The recently announced Lender Match online referral tool from the Small Business Administration (SBA) was created to simplify the process of matching lenders and borrowers.
An Overview of the SBA Lender Matching Tool
Lender Match was formerly called LINC (Leaving Information and Networks to access Capital), which launched in 2015. However, the SBA updated and renamed the program to make it more relevant to small businesses by gathering information during the application process more relevant to their needs.
This means for small businesses that they can fill out a form quickly and expect to be connected with a lender within 48 hours. For lenders, the new format allows them to filter the referrals they receive from Lender Match to find the companies best suited to the type of loans they offer. In addition, the search algorithm allows them to optimize specific criteria such as type of business and specialized financing.
The goal is to get more capital for small businesses, and SBA Administrator Linda McMahon said so in the press release. “I want to help get more capital into the hands of small business owners and entrepreneurs, and encourage them to tap into SBA resources for start-up and growth solutions. This [Lender Match] essentially serves as a matchmaker, making it easier for small businesses to find lenders. »
How does the SBA Lender Matching Tool work?
Lender Match is a free online tool. To begin, you describe your needs by answering a series of questions. The site says it should only take five minutes. Within 48 hours you will receive emails with contact details of interested lenders. If you agree with the rates, conditions, fees and other points, you can apply for the loan of your choice.
However, the SBA recommends that you prepare before finding a lender. Have a business plan, amount and use of funds you are requesting, credit history, financial projections, collateral, and lending industry experience before applying.
Lenders must be SBA approved and in good standing to receive referrals from borrowers. Currently, the SBA has over 800 lenders in its program and has made over two million lender referrals.
Using SBA Resources for Your Small Business
The SBA is a very important source of information for small businesses. Whether it’s using Lender Match to get in touch with a lender or finding out about the latest computer viruses, it’s one of the best free and reliable sources you can use to get answers about your business.
Image: Small Business Administration