Print Page   |   Contact Us   |   Your Cart   |   Report Abuse   |   Sign In
News & Press: Arizona Business News Updates

Speeding loans to entrepreneurs

Monday, July 21, 2014   (0 Comments)
Share |


As regional administrator for Region IX (covering Arizona, California, Guam, Hawaii and Nevada) of the U.S. Small Business Administration it's my job, and the job of the agency, to try to help as many small business owners and entrepreneurs as possible access the capital they need to start or grow their business.

We know we've made gains in expanding our programs, but there is still more to do to make sure SBA loans are available to every business owner who needs one to start or grow a business. Underserved communities in particular still have trouble accessing the capital they need to achieve their dreams.

When Administrator Maria Contreras-Sweet started on the job in April, she made clear that improving access to capital for the underserved would be a top priority. That's why we're pleased to announce that under her leadership we are transforming our guarantee process to serve America's small businesses — and the entrepreneurs behind them — better.

In an effort to streamline and simplify our loan application process, we're streamlining our underwriting by making a total credit scoring model we've been testing and refining for over a decade available to all of our lending partners on loans of $350,000 or less. These changes are going into effect this month.

The SBA total credit score combines an entrepreneur's personal and business credit scores and makes 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.

Along with this simplification, we're eliminating requirements for time-consuming analyses of a company's cash flow on small loans under $350,000, a step that can delay loan decisions.

Additionally, at the beginning of this fiscal year in October, we set fees to zero on loans of $150,000 or less, another way to reduce the costs for lenders of making small-dollar loans.

Why does this matter? Because often times, the smaller or newer the business, the smaller the loan. And as these businesses grow, they will come back for additional loans, creating jobs along the way. So encouraging lenders to make more small-dollar loans is good for the economy, it's good for businesses, and it's good for our communities.

These changes make sense. They are another step in our efforts to modernize our lending process and bring it up to pace with the high-tech era we live in. They will make it easier and less time-intensive for banks to do business with the SBA.

We're making these changes knowing that it will simplify and streamline the lending process, which will incentivize banks to make more small-dollar loans in order to get more loans into the hands of traditionally underserved entrepreneurs.

We know that the key to a strong and lasting middle class is opportunity for all. President Barack Obama has made it clear that we must grow our economy from the middle out. Key to that is access to the American Dream of starting and owning your own business. By making SBA loans easier and more affordable, more lenders will join our program, more small businesses will have access to our lending products, and more entrepreneurs will succeed.

Entrepreneurs and small businesses are not only the economic backbone of the country, they are also the heart and soul of America and our communities. At the SBA, we will continue to work diligently for small businesses at every stage to provide more access to capital, contracting opportunities and counseling assistance they need to start, to grow and to innovate.

So encouraging lenders to make more small-dollar loans is good for the economy, it's good for businesses, and it's good for our communities.

Source: The Fresno Bee



Arizona Speaks: Business & Technology

REGISTER

Date: Friday, September 30
Time: 7:00 AM - 9:30 AM
Location: Arizona Biltmore, Phoenix

RSVP

ASBA's MEGA MIXER (Tucson)

REGISTER

Date: Thursday, September 29
Time: 4:00 PM - 7:00 PM
Location: Westin La Paloma Resort & Spa, Tucson

Get $5k-$20 in Free Marketing: Make 2016 Your Year for Success!

In Business Magazine

Use In Business Magazine as a tool to reach your customers for 2016. Through Print, Online, Social Media, Email & Events, you can realize an additional $5k to $20k in free advertising with In Business Magazine over 2016.

LEARN MORE

Small is the New Black

ThinkSmallBiz

What’s trending for 2016? Small Business! This year, resolve to support our local economy by “Thinking Small” at least one time each week! Need help finding a small biz? Visit ThinkSmallBizAZ.com! #ThinkSmallBiz

LEARN MORE

Allowing you to concentrate on what’s really important.

Low and Johnson Inc.

We understand the insurance needs of locally-owned businesses because we’re one, too. As an ASBA member backed by CNA, we’re dedicated to helping small businesses like yours safeguard all you've worked so hard to build.

LEARN MORE

RSVP

ASBA 101

REGISTER

Date: Held monthly
Time: Click to check times
Location: Phoenix or Tucson

RSVP

ASBA Speed Networking

REGISTER

Date: Every 2nd Tuesday of the Month
Time: 3:30 PM - 5:00 PM
Location: Phoenix or Tucson

You're important to us and we want to help protect you

Mutual of Omaha

and your family through the use of insurance products. As a valued association member, you have the opportunity to purchase an insurance policy with lower premiums and/or enhanced benefits not available to the general public. Click here to learn more.

LEARN MORE

Have questions on small business and health insurance?

Health Insurance

Get the latest on individual, sole proprietor, or group plans related to small business. We can help you find the right plan for you, and your employees. Click to learn more!

LEARN MORE

CopperPoint Insurance Companies

CopperPoint Mutual

CopperPoint Insurance is Arizona's premiere provider of workers compensation insurance. We've been providing coverage and advocating for Arizona businesses, small and large, throughout the state since 1925.

LEARN MORE

Association Management Software Powered by YourMembership.com®  ::  Legal