Small Business Financing.
The Small Business Administration (SBA) does not loan money. They guarantee a portion of the financing provided by a lending institution. The SBA has a system whereby lenders that have qualified under the SBA Guidelines can receive one of two designations, one is Certified Lenders Program (CLP) they receive an expedited process for processing loan applications, the other is the Preferred Lenders Program (PLP) these are the most experienced lenders and receive the authority to process, close, service, and liquidate most SBA Guaranteed loans without prior SBA review.
We have had several clients that have contacted us and have told us their SBA 7a loan had been denied. They thought that the SBA had turned them down or rejected the loan application. In reality the bank turned the loan down not the SBA and had not communicated to the borrower that fact. We have completed new SBA loan packages for clients that had been turned down by one bank and presented loans to another bank that approved them and closed the SBA 7A loan.
The thought that the banks are going to assist you in completing the SBA loan application process and complete the SBA compliant loan package for you is so far from fact. In theory it sounds good but the simple fact is the banks will not devote the time to compile and package the necessary information required to evaluate the creditworthiness of a borrower. I had a new client come to the office with a package of documents that a large national bank gave them when they went to the bank to inquire about an SBA 7a loan for their business. The banker gave them 55 forms to fill out and told them to come back when they were all filled out. How discouraging that was to the client. There were no guidelines or instructions to assist the potential borrower in completing the loan package.
We completed the loan package in six days and had it ready to present another local bank that approved the loan. The bottom line here is do not get discouraged by the lack of interest by your banker. There are companies and associations that can help you navigate the quagmire of paperwork necessary to create financial health for your business.
The SBA was established to provide access to capital for creditworthy borrowers that are having trouble obtaining loans on terms and conditions that are available elsewhere. The SBA process is more complicated than conventional transactions but the positives far out way the SBA loan process. There are experts available to assist in making the process easier for the borrower and give borrowers the highest chance for securing a government guaranteed loan.
American Association of Government Finance (AmAGF) specializes in SBA loan packaging & loan placement to help complete the process of getting the Small Business Financing you need.
Contact us at our website www.amagf.org and fill out an eligibility consultation (quick qualifier) to see if you are eligible.
Or call 877-912-6243 or email rowen@amagf.org for any questions you might have.
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