Understanding and Simplifying the SBA Process: Unraveling the Mysteries

In 2022, the Small Business Administration (SBA) injected nearly $43 billion into small business capital programs, supporting over 62,000 traditional loans via the 7(a), 504, and Microloan programs. Despite this substantial financial boost, a prevalent sentiment lingers—the SBA process is needlessly complex. With 33 million active small businesses in the US, the SBA assisted only 1 in 600 with capital backing. The perceived complexity often depends on how a business owner engages with the application process. Now, thanks to Fintech Online Advisory Firms like FastWay SBA, small business borrowers are experiencing a faster and more streamlined SBA loan process.

A Renaissance in SBA Loan Origination: Shaping a New Narrative

The SBA's financial support for America's small businesses continues to expand, with banks taking cues from Alternative Lending platforms to enhance speed and efficiency. The longstanding belief that the SBA funding process is convoluted stems from complex forms, unclear next steps, and the enigmatic E-tran scoring method. Online Brokerages for SBA loans, such as FastWay SBA, simplify this process by conducting pre-underwriting qualifications, guiding applicants to the most suitable lenders. This efficient procedure, coupled with quick application processes, results in faster approvals and funding.


Understanding the Complexity: The Role of Lenders

The perception of a protracted process is not solely the fault of the SBA; rather, it lies with the lenders issuing the funds. Funds do not directly flow from the SBA to small businesses; instead, the bank disburses the funds while the SBA guarantees the note in case of default. This practice incentivizes banks to lend to small businesses, but not all banks have the same underwriting criteria. Some may require profitability, while others may not, even when the SBA has issued an acceptable E-tran score.

Navigating the SBA Loan Process: FastWay SBA's Approach

FastWay SBA addresses these challenges with a streamlined process for approving, submitting, and closing working capital SBA programs. Partnered with numerous SBA-accredited banks, FastWay SBA identifies the right bank for each applicant, emphasizing speed and ease for a higher approval-to-funding ratio.

Empowering Small Business Owners: A Strategic Approach

For small business owners seeking working capital, especially through an SBA guaranteed note, caution is advised. Many businesses unknowingly approach banks with the wrong loan program or amount, leading to declined applications based on the bank's parameters, even if the SBA approved the business.

To navigate the diverse underwriting criteria of different banks, collaborate with an SBA brokerage like FastWay SBA. Such brokerages possess the experience needed to guide businesses through the intricacies of each bank's unique requirements, ensuring a smoother and more successful application process. For instance, some SBA lenders mandate the payment of all current business debts before funding, requiring a UCC1—a first-position lien on business assets—while others do not have this requirement.