The Trouble-Free Way to Offer Government Guaranteed Loans
IFS’ streamlined government-guaranteed lending platform can increase profitability and reduce regulatory risk; so there’s no need to dither in the details of on-boarding and implementation. Let our team of expert banking consultants guide you through the process.
Streamlined Government Guaranteed Lending Process
Our platform is designed to minimize time from loan origination through closing; while at the same time ensuring full compliance with all regulations. Lenders can enjoy our full suite of services or customize a program to meet the needs of your lending institution.
- Preliminary Eligibility Assessment
The SBA & USDA loan process requires significant time investment; therefore, it’s important to qualify a proposed credit quickly. Our assessment process facilitates rapid evaluation of prospective SBA or USDA loan applications; while our experts work closely with your lending team to develop a compliant structure that aligns with your institution’s credit criteria. Key loan conditions are agreed upon and understood up front with the borrower to avoid costly surprises later in the process.
- Credit Analysis & Underwriting
It’s a challenging taks to follow your internal credit policy, while incorporating specific SBA or USDA underwriting criteria. IFS offers a robust electronic underwriting system, compliant financing memorandum and streamlined underwriting process to overcome this challenge. Our experienced underwriting team completes a thorough analysis of each credit request to support your internal approval and incorporate key eligibility criteria not customarily evaluated within conventional credit analysis. Rest assured your underwriting will be well received by the SBA and USDA.
- Loan Processing
Processing an SBA or USDA loan application requires specialized expertise to ensure compliance with regulatory requirements while avoiding loan processing delays. Our experts can handle all facets of the loan application process including documentation, collection and review, SBA One system inputs, form preparation, ordering and reviewing searches, and preparation and submission of the electronic loan application. IFS manages the application process through final agency approval, resulting in quick turnaround of the SBA or USDA Loan Authorization.
- Closing
IFS coordinates with the lender and lender’s legal counsel to satisfy all conditions of the SBA or USDA Loan Authorization, lender approval, and agency standard operating procedures, to avoid costly missteps throughout the closing process. IFS reviews all due diligence and loan documentation prior to closing with focus given to key items that notoriously create guaranty repairs, denials, or audit exceptions.
- Secondary Market Sale
The SBA 7(a) & USDA loan programs include an active and liquid secondary market comprised of investors ready to purchase the guaranteed portion of the loan. If you choose to sell within the secondary market, IFS will structure the deal to maximize premium income. We coordinate the bidding process and aggregate sale documentation, then expedite delivery of the required forms to the investor. We also assist with coordinating resources to properly account for the sale.
If your lending institution needs additional liquidity even after selling the guaranteed portion, IFS can assist with identifying participants to purchase up to 15% of the retained unguaranteed portion.
- Compliance
After closing, IFS completes a compliance review using the SBA “10 tab” guaranty purchase package and SBA Office of Credit Risk Management audit guidelines as a checklist to ensure accuracy and nothing is omitted. We also use the loan authorization, lender approval, and standard operating procedures to ensure all required conditions have been met.
If exceptions are noted, they are programmed within our tickler system and tracked through resolution.
- Loan Servicing & Administration Services
It is difficult to catch up after falling behind with ongoing SBA 7(a) loan conditions. Our experienced team has an automated servicing platform at their disposal to manage the process. We program all ongoing reporting requirements within our tickler system and proactively follow up on your behalf to ensure timely action.
Our servicing department completes monthly 1502 servicing reports, which are subsequently submitted to the SBA’s Fiscal Transfer Agent (FTA). While payment collection is the responsibility of the lender, we reconcile all remittances to ensure accrued interest, guaranty fee and participation allocations are calculated both timely and accurately to avoid costly late penalties or remittance errors.
We also work with your team to properly document all post-closing modifications such as collateral releases, guarantor releases, and subordinations.
We can also help with annual credit reviews for our partners that need it.
- Workout & Liquidation
In the unfortunate case of a loan liquidation, our experts help ensure the proper steps are taken to facilitate a smooth guaranty purchase process. We work with you and experienced counsel to develop a viable workout strategy or liquidation plan. We also assist with demanding the guaranty and assembling the “10 tab” guaranty purchase request package.
Let’s Get Started
Find out how to outsource your government lending department to highly qualified banking consultants.
(610) 228-4654