Tweet

Prequalification Program

Written by: Manage Your Business

Article Overview: The Prequalification Loan program uses intermediary organizations to assist prospective borrowers in developing viable loan application packages and securing loans. This program targets low income borrowers, disabled business owners, new and emerging businesses, veterans, exporters, rural and specialized industries.

Prequalification Program

The Prequalification Loan program uses intermediary organizations to assist prospective borrowers in developing viable loan application packages and securing loans. This program targets low income borrowers, disabled business owners, new and emerging businesses, veterans, exporters, rural and specialized industries.

The job of the intermediary is to work with the applicant to make sure the business plan is complete and that the application is both eligible and has credit merit. If the intermediary is satisfied that the application has a chance for approval, it will send it to the SBA for processing. To find out whether there is a pre-qualification intermediary operating in your area, contact your local SBA office. Note: Small Business Development Centers serving as intermediaries do not charge a fee for loan packaging. For-profit organizations will charge a fee.

Once the loan package is assembled, it is submitted to the SBA for expedited consideration. SBA conducts a thorough analysis of the case, using the same time frame and degree of analysis that it uses when processing requests under the regular method of delivery process.

If SBA decides the application is eligible and has sufficient credit merit to warrant approval, it will issue a commitment letter on behalf of the applicant. The commitment letter or pre-qualification letter, indicates SBA's willingness to guaranty a loan made by a lender under certain terms and conditions. The intermediary then helps the borrower locate a lender offering the most competitive rates. The applicant then takes the letter and its application documents to a lender for a decision.

Policies Specific to the Prequalification Program

The maximum loan amount for this pilot program is $250,000. Interest Rates, Maturities, Collateral policy, and Guaranty percentages all follow the standard 7(a) loan program.

Related Articles
  Prequalification Programs
  SBA Loans
  Export Working Capital
  How to Choose an Accounting Program
  Frequent Referral Programs

Article Tags:



Related Forum Posts
Re: How to develop sales contacts? - Everyone has the right idea here. Depending on your business, there are different techniques that you could use. For consultants and sales heavy businesses, there are three tactics that I have found especially useful in my business: 1. Attend Networking Events 2. Cold Calling 3. Referral Program 4. Affiliate Program (most successful) The affiliate program was successful for me, as I hooked up with a franchise consultant, and he gave multiple unit businesses that needed my credit card processing services. I highly suggest you hook up with a sales partner, and give him a cut of the monthly revenue.
Think like an Association - Hey Sebastian, Maybe you could try thinking like an Association... I would study the structure or formats used by other Associations. What are they doing to add value for their members? The BBB plays a monitoring role for consumers by gathering data about business' that are behaving badly. And they're pretty successful at it too. Maybe you can offer a 'Platinum Program' that franchisors buy into. Accredited members only. Criteria could be strict: 1. Age (stability): 10+ years 2. Satisfied franchisees: 85% + satisfaction 3. Size (stability again): 250 units 4. Strong profits 5. Great management -Maybe a 'Gold Program' for those Franchisors that aren't quite at that level, but can strive to reach it... -Top 100, 500, 1000 Listing for qualified members... maybe a slap at Entrepreneur.com and their biased top 10 lists... -Maybe act as a monitor like BBB? -Maybe team up with FranSurvey OR do something similar for each member (not sure about Fransurvey's rep, but I like the concept) There's so much discontent within the franchising arena that I think if you were part of the solution, then you could create a win/win with your Association. The only downside is that this power can get abused if there aren't good checks and balances within the association.
Setting up Revenue Sharing Program - Hi Martin I know it must be confusing going through the process of setting up an advertisement when you're not actually going to use it, but it's how it seems to work. For anyone else who has problems with this process, simply follow these instructions courtesy of magnify.net and make sure you have created your Adsense Account and it has been approved. To create a [i:1b5dm29n]new channel[/i:1b5dm29n], go the main AdSense web site, login and click "AdSense Setup", then "Channels", then "Add new custom channels". You can call your channel anything e.g. evancarmichael.com To discover the [i:1b5dm29n]channel number[/i:1b5dm29n] (so you can paste it into the Evan Carmichael Revenue Sharing Program) that has been assigned to your new channel, click "Products" and "AdSense for content", then create an ad (Just hit next, next, next until you reach Get Ad Codes) using your new channel and copy the number from the line that says "google_ad_channel = ". Now enter that number into Evan Carmichael Revenue Sharing Program and you'll be setup.
Re: Win Prizes - The Triple Crown Contest! - Hi GT - if you log into your author account you'll see Referral Program as one of the options on the left side. If you click on that you'll get the link that will tie people to your account.
Re: The Secret - [quote="Evan":wfjdovc7]Hi Binary Guy - The Secret certainly has been getting a lot of attention and promotion by the likes of Oprah. What have your experiences been with the program?[/quote:wfjdovc7] I am curious why you would call it a Program. It's based on an overriding 'law' like gravity and such. I have found that it really works. By seeking only what you want, you have a much better chance of getting it as opposed to 'just taking whatever comes'.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

10 Golden rules to survive the Global Crisis

Severance and Separation Agreements

African Technology Development

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.