My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Finance

Fast Cash

Catch a major-league SBA loan in just hours with a "preferred" lender.
- Magazine Contributor
2 min read

This story appears in the January 2001 issue of Entrepreneur. Subscribe »

Q: I am seeking an SBA loan and have been told by business associates to approach "preferred" SBA lenders only. I thought all SBA lenders were the same. What's the difference?

A: The biggest difference is speed. Preferred SBA lenders have garnered this designation from the SBA by proving they can originate, underwrite, approve and close a consistent amount of quality SBA loans. Because of their excellent track record, they're given full authority by the SBA to approve loans, which allows them to make decisions usually within a 24-hour period.

Preferred status comes only after the lender proves itself as a certified SBA lender. Certified lenders have only partial loan authority and must submit their loans to the SBA for final approval. With a three-day turnaround for the certified process, you can see why lenders work so hard to attain preferred status. That said, a certified lender can still outperform a preferred lender if it works with an experienced SBA staff.

The bottom line is to make sure the SBA loan officers at the lending institution know what they're doing. Ask friends, business associates and lenders for SBA officers' names and the dollar amount of loan volume they've generated. And call your local SBA office for referrals; they know who the real players are.

SBA loans take many people down the road to business success; just do your homework to make sure you have an enjoyable trip. To find your local SBA office, as well as certified and preferred lenders in your area, visit the SBA Web site at www.sba.gov/financing.


Doug Hood is a co-founder of Rainmaker Capital Corp., a capital acquisition consulting company in Cartersville, Georgia. Co-founder Marilea S. Hood contributed to this article. Send questions or anecdotes via e-mail to doughood@rainmakercapital.com.

Future Financial Challenges and Opportunities for Small Businesses