Electronic SBA Loan Processing
SBA utilizes an electronic loan processing system for 7(a) lending, also known as E-Tran. Stephen Kucharski – Director, SBA Office of Performance and Systems Management reported that “E-Tran allows lenders to communicate and perform most relevant transactions with SBA electronically, thus cutting down substantially on both paperwork and processing time. In fiscal year 2013, SBA had a priority goal to reach 90% electronic processing for 7(a). That goal was not only reached but surpassed, as the agency ended the year with 92% of 7(a) loan transactions conducted electronically. In 2014, SBA is moving toward 100% electronic loan processing for 7(a).”
“Until the advent of E-Tran, one of the most common issues raised by non-SBA lenders as an obstacle to becoming one was a perception that transactions with SBA tended to be cumbersome and time-consuming. Today, by contrast, E-Tran is one of the features the agency can and does use as a tool to encourage more lenders to join the SBA ranks."
Further enhancements are on the horizon as SBA’s new Administrator, Maria Contreras-Sweet, recently stated, “Early next year we will roll out SBA One. I describe it as a lot like Turbo Tax for business lending. It will enable the agency to provide one set of forms, services, and data management to thousands of SBA lending partners. We will use industry-leading electronic signature software to help facilitate loan closings. If you’ve filed your taxes electronically, you’ve used this software. We are preparing to bring this advance to commercial small business lending.”
“We’ll create a single portal that’s a one-stop shop for eligibility, underwriting, closing, loan modification, servicing, and purchase. It will automate the upload of documents. It will automate the generation of forms. It will automate credit scoring. And it will automate electronic signatures. SBA One will streamline and simplify our lending process. It will save you hours of processing time and thousands of dollars in processing costs on every 7(a) loan. Needless to say, we’re excited about SBA One, and we hope you are, too.”