Rural Lenders
The Small/Rural Lender Advantage (S/RLA) initiative is designed to accommodate the unique loan processing needs of small community/rural-based lenders, many of which make very few SBA loans. It is part of a broader SBA initiative to promote the economic development of local communities, particularly those facing the challenges of population loss, economic dislocation, and high unemployment. S/RLA encourages small community/rural lenders to partner with SBA by simplifying and streamlining loan application process and procedures, particularly for smaller SBA loans.
Key Features:
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Streamlined loan application and process for SBA loans of $150,000 or less; with limited additional information and analysis required for loans above $150,000.
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A simplified SBA loan eligibility questionnaire to help small or occasional lenders meet SBA’s eligibility requirements.
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Loans centrally processed through SBA’s Standard 7(a) Loan Processing Center.
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Lenders can transmit applications via fax and eventually online.
| Maximum Loan Amount: | $350,000 |
| Maximum SBA Guaranty %: | Standard SBA 7(a) guaranty percentages apply. |
| Interest Rate: | Interest rate can be fixed or variable, and is negotiated between borrower and lender, but must adhere to SBA standard 7(a) interest rate caps. |
| Eligibility Decision: | By SBA. |
| Revolving Lines of Credit: | Not available under this program |
| SBA Turnaround Time: | Routine loans within 3-5 days. |
| Forms: | One-page application for very small loans, with limited additional information required for loans above $50,000. |
| Collateral: | All available collateral (liquidation value) up to loan amount. |
| Credit Decision: | SBA reviews the loan for both credit and eligibility determination. |
Eligibility
A lender must be in good standing with SBA and must have processed an average of 20 or fewer SBA loans annually over the last three fiscal years.
Lender Training
Training on SBA program requirements for S/RLA lenders is available from the local SBA District Office.
For More Information
For more information, go to Rural Lender Advantage.
