New loan model to support women entrepreneurs| Small Business Administration

Helping banks get to “yes” on small business loans for women entrepreneurs has never been more important to America’s economic health then it is right now.

Helping banks get to “yes” on small business loans for women entrepreneurs has never been more important to America’s economic health then it is right now.  That’s because smaller firms have driven our recovery, both nationally and locally. Small businesses are creating nearly 2 out of every 3 private-sector jobs. And, to accomplish all of this, they need capital. Capital to invest in new equipment, new buildings and to meet a growing payroll.

That’s why we’re encouraging banks to join our lending network and increase their lending activity to small business owners especially women and minority-owned firms. We’ve recently rolled out a credit scoring model for SBA small dollar loans of $350,000 or less, combining personal and business credit scores to streamline the lending process. With this model, we are eliminating the requirement for banks to submit cash flow analysis on loans of $350,000 or less, cutting time and the cost of applying for a loan.

This model helps lenders generate more loans and ignite more economic activity. By establishing a quicker, cheaper, and consistent loan process model, existing lenders can do more small-dollar lending. This will inevitably support the growth of small businesses, especially women and minority-owned small businesses because it will expedite access to capital.  Additionally, this credit scoring model is further enhanced by the well-known FICO Small Business Scoring Service Product, therefore both lenders and small businesses win.

Approval of smaller loans is a vital part of our promise of equal opportunity in America.  A study by the Urban Institute found that women and minorities are three to five times more likely to be approved for an SBA-backed loan than a traditional bank loan. In other words, if the SBA doesn’t get capital to these entrepreneurs, often no one will.

Therefore, I call on our local lenders to work with us in Region 10, to quickly advance loans and expand capital access by using our quick credit scoring model for small dollar loans.  Small businesses will benefit and that means our economy will benefit.

For further information, please contact the Seattle District Office at 206-553-7310 or visit us at www.sba.gov/for-lenders.

 

More in Business

Belmont venture offers lavender, much more

The remodeled barn opened as a business in July.

Good economic news in time for the holidays | Don Brunell

But how long will increasing revenue streams last?

Immunizations make a difference | Don Brunell

Venezuela is in deep trouble, partly because its public health system no longer offer the full cycle of vaccinations.

‘Medical spa’ offers variety of skin treatments

Rainier Laser and Aesthetics Center is now open in Enumclaw.

Enumclaw opens new preschool, now enrolling students

Classes for two different age groups are being offered.

Cost matters when businesses hire | Don Brunell

It’s not just wages, but benefits, that companies must consider when hiring or retaining workers.

Military also adjusting to worker shortages | Don Brunell

There are just fewer qualified people in the employment pool to fill jobs which require higher educational standards, more skills, a willingness to work hard, and the dexterity to be part of a team.

Portland shipyard building wave of the future | Don Brunell

While it may not be the first commercial wave energy project, it will be one of the largest.

Carbon fee hurts businesses and families | Don Brunell

A carbon tax would raise over $610 million in its first year and jump to $761 million by 2023, but the added cost from the initiative over 15 years is projected to be 57-cents a gallon.

The Russians are indeed coming | Don Brunell

Russia is now the world’s top wheat producer.

Firehouse Pub: slight change of address but atmosphere remains the same

It was quite the project, renovating the pub’s new home.

Enumclaw’s QFC debuts home delivery service

The first order is free, but other orders will come with a charge.