News / Business
Craig G. Francis Blogs About “Due Diligence of the SBA”
SBA Loan Broker & Blogger @ CraigGFrancis.com
As Craig G. Francis points out, one of the elements that helps make these loans such a good option for both lender and borrower is the due diligence that is required by the SBA. In his latest post, Francis details some of the elements that go into verifying the viability of a borrower, including the most recent: SOP 50 10 5. This regulation requires that lenders check the Credit Alert Verification Reporting System (CAIVRS) to determine if individuals or businesses applying for SBA-backed loans have defaulted on previous federal loans.
Craig G. Francis explains how this requirement, rather than additional red tape, is actually a positive move which helps to weed out irresponsible borrowers. In this way the federal government avoids throwing good money after bad, which improves the lending situation for dependable and conscientious business owners.
SBA-guaranteed loans have consistently been among the most viable and cost-effective methods of funding a new or growing small business. With attractive terms, competitive rates and long-term amortization periods, SBA loans are a solid choice for budget-minded business owners. So much so, that nearly one-third of all business loans are backed by SBA guarantees. In addition, the guarantee makes banks more amenable to lending.
With over thirty years of experience in business lending, including placing over 2500 loans for over $1 billion in funding, Craig G. Francis has a wealth of knowledge about the industry. His insights into banks, lending and businesses make SBALoneStore.com and CraigGFrancis.com solid sources for small business owners.
For more information visit CraigGFrancis.com or contact him at 1-888-666-9722. For media inquiries, contact Kamatoy Media Group at 619-573-9456.
