Lender's Corner

NYBDC, SBA AND (insert your bank name):
Great Small Business Lending Partners
 by Dave Terrenzio, Executive Vice President, NYBDC
dterrenzio@nybdc.com


Many of our member banks appreciate that the SBA 7(a) loan program is a terrific way to mitigate risk on the difficult credits but are reluctant to utilize the program for a variety of reasons.  Some feel that the SBA 7(a) program is time consuming and difficult; some are unwilling to invest in the training and personnel necessary to maintain a credible SBA Department, and some think it’s just too darn hard to get the SBA to pay the guaranty in the event of borrower default.

Our mission is to supplement and support the efforts of our lending partners to facilitate access to capital to New York’s small businesses.  Time and time again loans supported by SBA 7(a) guarantees have made a difference in a very positive way, supporting dreams and creating opportunity in communities across New York State.  NYBDC takes great pride in its expertise in SBA lending programs and its work with lending partners on SBA 7(a) loans. 

Your bank can take advantage of this expertise by participating with NYBDC.  We can handle the processing, closing and servicing of SBA loans originated by your bank.  In furtherance of our goal to become your partner in SBA lending, NYBDC will: 

  • Provide lender training and support on SBA loan products;
     

  • Make joint calls with the loan officer to prospective SBA applicants;
     

  • Receive and process applications for SBA loan referrals;
     

  • Prepare a loan report and all supporting documents for submission to the SBA;
     

  • Follow-up with the SBA to obtain the authorization for loan guaranty;
     

  • Prepare loan documents acceptable to your bank and the SBA;
     

  • Close the loan in accordance with all SBA requirements and the bank approval;
     

  • Collect the required guaranty and monthly servicing fee and remit to the SBA;
     

  • Bill and collect the loan payments by automatic debit for distribution to your bank;
     

  • Service the loan in accordance with all SBA requirements (e.g. payment reporting, site visits, loan review, insurance and real estate tax verification, etc.);
     

  • As necessary, provide intensive servicing and collection of the loans; and
     

  • In the event of default, exhaust legal remedies to liquidate collateral and, in the event of deficiency, call on SBA to pay the guaranty.   

NYBDC never charges a servicing fee but, ideally, retains 50% of the loan with your bank participating for the balance.  We will also consider participation at a higher or lower percentage depending on your needs.

NYBDC’s objective is to share expertise with your bank in SBA lending, stimulate small business loan activity, and build a joint portfolio between NYBDC and your bank.  We work  to maintain our expertise in all facets of SBA lending.  Our partnership will allow your bank to take advantage of the SBA programs without the substantial investment necessary to create and maintain an SBA loan department.

As our New York State SBA District Offices move to Centralized Processing over the next few weeks, the value of experience and knowledge could make a difference.

Give us a call!

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