SBA & USDA Lending Solutions

without hiring staff or incurring capital expenditures

3 Strategies for Leveraging an SBA Lender Service Provider (LSP)

A lender service provider (LSP) is a strategic partner used by banks and non-bank lenders to add staff and scale to their lending departments. 

SBA LSPs provide lenders with the tailored support, infrastructure, and expertise needed to successfully operate in the SBA landscape.

Windsor Advantage primarily works with lenders in one of three capacities:

  1. Full-Service SBA Lender Service Provider
  2. Strategic Operational Support on a By-Service Basis
  3. Experimental Arm to R&D Test the SBA Loan Product and Market Fit

This article explains the types of strategic partnerships available to lenders through Windsor Advantage’s LSP model and provides guidance for selecting the best partnership for your institution’s lending goals.

SBA LSP for Full-Service Partnership

A full-service lender service provider (LSP) is an on-demand SBA department. This type of partnership is ideal for lenders that need to immediately scale in the SBA space with a dedicated SBA branch.

This type of partnership adds full-time SBA experts to your team at every step of the loan pipeline. The LSP’s experts take deals from start to finish, ensuring SBA compliance from initial eligibility to closing and beyond. An SBA LSP partnership allows you to fully outsource operations, with as little or as much involvement from your team as you’d like.

Benefits of a full-service SBA LSP partnership include:

  • Streamlined efficiency throughout the loan pipeline
  • Dedicated SBA customer support to enhance borrower experience
  • On-demand access to experienced SBA professionals for your team and borrowers
  • Improved regulatory compliance and peace of mind
  • Reduced strain on internal resources and overhead costs

In short, a full-service LSP is the solution for going from 0 to 100 in the SBA space within a few days of onboarding.

SBA LSP as Operational Support

An SBA lender service provider can also add operational support for specific services needed to complete or reinforce your SBA loan department.

Using an LSP for strategic operational support is ideal for lenders with an existing SBA department, but who may need to ‘staff up’ certain desks. At Windsor, we offer new and existing clients the option to utilize the LSP on a service-by-service basis as an alternative or add on to a full-service LSP agreement.

Underwriting is one of the most popular solutions that lenders utilize through Windsor Advantage. Your success as an SBA lender is dependent on your ability to maintain and evolve with the SBA’s complex compliance standards. Outsourced SBA Underwriting through an LSP enables your institution to add full-time SBA experts to your team through a cost-variable solution.

Other areas that an LSP can provide operation support include:

Additionally, our team developed ACCEL: a small loan fintech platform to support lenders in scaling production of SBA loans amounting $500,000 or less. This branch offers dedicated support just for small loan underwriting to help lenders strategically scale in a growing niche of SBA ‘Small Loan’ lending.

Leveraging an LSP on a strategic service-based agreement frees your institution to take just the support you need. Enable your internal team to focus on their strengths and rely on SBA experts to do the rest.

SBA LSP as R&D for SBA Lending

An LSP can also be utilized to test the SBA product fit at your institution. As you build your strategy, the LSP becomes a valuable source of data and feedback on specific markets, transaction types, and industry segments to target as you grow your pipeline. It’s an ideal solution for lenders who need to gain initial traction in the SBA space before investing in fully scaling a department.

Using an LSP as a temporary solution for launching an SBA department sets lenders up for strategic long-term growth while minimizing risk and instilling confidence in your institution.

Partnering with an SBA Loan Lenders Service Provider (LSP)

For lenders looking to compete on a larger scale without straining their internal resources, an LSP can be the key to grow in the SBA space. With a full team of SBA experts at your disposal, you can tackle even the most complex SBA transactions with confidence.

Choose a partnership that aligns with your institution’s lending goals, and you’ll be well on your way to success in the SBA landscape. 

We’ve tailored our SBA LSP partnerships to fit the unique needs of SBA lenders nationwide to help institutions scale with confidence. Learn more about becoming a partner by completing the contact form below.

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