Community Banks and the SBA 7(a): Three Questions to Ask Third-Party Servicers

The flagship lending program of the US Small Business Administration the SBA 7(a) program, has advantages for both lenders and small-business owners. Due to the lack of SBA experts on staff, many community banks turn to third-party packaging agents who work directly with the borrower to manage loan-related paperwork and streamline the application and approval process. Before engaging with any third-party servicer, be sure to ask about: 1. fee structure, 2. experience prior to becoming a third-party processor, and 3. references of other community banks that have worked with the servicer.