A record number of small-business loans were made through the Small Business Administration (SBA) during fiscal year 1995. One key reason, believes Mike Stamler of the SBA, was the nationwide rollout of the LowDoc loan program.
According to Stamler, 56 percent of the 55,600 loans made in 1995 were through the LowDoc program. In fact, more of these loans for under $100,000 were given in one year than the total number of SBA loans made since 1993.
LowDoc's one-page application has cut down on the amount of paperwork required, making the loans more profitable for lenders and inspiring them to increase loan volume.