# Presentation: 199290

## SBA Lender’s AdvantageLoan Guaranty Program

- Oklahoma District Office
- June 2008

## Topics to Be Covered

- Characteristics/Benefits of the Lender’s Advantage Loan Program
- Overview of Application Requirements and Associated Forms
- Other News
- Contact Information

## Lender’s Advantage

- 7a Loans up to $350,000
- Simplified Application
- 3-5 Day Loan Processing

## Lender’s Advantage

**Specifications:**
- Fillable PDF application can be transmitted by fax or email
- Simplified SBA loan eligibility checklist for lenders use
- Specialized eligibility assistance through SBA’s Standard 7a LGPC Help Desk
- Training from Oklahoma District Office on SBA loan requirements and processes

## Lender’s Advantage

- SBA’s 85/75 percent guaranty mitigates your risk, allowing you to offer credit to newer, less secure businesses
- The guaranteed portion of an SBA loan can be sold to an investor to maintain your liquidity and enhance your yield
- Guaranty fee can be taken as a direct tax credit by lender or borrower on Oklahoma state tax return

## Application Forms

- _REQUIRED_
- 2301A, Small Business Application for SBA Guaranteed Loan
- 2301B, Lender’s Application for Guaranty
- 2301C, Eligibility Questionnaire
- Lenders Credit Memorandum
- Supporting Documentation as indicated in Forms 2301 A, B, and C
- _REQUIRED IN CERTAIN CASES_
- 159, Fee Disclosure Form (for packaging by Agent)
- 912, Statement of Personal History (regarding past legal charges)
- 4506T, Request for Transcript of Tax Return (existing businesses corporate returns) to IRS
- G-845, Document Verification Request (for non-citizens) to CIS

## Tier 1 Loan

***Lender’s Credit Memo should address the following at a minimum:***
**History and nature of the business**
**Cash flow relative to debt service**
**Management experience of principal(s), particularly in the industry, financial condition of business, nature of competition**
**Balance sheet including requested loan funds and equity injection**
**Collateral adequacy (using SBA liquidation values)**
**Explanation/Justification for refinancing any debt as part of loan request**
**Discussion of credit analysis, including lenders rationale for recommending approval**
**Any other relevant information**

- Up to $150,000
- Existing Businesses only
- No Change of Ownership or Judgments/Bankruptcy filings

## Tier 2 Loan

***Lender’s Credit Memo should address the following at a minimum:***
- 8 items under Tier 1 plus:
- Analysis of working capital adequacy in next 12 months
- Analysis of cash flow to include historical/projected cash flow covering debt service after SBA loan
- Discussion of any that apply:  a) seller financing b) stand by agreements c) 90+ day delinquency d) trade disputes
- For change of ownership, include business valuation
- Discussion of bankruptcy filings and judgments

- Any loan amount up to $350,000 including:
- New Businesses (2 years or less)
- including Change of Ownership
- Businesses that have had judgments/bankruptcy filings

- $150,001 to $350,000
- Existing Businesses
- No Change of Ownership, Judgments/Bankruptcy filings

- OR

## Assistance with Eligibility 

- Loans with complicating eligibility factors such as affiliates, refinance, citizenship, excess personal resources should consult SBA at 916-735-1515 x4368 or _[7aquestions@sba.gov](mailto:7aquestions@sba.gov)__ _after completing Form 2301 Part 3.

## Other News

- The New Effective Date for SOP 5010(5) is June 15 (changed from May 1, 2008)
- Simplified Application Process for Credit Unions
- Local Training on Servicing and Purchase Processes Scheduled for July
- Mid America Lender’s Conference set for August 11-13 in San Antonio, Texas

## Contact Information

- Standard SBA Form Page: www.sba.gov/banking
- OKDO website:  http://www.sba.gov/localresources/district/ok/index.html
- SOP 50-10(5):  www.sba.gov/aboutsba/sbaprograms/elending
- Eligibility Assistance:  SBA Sacramento Loan Processing Center
- 	7aquestions@sba.gov or 916-735-1515 x4368
- Loan Requirements and Processes:  Oklahoma District Office
- 	cindi.anderson@sba.gov or 405-609-8018
- 	sandra.ransome@sba.gov or 405-609-8019
- Mid America Lenders Conference:  www.malc-conference.com