The Prequalification Loan program uses intermediary
organizations to assist prospective borrowers in developing viable
loan application packages and securing loans. This program targets
low income borrowers, disabled business owners, new and emerging
businesses, veterans, exporters, rural and specialized industries.
The job of the intermediary 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, it 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. Note: Small Business Development
Centers serving as intermediaries do not charge a fee for loan
packaging. For-profit organizations will charge a fee.
Once the loan package is assembled, it is submitted to the SBA
for expedited consideration. 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. The commitment letter or pre-qualification
letter, indicates SBA's willingness to guaranty a loan made by
a lender under certain terms and conditions. The intermediary
then helps the borrower locate a lender offering the most competitive
rates. The applicant then takes the letter and its application
documents to a lender for a decision.
Policies Specific to the Prequalification Program
The maximum loan amount for this pilot program is $250,000. Interest
Rates, Maturities, Collateral policy, and Guaranty percentages
all follow the standard 7(a)
loan program.