In an effort to increase the use of it’s government guaranteed loan programs, the S.B.A. has proposed new regulations to streamline their loan process. This is great news to the lenders and borrowers nationwide that rely on the S.B.A. to help provide them the access to capital for small businesses.
“Streamlining and simplifying has been a key focus of our agency over the last few years. The changes are the latest steps to reduce paperwork burden, with our eye on the larger goal of expanding access to capital and giving entrepreneurs and small business owners the financial resources to grow and create jobs,” said SBA Administrator Karen Mills. “Specifically, these proposed regulations will provide greater access to capital through our two largest loan programs, while also reducing risk to taxpayer dollars.” [source]
Working in parallel to these proposed changes, CDC Small Business Finance works with the lender to mitigate the duplication process on the borrower of submitting important loan documents to two sources. It is very important for us to work closely with our lending partners so that the borrower experiences the least amount work in obtaining a loan. We will share the documents we’ve already collected from the borrower with the bank and visa versa. This allows the movement of the loan from approval to funding to be that much quicker.
We will update you as these SBA streamlining regulations move forward. In the meantime, for a list of the proposed changes and their benefits, click here.