Top SBA Lenders Focus on Technology as Key Differentiator Welcome to our 2018 SBA 7(a) Loan Market Outlook, an annual forecast of key market dynamics based on the best data available at the time of publication. As our strategic discussions with lenders focus on the SBA loan market and trends we see unfolding in the
SBA 7(a) loans can be a beneficial asset class for lenders, but it requires an intimate knowledge of the process and rules that govern the Program. There are many nuances to SBA loan servicing compared to conventional loans and certain areas can easily be overlooked, creating issues that can be complicated to unwind. When not
Growth in SBA 7(a) loan sales has closely followed the growth in SBA 7(a) loan fundings every year since 2012. The chart below illustrates that in fiscal 2017 a record 16,700+ SBA 7(a) loan guarantees were sold for roughly $9.3 billion in principal. (Source: Colson Services Corp.) Lenders participate in the 7(a) secondary market for
Processing a 7(a) loan through the General Program can seem like a daunting task. The thought of an SBA Specialist combing through the intricate details of a loan and issuing an SBA loan screen out spurs questions of timing and often uncertainty about eligibility. A “screen out” is the official issuance of questions from the
Delegated Authority and General Program (GP) loans both play a vital role in the success of small businesses and the SBA Program on an annual basis. As a Lender Service Provider for more than 75 banks and credit unions nationwide, Windsor works with delegated and non-delegated lenders, both of which utilize the General Program strategically.
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