SBA Lenders Turn To SBSS For Underwriting Loans
Regarding the Coleman Report last Tuesday, the SBA will be eliminating underwriting of SLA Loans starting July 1, 2014. The SBA is now allowing lenders to make deal decisions solely on a Small Business Credit Score.
Editor; Bob Coleman goes on to explain that the significant changes for underwriting SBA loans less than $350,000 is a motive to get capital in the “hands of entrepreneurs, especially the underserved.” These changes are ultimately meant to help streamline and simplify the lending process so that more borrowers have quick access to business loans.
With the new underwriting process “SBA’s total credit score will make it easier and less time-intensive for banks to do business with the SBA. This model is cost-reducing and credit-based. It ensures that risk characteristics – not socio-economic factors – determine who is deemed creditworthy.”
Small business owners and entrepreneurs can find their Small Business Credit Score at bqual.com
bQual provides borrowers with their Small Business Credit Score which includes their SBSS by FICO, their consumer credit score, full credit report, and a detailed fundability report, in order to see if they pre-qualify for a business loan.
Find out more here: How Does bQual work?