The SBA 7(a) Loan Program authorizes the SBA to guarantee loans made by lenders to small-businesses “for whom the desired credit is not otherwise available on reasonable terms from non-Federal sources”. Common reasons credit might not be available on reasonable terms – referred to as the Credit Elsewhere Test – include (but are not limited
In recent years, many SBA lenders have gained an increased familiarity with the flagship USDA lending program, the Business & Industry Loan Program (B&I). This program offers lenders who operate in rural areas another option to provide customers competitive financing packages for businesses that make a positive economic impact. Some of the key benefits (unavailable
Liquidating an SBA loan can be a daunting task for lenders. When staring at what appears to be an uphill battle, lenders should keep in mind the process outlined in this article along with the SBA’s SOP 50 57 2 to prudently liquidate an SBA 7(a) loan in order to work towards keeping their SBA
SBA 7(a) loan defaults are time consuming and drastically impact the profitability of a lender’s SBA loan program. In this article, we will identify potential areas for repair or denial and discuss best practices to mitigate these areas of potential loss. Before diving directly into the top reasons for repair or denial, let’s take a
Ensuring that a borrower maintains current insurance may not seem like a high priority, but it is critical to mitigate risk in an SBA loan portfolio. In this article, we’ll discuss the importance of requiring borrowers to maintain current insurance, present a brief overview of SBA loan requirements regarding insurance, and specifically address a few
Diligent SBA portfolio management is critical to ensuring that the SBA guarantee remains in place for the duration of a loan. Lenders that fail to utilize a consistent approach in monitoring borrowers run the risk of facing complicated issues that put the guarantee in jeopardy. By adhering to the three below guidelines and taking advantage