The Certified Lenders Program (CLP)
is designed to provide expeditious service on loan applications
received from lenders who have a successful SBA lending track record
and a thorough understanding of SBA policies and procedures. CLP
lenders are expected to perform a complete analysis of the application
and, in return, SBA promises a fast loan decision. SBA reviews the
lender's credit analysis rather than conducts a second analysis.
SBA still makes the final credit and eligibility decision but, by
completing a credit review instead of an independently conducting
analysis, SBA strives for 3-day (working days) turn around in arriving
at its decision.
The key aspect of CLP is the greater utilization of the credit
knowledge of the lender's loan officers to shorten SBA's loan processing
time. SBA still makes an independent determination as to whether
the applicant can repay the loan from the profits of the business,
but under CLP, the lenders work is reviewed rather than completely
double checked.
How to become a CLP Lender
To become a Certified Lender, an SBA field office may nominate
a Lender. A Lender may also request a field office to consider it
for CLP status. SBA district directors may approve and renew a Lender's
CLP status. The district director will consider whether the Lender:
(1) Has the ability to process, close, service and liquidate loans;
(2) Has a satisfactory performance history with SBA, including the
submission of complete and accurate loan guarantee application packages;
(3) Has an acceptable SBA purchase rate; and
(4) Has shown the ability to work well with the local SBA office.
If the district director does not approve a request for CLP status,
the Lender may appeal to the Associate Administrator of Financial
Assistance, whose decision will be final. If SBA grants CLP status,
it applies only in the field office that processed the CLP designation.
A CLP Lender must execute a Supplemental Guarantee Agreement that
will specify a term not to exceed two years.
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