By ALAN J. ORTBALS
The Small Business Administration hit record lending levels in the state of Illinois in recently completed FY2005. Loans were
up a whopping 74.5 percent over FY2004, according to figures supplied by Robert Esquivel, finance division chief for the
Illinois District Office of the SBA. Total loan volume was up from 2,066 loans in FY2004 to 3,605 loans for fiscal year 2005.
Esquivel attributes much of the increase to a combination of making the programs easier for lenders to use and an education
campaign to change the image that some bankers have of the SBA loan programs.
"We're always fighting the misconceptions of SBA financing," said Esquivel. "One, that there's a lot of
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paperwork. Two, that it takes forever. And the third, that it's too expensive to deal with."
Because of these negative misconceptions, some bankers have shied away from using SBA programs. To try to dispel these
myths, the SBA began holding bimonthly seminars and lenders forums to educate bankers on the programs and convince them of
their ease of use.
Esquivel says that the turn-around time to get approval from the SBA through the Express Loan Program is around 36 hours.
However, bankers unfamiliar with the program frequently think it takes up to six months, according to Esquivel. Under the
Express Loan Program, banks can lend up to $350,000.
"Even under the regular 7a loan program, our PLP (Preferred Lenders Program) lenders get turn-around times that are equal
to the Express Loan Program if not better," he said.
Loans guaranteed under the 7a program can range up to $2 million. The preferred
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