FINANCING OPTIONS: Pre-Qualification

PRE-QUALIFICATION

     SBA is presently experimenting with alternative methods of
     providing its guaranty on loans made by lenders for 
     applicants who are part of an under served market.  Under
     served clients currently include minority owned and women-
     owned businesses. The pre-qualification process allows the
     application documents to be evaluated by SBA before they are
     submitted to a lender.

     Under pre-qualification procedures, the under served 
     applicant takes their application documents to a pre-
     qualification intermediary.  Their job is to work with the
     applicant to make sure the business plan is complete and 
     that the application is both eligible and has credit merit. 
     If the intermediary is satisfied that the application has a
     chance for approval, they will send it to the SBA for
     processing. To find out whether there is a pre-qualification
     intermediary operating in your area, contact your local SBA
     office.

     SBA conducts a thorough analysis of the case, using the same
     time frame and degree of analysis that it uses when 
     processing requests under the regular method of delivery
     process. If SBA decides the application is eligible and has
     sufficient credit merit to warrant approval, it will issue a
     commitment letter on behalf of the applicant, that informs 
     the reader of SBA's willingness to guaranty a loan made by a
     lender under certain terms and conditions.  The applicant 
     then takes the letter and their application documents to a
     lender for their decision.