payment of 10%. An SBA 504 Loan promotes business growth and job creation by expanding capital access. This specialized program brings two separate lenders together – in this case, SouthStar Bank and a Certified Development Company (CDC). CDCs are nonprofit corporations dedicated to promoting economic development within their communities.
Other SBA Loan Options
Beyond the 7(a), Express, and 504 programs, the SBA also offers additional options to meet specialized needs:
CAPLines: Revolving lines of credit for working capital.
Export Loans: Support for businesses expanding into international markets.
Microloans: Up to $50,000 for startups or smaller capital requirements.
Disaster Loans: Assistance for businesses recovering from declared disasters.
NEW– Manufacturers Access to Revolving Credit (MARC)
These programs can provide targeted solutions for unique challenges faced by Texas business owners.
Partner with Your Local Experts at SouthStar Bank
Choosing the right SBA loan depends on your goals, timeline, and financing requirements. As a trusted SBA-Preferred Lender, SouthStar Bank has the expertise and authority to help you secure funding efficiently.
Whether you need funds to expand and grow, purchase large fixed assets, finance your operating gap due to accounts receivable, or purchase your first building, our team is ready to guide you every step of the way.
Found the right SBA Loan for your business? Have any questions? Contact our SouthStar Bank SBA experts at SBA@southstarbank.com or apply today!
Running a small business means wearing many hats—managing operations, building client relationships, and keeping your team motivated. One of the most important responsibilities is finding the right retirement plan for your small business. While large corporations often offer 401(k) plans, small business owners may find SEP and SIMPLE IRAs to be cost-effective, flexible retirement solutions.
At SouthStar Bank, we’re committed to helping Texas business owners build strong financial futures. Here’s what you need to know about SEP and SIMPLE IRA options for small business owners.
What Is a SEP IRA?
A Simplified Employee Pension (SEP) IRA is designed for self-employed individuals and small businesses. It’s one of the easiest retirement plans to set up and maintain, offering high contribution limits and tax advantages.
Key Benefits of a SEP IRA:
High contribution limits: For 2025, you can contribute the lesser of either 25% of the first $350,000 of an eligible employee’s compensation or $70,000.
Employer-funded: Only the employer makes contributions, which can vary each year depending on cash flow.
Tax advantages: Contributions are tax-deductible, reducing taxable income for your business.
Easy setup and administration: Minimal paperwork and no annual IRS filings make SEPs highly suitable for small businesses.
A SEP IRA is a wise choice for solo entrepreneurs or business owners who want flexibility in contributions while keeping administrative costs low.
What Is a SIMPLE IRA?
A Savings Incentive Match Plan for Employees (SIMPLE) IRA is another excellent retirement option for small businesses, especially those with fewer than 100 employees. Unlike SEP IRAs, SIMPLE IRAs allow both employers and employees to contribute.
Key Benefits of a SIMPLE IRA:
Employee participation: Employees can make salary deferral contributions, encouraging them to save for retirement.
Employer match or contribution: Employers must either match up to 3% of employee compensation or make a 2% non-elective contribution.
Lower contribution limits than SEPs: For 2025, employees can contribute up to $16,500, with an additional $3,500 catch-up contribution for those 50-59 and 64 or older. Catch-up contributions for those ages 60-63 are $5,250.
Tax savings: Employer contributions are tax-deductible, and employee contributions are made pre-tax.
SIMPLE IRAs are ideal for small businesses that want to offer retirement benefits as a tool to attract and retain talent.
Which IRA Is Right for Your Business?
Choosing between a SEP IRA and a SIMPLE IRA depends on your business size, goals, and budget. If you’re self-employed or have just a few employees, a SEP IRA offers flexibility and higher contribution limits. If you want to encourage employees to contribute to their own retirement while providing a company match, a SIMPLE IRA may be the better fit.
Partner with SouthStar Bank
At SouthStar Bank, we understand that small business owners need retirement solutions that are both practical and rewarding. Our IRA experts are happy to help you explore IRA options and determine the best retirement plan for your business and employees.
Ready to take the next step? Have any questions? Contact your SouthStar Bank IRA experts today at 512.384.3948 or IRA@southstarbank.com.
Kimberly Moore, Vice President & Branch Manager | SouthStar Bank Shiner
Kimberly Moore has been promoted to Vice President and Branch Manager of the SouthStar Bank Shiner branch. Kimberly has accumulated more than two decades of experience with SouthStar Bank, most recently serving as BSA and AML-CMT Officer, a vital role in fraud prevention and consumer protection. In her new role, she looks forward to being in front of the customers she has dedicated so much time to protecting, as well as engaging further with the community as a whole!
An active community advocate, Kimberly is involved in several local organizations, serving as Vice President of Shiner ISD PTO and the Shiner Band Boosters, as well as volunteering with a local Girl Scout Troop and the Shiner Junior Livestock Show. When she finds time for herself, she enjoys spending time with her friends and family, attending family gatherings and sporting events, as well as supporting her children and all their endeavors. Kim is also never opposed to a cruise or a spontaneous day trip!
