February 15th at 10:00 am Central Updates & Tips presented by Michelle Torres, Lender…
LEVERAGE Business Lending was established to be a loan service provider, which assists in the packaging, underwriting, closing, and servicing of Small Business Administration (SBA) loans. By teaming with LEVERAGE Business Lending, credit unions gain access to experienced SBA loan processing and servicing operations that allows them to reap the benefits of SBA lending without any additional infrastructure.
Here is what SBA loans can do for you:
• In a period of tightening lending margins, participation in the SBA loan programs increases net interest
margins and fee income.
• SBA commercial loans can reduce risk both through low LTVs (504 loans) and the guaranty of the federal government (7(a) loans). Credit unions will be making sound commercial loans at improved margins.
• Guaranteed funds from the SBA (75-90 percent of the total loan amount) do not count towards the regulatory MBL cap.
• In a period when some financial institutions are shrinking their market share, due to additional perceived risk in commercial loans, credit unions can actually increase market share by providing SBA loans.