Best SBA 7a Lender
On September the 25th 2009 CNNMoney.com reported a new leader in the SBA 7a Lender Loan program. Many lenders have be hit hard this past year and are not funding as many Small Business Administration loans as years past. This one increased it lending.
That’s right Wells Fargo (for complete discloser the author of this website also banks at Wells Fargo) the new leader in the larger loan amount SBA 7a lender loan program. As many know Wells purchased Wachovia soon after the start of the account year and has helped put the bank in the number one spot.
2 reasons why Wells Fargo is top dog:
- They do not sell the loans on the secondary market. This was standard practice before Lehman Brothers went belly up. This forced banks to hold on to the loans and they could not free up the capital to make new money available for the SBA 7a Loan program.
- The 7a loan is the flag ship of the SBA lender program. This type of loan can be as much a 2 million dollars and is insured the U.S. government will pay the SBA 7a lender for the amount that is guaranteed.
A typical SBA 7a lender has a stronger underwriting examination of the loan. Because the 7a loan is guaranteed and the lender is loaning larger amounts the funds, The loans are usually asset backed and therefore less of a risk to the Bank.
The future of SBA 7a lender:
The SBA 7a lender said that it is willing and able to make the SBA 7a lending work because of the increase to 90% loan guarantee to the bank. Wells Fargo said that it is a good time to be a SBA 7a lender and they will continue with the program to fill in the gaps the out of business banks left in the market.
Wells Fargo is also adding new job for the plan to increase lending to small business through the SBA 7a loan program. This is a win win for creating jobs both for the bank and the small businesses.
What to do next to get started:
- This is easy, review the material on this website about the SBA loans and the different programs. Make sure that you would reasonably qualify for the SBA 7a loan.
- Next, just because Wells is number 1 is not a great reason not to shop around. Do your best to talk to at least 3 or 4 loan officers and pick the one who is not just telling you what you want to hear.
- Find a Wells Fargo office that do the SBA 7a Lender loan program and make an appointment.
- If you do not have a branch closes to you visit the website and do everything over the phone and the internet.
You can learn more about the SBA 7a Loans by going to the SBA 7a loans center