Is Outsourcing SBA Servicing A Better Solution?

February 21, 2016

Many community banks struggle with the management and maintenance required for SBA 7(a) loan portfolio servicing. Whether it’s the unfamiliar territory that surrounds the Small Business Administration’s processes and requirements or simply the time and staff it takes to manage SBA portfolios effectively, a profitable SBA lending program often gets defeated before its even fully realized.

 

Is Outsourcing SBA Servicing A Better Solution?

VITAL Financial Services provides community banks with a superior resource for accurate and detailed SBA 7(a) loan portfolio servicing. From evaluation and qualification of borrowers to processing, reporting, compliance, management, and ultimate sale and charge off of the loan, VITAL becomes an extended, profitable part of the bank’s lending department.

 

 

 

Do you currently have a small volume of SBA loans that doesn’t justify establishing or maintaining a full internal SBA department?

 

  • VITAL servicing team has extensive knowledge of available servicing options and provides guidance on complying with SBA’s Lender Matrix. We communicate with the SBA on behalf of the lender for all servicing requests and ensure the proper documentation of servicing actions is communicated to the lender.

  • Our team stays up to date on SBA rules and industry trends and will partner with lenders to share that information. This provides the most current servicing options and requirements without lenders having to pay for additional staff or costly training.

 

 

Do you have an existing SBA loan portfolio and a lengthy list of questions on how to appropriately service and report the loans to the Small Business Administration?

 

  • The Small Business Administration requires lenders to comply with certain disbursement, disclosure and reporting requirements. VITAL partners with lenders to ensure the SBA reporting is done to meet these detailed government standards.

  • Additionally, we offer 1502 Report preparation and submission, and have extensive experience resolving 1502 Reporting issues with SBA’s Fiscal Transfer Agent (FTA) Colson Services. VITAL will handle all Colson Services Lender Exception Reports and Transcript Reconciliations on behalf of the lender.

 

Are you working with SBA on the liquidation of a credit but are not sure how to proceed?

 

  • VITAL also provides guidance in effective SBA loan liquidation. We prepare the Purchase Packages, Care and Preservation of Collateral Tabs, and Charge Off Tabs as needed and submit to the SBA on behalf of our lenders.

 

Have you considered outsourcing the servicing of your bank’s existing SBA loans as an effective and cost-saving alternative?

 

  • We utilize a loan accounting system that compares both the bank’s internal records and SBA’s records which ensures the loan information is in balance.

 

 

Outsourcing the servicing of an existing SBA loan portfolio can save time as well as money for a community lender. If you are in need of a skillful team, do not hesitate to reach out to a VITAL Financial Services representative at 515-225-4876. Our knowledgeable staff is ready to help.