Beginning Feb. 15, credit unions and other lenders in the SBA's preferred lender program will be able to approve the agency's new loans to aid underserved communities.

The Small Loan Advantage program, announced in December, offers what the SBA describes as a streamlined application process for 7(a) loans up to $250,000. Advantage loans will come with the regular 7(a) government guarantee, 85% for loans up to $150,000 and 75% for those greater than $150,000.

Any of the 610 financial institutions in the SBA's Preferred Lender Program can approve loans using the new Small Loan Advantage process. Under PLP, which includes most of the agency's highest volume lenders, SBA delegates the final credit decisions to these lenders, the SBA said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lending