When it comes to small business lending the most common route is the Government backed loan known as Small Business Administration (SBA) loan.
It is important to know that the SBA does not actually lend money instead it provides a guarantee which allows Banks to make loans for small business owners and business buyers that they might not otherwise make. Still the documentation requirements are exhaustive and the process can be time consuming.
While there are, many SBA approved lenders, you can help expedite the process by selecting a PLP (Preferred Lending Program) lender. Under this streamlined program, the SBA gives certain lenders the green light to make the final credit decision.
Non PLP Lenders must first process their own approval and then send the loan to the SBA for its final stamp of approval. A PLP designated lender, on the other hand, is able to underwrite and approve SBA loans, making the process much quicker.
Only the very best Lenders receive the PLP designation. It is only open to those with a proven track record of successfully processing and servicing SBA-guaranteed loans. Other factors considered include performance, loan volume, and a clear knowledge of SBA policies and procedures. By choosing a PLP Lender you can not only reduce the processing time for your loan but also greatly improve your chances of being approved.
The PLP designation lasts for a maximum of two years. Prior to recertification the SBA reviews a lender’s loans, policies, and procedures.
As a business broker, I strongly recommend that my buyers work only with PLP lenders. I have close relationships with some of the Country’s top Lenders and I am always happy to make an introduction.
To learn more about the SBA and PLP Lenders, visit the SBA website
Anthony John Rigney is a Florida based Business Broker, Board Certified Intermediary and member of the Business Brokers of Florida (BBF) as well as the International Business Broker Association (IBBA).
You can reach Anthony at 904-725-7677