BoeFly Partners With Specialty Lender to Overcome Impending SBA 7(a) Funding Shortfall

NEW YORK - July 23, 2015 - PRLog -- BoeFly, the leading online marketplace connecting small business borrowers with lenders, announced today that it has secured the participation of a bridge lender to solve the impending SBA 7(a) lending suspension, now expected to occur in early August. The bridge lender, Peak Group LLC, a New York-based specialty finance lender, is dedicated to meeting the credit needs of small business owners. The SBA loan shutdown will occur when the SBA reaches its annual congressional loan authorization ceiling. Loans currently in queue for SBA 7(a) funding may not close according to the National Association of Government Guaranteed Lenders (NAGGL), at which time they will need to wait until the new fiscal year commencing October 1, 2015.

“Unfortunately, until October 1st, no new SBA 7(a) loans can be made and that’s where Peak Group comes in to fill the gap and get these loans bridge funded until they can close with the SBA,” said Alvin J. Sarter, co-founder of Peak Group and a BoeFly board member. “Peak intends to solve this temporary gap in the SBA’s funding ability with the least amount of disruption to the small business seeking access to capital.”

“The looming SBA shutdown is a freight train heading towards any small business owner that needs funding from August through October,” said Mike Rozman, CEO of BoeFly.  “BoeFly’s mission is to help business owners get fast, efficient and competitive financing and our response to the 7(a) lending suspension is not to write our Senators as banks have recommended, but rather to find a lender to bridge the gap.”

With Peak Group’s new product – the SBA Shutdown Bridge Loan – qualifying borrowers with commitments from banks for an SBA guaranteed loan will receive funding within days of Peak issuing its own commitment. Additionally, borrowers using BoeFly’s proprietary bQual tool who prequalify for a loan with one or more of BoeFly’s participating lenders will also be eligible for a Shutdown Bridge Loan. The loan will require no additional documentation beyond what the borrower submitted to the bank and will be refinanced without a prepayment penalty once SBA 7(a) lending resumes and the bank funds the loan.

Peak will only be accepting applications through BoeFly.

“The looming shutdown presents challenges for business owners; to address this we’ve established a pre-shutdown queue so business owners with current financial needs can enjoy the peace of mind that comes with knowing that their credit needs won’t be left to the whim of our politicians,” said Rozman.  Business owners can register for the pre-shutdown queue by completing a registration form at www.boefly.com/SBAshutdown.  Lenders can register their borrowers on the site and these lenders will have exclusive access to refinance out Peak’s SBA Shutdown Bridge Loan once they are again able to fund the borrower with an SBA insured loan.

BoeFly will be hosting a free webinar to discuss this program on Wednesday, 7/29/2015 at 2:00 ET. To join, register at http://attendee.gotowebinar.com/register/6414519318653360898.


About BoeFly

BoeFly helps prospective and existing small business owners secure fast, efficient and competitive financing through its on-line matching platform, which connects borrowers with lenders from among its more than 5,000 participating banks and specialty finance companies. Lenders benefit by being presented with only those loan requests that fit their lending profile, dramatically lowering their cost and time of origination.

BoeFly is the leading franchise lending solution, having supported franchisees from more than 395 unique franchise brands since 2014, including Carl’s Jr., Meineke, Jamba Juice and Kiddie Academy.

Founded in 2010 by small business owners and small business lending experts, BoeFly’s marketplace has accommodated over $4.5 billion in transactions. For more information, visit www.boefly.com.