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SBA Welcomes Newest Lenders to Massachusetts Network

Stoneham Bank and Taunton Federal Credit Union Gain New Status as Approved SBA 7(a) Lenders
Release Date: 
Friday, January 26, 2018
Release Number: 
18-8
Contact: 
Norman Eng 617-565-8510

BOSTON – The SBA Massachusetts District Office announced the newest approved 7(a) lenders to join the SBA lender network:

“We are excited to welcome the newest approved 7(a) lenders to the SBA Massachusetts network and always looking to work with more partners,” said District Director Robert H. Nelson. “The SBA has three lending programs: 7(a), CDC/504, and Microloan; each program has its own lending practices and eligibility requirements for lenders to decide which program to participate in.”

 

About 7(a) Loan Program

Banks, savings and loans, credit unions, and other specialized lenders participate with the SBA on a deferred basis to provide small business loans that are structured under 7(a) guidelines. If a borrower defaults on an SBA-guaranteed loan, the lender may ask the SBA to purchase the guaranteed portion.

Most 7(a) loans have a maximum loan amount of $5 million. However, SBA Express loans have a maximum loan amount of $350,000. SBA Export Express loans have a maximum loan amount of $500,000.  SBA's maximum exposure is $3.75 million ($4.5 million under the International Trade loan). If a business receives an SBA-guaranteed loan for $5 million, the maximum guaranty to the lender will be $3.75 million, or 75 percent. The guaranty percentage varies depending on the loan amount and program type.

To participate in the 7(a) loan program, a lender must meet the following requirements:

  • Have a continuing ability to evaluate, process, close, disburse, service, and liquidate small business loans.
  • Be open to the public to issue loans (and not be a financing subsidiary, engaged primarily in financing the operations of an affiliate).
  • Have continuing good character and reputation, and otherwise meet and maintain the ethical requirements as identified in 13 CFR Part 120.140.
  • Be supervised and examined by a state or federal regulatory authority, satisfactory to the SBA.

 

About the U.S. Small Business Administration:

The U.S. Small Business Administration (SBA) was created in 1953 and since January 13, 2012, has served as a Cabinet-level agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.  The SBA helps Americans start, build and grow businesses.  Through an extensive network of field offices and partnerships with public and private organizations, the SBA delivers its services to people throughout the United States, Puerto Rico, the U.S. Virgin Islands and Guam.  To learn more, visit www.sba.gov

 

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