SBA 7(a) loans can be an incredibly effective tool for banks and credit unions to provide capital to small businesses. However, the regulations surrounding eligibility can be difficult to understand for even the most experienced commercial lender. The 7(a) program provides a deficiency guarantee of up to 90% (generally 75%), but many factors impact whether
Lenders have discovered the benefits of the SBA 7(a) Loan Program and are making loans at a record pace. As the below chart illustrates, total dollar volume hit a three-year high of $25.45 billion in FY 2017 (as of September 30, 2017). At the same time, the number of lender participants has dropped to 1,978
Since 2010, Windsor Advantage has processed more than $2.0 billion in SBA 7(a) and USDA loans and we currently service a portfolio of more than $1.1 billion of government guaranteed commercial loans (as of May 31, 2018). This experience provides us with a unique perspective that we leverage to help lenders achieve success through an
We recently explored the benefits of outsourcing an SBA department back-office in 3 Reasons to Outsource Your SBA Department to a Lender Service Provider. Outsourcing to a Lender Service Provider (LSP) allows lenders to create an efficient and effective SBA and USDA program without many of the quantitative or qualitative risks associated with implementation and
To illustrate the top reasons to outsource your SBA department, let’s start with 3 situations to avoid: Scenario 1 – Economic Risk: You’ve already made a significant investment in the people and systems necessary to offer SBA loans. Costs were higher than originally expected and additional expenses continue to build. You’re seeing some volume, but
Competition for quality small business borrowers is only getting fiercer. Projects and industries that were formerly “off limits” are now pillars of some bank’s lending strategies (think hotel lending). Businesses are demanding terms that even a few years ago were unfathomable. Finding a unique value proposition is imperative to compete for strong borrowers in this