Welcome to SBA Works for Lenders. Here you will find what services SBA Works can offer your bank. We take pride in being one of the only true turn key government guaranteed lending services. We will help guide you through the government guaranteed lending process from start to finish, and beyond. Not only do we assist through origination and closing, but we will be here for you with servicing help and even liquidation. Give us a call today and let us show you why our banking partners have used us for over seven years.
- SBA Works provides the following services:
- Initial consultation with customers
- Processing of origination forms
- Submission of application for approval
- Direct contact with agency when working through approval
- Once approved assists in compliance with approval documents
- Set up closing
- Recommendations on agency approved attorneys, appraisers, and environmental consultants
- Final closing package with post-closing audit
- Attaining secondary market bids for selling the guaranteed portion to generate non-interest income
- Servicing of existing portfolio
- Liquating and collection of the guaranty from the agency.
“How can SBA Works help my bank generate non-interest income?”How can government guaranteed loans generate non-interest income for my bank?
In the increasingly competitive banking industry banks are looking for new ways to generate non-interest income. Here is how SBA Works can assist you in achieving your goal. Let’s take a $1,000,000 SBA guaranteed loan for a convenience store on a 25 year amortization at prime + 2.00%.
Loan Amount: $1,000,000
Amount Guaranteed: $750,000 (75% guarantee)
A 75% guaranteed loan should bring at least a 12% premium.
12% of $750,000 is $90,000. The bank would book a premium of $90,000 in non-interest income. This process is completely transparent to the customer. The customer will continue to make their payments at the bank and you will remain their loan officer. Also, the bank will charge a 1.00% servicing fee to the purchaser.
Let’s go a step further and assume the loans defaults. You liquidate the collateral at a 75% margin. Here is the maximum amount the bank will have at risk.
Loan amount: $1,000,000
Less collateral value: $750,000
Amount remaining: $250,000
SBA portion: $187,500
Bank portion: $62,500
With the bank portion of $62,500 if we take into account the premium of $90,000 the bank actually netted $27,500 on a $1,000,000 defaulted loan!