Small Business Administration Lending Programs

More and more small businesses rely on the flexible lending programs offered through the Small Business Administration (SBA).

Credit Unions are in a good position to meet this growing demand, and the NCUA is working closely with the SBA to coordinate regulations to empower credit unions to participate fully in the popular 504 and 7(a) programs.

The guaranteed portion of these loans doesn’t count against the NCUA imposed 12.25% MBL cap, and can be sold to the investor market for a premium.

MBS has the expertise and the software systems you will need to serve this market. SBA loans must be documented, monitored, and reported properly, or the SBA guarantee can be voided.

MBS will assemble and submit a completed application to the SBA that will allow your credit union to be a licensed SBA lender. Then MBS will manage your SBA program to ensure compliance.

Don’t make the mistake of offering SBA loans as your only source of business loans. Not every borrower will qualify for SBA financing and not all SBA terms and requirements will be acceptable to your members.

A successful business lending program uses SBA financing as a tool, not as the tool chest.

SBA Website - www.sba.gov