WASHINGTON — A new rating system from the Small Business Administration that ranks lenders portfolio performance will go into effect June 15.
The lending rating system would measure the aggregate strength of SBA's overall 7(a) and 504 loan portfolios and to assist the agency in managing the related risk. SBA plans to use the lender rating system to make more effective use of its on-site and off-site lender review and assessments resources. According to SBA, the agency would assign each lender a composite ranking based on the agency's assessment of the potential risk to the government of that lender's portfolio performance.
The composite is based on problem loan rate, 12-month actual purchase rate, three-month change in the small business predictive score and projected purchase rate derived.
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