Approval by the lender is the first step in the process, and approval by the SBA should be thought of more as concurrence with the lender’s credit decision.If you determine that the loan is eligible, meets the Credit Available Elsewhere Test, and you can prove that the borrower can meet the minimum debt service coverage ratio requirements, there is a very strong likelihood that the SBA will agree to provide their guarantee.
Approval by the lender is the first step in the process, and approval by the SBA should be thought of more as concurrence with the lender’s credit decision.Tags: Presentation Of Research PaperWp Carey Mba EssaysColumbia Business School Essays 2007Acknowledgement For Research PaperEssay ConclusionsSchool Essay Of MexicoAn Essay About The Church Bombing In Alabama In 1963
The cash flow of the Small Business Applicant is the primary source of repayment, not the liquidation of collateral.
Thus, if the lender’s financial analysis demonstrates that the Small Business Applicant lacks reasonable assurance of repayment in a timely manner from the cash flow of the business, the loan request must be declined, regardless of the collateral available or outside sources of cash.
, we looked at the mission and original intent of the SBA.
This background is helpful for understanding the lens through which the SBA determines eligibility and approval of loans.
In addition to the “normal” underwriting information, there will be a handful of forms the borrower and guarantors will need to complete.
VITAL uses state-of-the-art technology to assist our clients in providing them with detailed checklists to ensure nothing is missed in the information gathering process.
Whenever someone asks me this, my first question is “Will your institution approve this loan?
” My second question is, “If so, why do you believe you need a SBA guarantee?
It is easier to tell you what is not an eligible use of funds.
When working with our clients on a new loan opportunity, we always want to ensure the loan is eligible as early in the process as possible.