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Boost SBA Deal Efficiency

A Case Study

SBA

David Tinsley

March 21 2023

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Introduction:

Lenders Cooperative, a trusted partner in the banking industry, has been instrumental in delivering efficient Small Business Administration (SBA) LSP (Lenders Service Provider) services tailored to the unique needs of financial institutions. This case study highlights our successful collaboration with a reputable $250 million bank in Massachusetts, where we provided end-to-end SBA underwriting services, including deal grooming, eligibility discussions, underwriting and processing, and E-Tran submission, through our LSP model. Through our expertise and comprehensive services, we empowered the bank to optimize their SBA lending operations, ensuring smooth processes, compliance, and improved customer experience.

Background:

Recognizing the importance of SBA lending for small businesses and the complexities involved in navigating SBA guidelines, Lenders Cooperative understands the challenges banks face in efficiently processing SBA deals. These challenges range from deal eligibility assessments and underwriting to adherence to regulatory requirements and E-Tran submission.

Challenge:

The $250 million bank in Massachusetts faced several challenges in their SBA lending operations, including:

  • Deal Grooming and Eligibility: The bank needed assistance in evaluating potential SBA deals, ensuring they met eligibility criteria, and optimizing the deal structure to increase the likelihood of SBA approval.
  • Underwriting and Processing Complexity: Efficiently underwriting SBA loans while adhering to the specific requirements of SBA guidelines, documentation, and processing posed challenges for the bank.
  • E-Tran Submission: The bank required a streamlined process for submitting loan applications and supporting documents electronically through the SBA's E-Tran system, minimizing delays and ensuring timely approvals.

Solution:

Understanding the bank's challenges, Lenders Cooperative provided a comprehensive SBA LSP solution to address their specific needs. The key components of our solution included:

  • Dedicated SBA Experts: Lenders Cooperative assigned a team of experienced SBA underwriters and specialists who possessed in-depth knowledge of SBA guidelines, processes, and documentation requirements.
  • Deal Grooming and Eligibility Assessment: We worked closely with the bank to evaluate potential SBA deals, ensuring eligibility criteria were met and optimizing the deal structure for increased chances of SBA approval.
  • Streamlined Underwriting and Processing: Leveraging our expertise and technological integration, we streamlined the underwriting and processing of SBA loans, reducing time-consuming manual processes and ensuring compliance with SBA guidelines.
  • E-Tran Submission Support: Our team provided guidance and support throughout the E-Tran submission process, ensuring that loan applications and supporting documents were accurately and efficiently submitted through the SBA's electronic platform.

Implementation:

The implementation of Lenders Cooperative's SBA LSP services for the $250 million bank in Massachusetts involved the following steps:

  1. Collaboration Kickoff: We initiated the collaboration by engaging in detailed discussions with the bank's stakeholders to understand their SBA lending goals, requirements, and expectations.
  2. Deal Evaluation and Grooming: Lenders Cooperative worked closely with the bank to evaluate potential SBA deals, assess eligibility, and optimize the deal structure to meet SBA requirements.
  3. Comprehensive Underwriting: Our team conducted thorough underwriting assessments, ensuring compliance with SBA guidelines, and providing detailed analysis and recommendations to support the bank's decision-making process.
  4. Efficient Processing and Documentation: Leveraging technology and streamlined processes, we facilitated efficient loan processing and documentation, minimizing manual effort and ensuring compliance with SBA documentation requirements.
  5. E-Tran Submission: Lenders Cooperative guided the bank through the E-Tran submission process, providing support in accurately submitting loan applications and supporting documents electronically to the SBA.

Results and Benefits:

Lenders Cooperative's SBA LSP services provided significant results and benefits to the $250 million bank in Massachusetts:

  • Increased Efficiency: By leveraging Lenders Cooperative's SBA LSP services, the bank experienced a significant increase in efficiency throughout their SBA lending operations. Our streamlined processes and expert guidance reduced the time and effort required for deal grooming, underwriting, and processing, resulting in faster turnaround times and improved operational efficiency.
  • Enhanced Deal Structure: Our dedicated team of SBA experts collaborated closely with the bank to evaluate potential SBA deals and optimize their structure. Through our in-depth understanding of SBA guidelines and eligibility requirements, we assisted the bank in structuring deals that met SBA criteria, increasing the likelihood of approval and minimizing the risk of delays or rejections.
  • Improved Compliance: Adhering to SBA guidelines and regulatory requirements is paramount in SBA lending. Lenders Cooperative's expertise in SBA underwriting and processing ensured that the bank's SBA deals were compliant with the necessary regulations, reducing the risk of non-compliance-related issues and potential penalties.
  • Seamless E-Tran Submission: The E-Tran submission process can be complex and time-consuming. Our guidance and support throughout the E-Tran submission process enabled the bank to accurately submit loan applications and supporting documents electronically to the SBA, ensuring timely processing and approval.
  • Enhanced Customer Experience: Through our efficient processes and expert guidance, Lenders Cooperative contributed to an enhanced customer experience for the bank's small business clients. By streamlining the underwriting and processing of SBA loans, we helped expedite loan approvals, enabling small businesses to access the funds they needed quickly and efficiently.
  • Cost Savings: By leveraging Lenders Cooperative's SBA LSP services, the bank achieved cost savings in their SBA lending operations. Our optimized processes and expertise reduced manual effort, minimized errors and rework, and ultimately saved the bank valuable time and resources.

Conclusion:

Lenders Cooperative's SBA LSP services played a pivotal role in assisting the $250 million bank in Massachusetts in optimizing their SBA lending operations. Through our comprehensive approach to deal grooming, underwriting, processing, and E-Tran submission, we provided the bank with increased efficiency, improved compliance, and enhanced customer experience. By partnering with Lenders Cooperative, the bank successfully streamlined their SBA lending processes, ensuring a competitive edge in the market and empowering them to support the growth and success of small businesses in their community.

To learn more about how Lenders Cooperative's SBA LSP services can benefit your bank's SBA lending operations, visit our SBA LSP Services page https://www.lenderscooperative.com/sba-lsp-services/.