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Lender Advantage Program
Introduction
The U.S. Small Business Administration (SBA) is pleased to introduce a new 7(a) loan guaranty initiative designed to accommodate the unique loan processing needs of those lenders that do not make SBA 7(a) loans or make very few SBA loans. The program is part of a broader SBA initiative to promote the economic development of local communities, particularly those facing the challenges of population loss, economic dislocation, high unemployment, etc. It is designed to encourage community lenders to partner with SBA by simplifying and streamlining the Agency’s application process and procedures, particularly for smaller SBA loans.
Key Features
- An initiative developed exclusively lenders approving an average of 20 or less SBA loans annually.
- Training and counseling support for new or small volume SBA lenders provided by SBA district offices on 7(a) loan policies and procedures.
- Standard 7(a) loan program, no special authorization is required.
- Guidance from SBA field offices on how to become an SBA lender.
- SBA’s 75/85 percent guaranty applies. SBA may guarantee 85 percent of a loan for $150,000 or less and 75 percent of a loan over $150,000.
- Centralized and expedited SBA processing of routine loans within 3-5 days.
- Lenders transmit applications via facsimile and eventually via a web-based application.
- A simplified SBA loan eligibility questionnaire to help small or new SBA lenders understand SBA’s eligibility requirements.
- Specialized assistance through the Sacramento Standard 7(a) Centralized Loan Processing Center (Center) for eligibility questions and more complex issues.
- A help desk to support lenders participating in this initiative.
Resources
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