Surprise its Wells Fargo! They have been very aggressive when it comes to expanding their small business lending. Last year the bank made a decision to expand underwriting for the SBA 7a loan program. This loan is guaranteed by the U.S. government for up to 90% of the loan amount. This has helped Wells Fargo capitalize on the down fall of the bigger competitors. You can read more about the Best SBA 7a Lender here http://www.sbaloans-
How did Wells become number one?
The simple answer is they do not sell off the loans to the secondary market. It is a story that has been told countless times in the past 12 months. The way most banks work is they underwrite an SBA 7a loan, and then when the loan is funded they package it up with other SBA loans and sell them on the secondary market. After the sale of the loans goes through they take a percentage of the money for profit and lend the rest. Everything works great until you can’t find anyone will to buy your loans on the stock market. The lenders in this situation are in big trouble and many have been sold or are no longer in business.
How to go about getting an SBA 7a Loan.
The SBA has many loans that come with the backing of a guarantee. The best way to find out if you’re a candidate for the 7a loan program is to visit http://www.sbaloans-
What’s next?
First make a decision to get a loan. We have all experienced the collapse of the financial markets this year and you may not have an opportunity to get capital in the future. Even if you do not need the money, get prepared and talk to your banker. You never know when you may need the funds and the opportunity could pass you by.
Second educate yourself on the different SBA loan program. If you do not qualify for the 7a learn about the program that you could get a loan through and work on getting the qualification that you need to receive funding.
