Consider Outsourcing your 7(a) Loan Needs to GLCF!
In addition to assisting lenders all over the state with the 504 loan program, GLCF is also an authorized 7(a) Loan Service Provider (LSP). Under an approved LSP agreement between GLCF and the bank or credit union, GLCF can assist the lender with their loan structuring, underwriting, and loan documentation needs pertaining to the 7(a) loan program. Many lending institutions do not have in-house SBA specialists, so they find outsourcing this service very beneficial.
The 7(a) Loan Program is a very popular SBA loan program that can help assist borrowers with eligible project costs as high as $5 million and can include project costs such as:
- Purchase real estate including construction/improvements.
- Purchase Equipment
- Purchase furniture, fixtures, and supplies
- Short and long-term working capital
- Refinance current business debt
The benefit for the bank is a 75%-85% guaranty for the life of the loan, and the benefits to the borrower are a low down payment requirement and financing for projects with a collateral shortfall. As an added benefit, through 9/30/2022, the SBA has waived the borrower guaranty fee and lender on-going annual fee for loans $350,000 and less.
To find out more about the 7(a) loan program and how to partner with GLCF on future projects, please call our 7(a) Loan Specialist, Nik Hoezee.