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SBA prequalification program

Question
What is the SBA Prequalification program? 
Answer
The prequalification loan program provides for intermediary organizations to assist prospective borrowers in developing loan application packages and securing loans. This program targets low-income borrowers, disabled business owners, new and emerging businesses, veterans, exporters, and rural and specialized industries.

The intermediary works with the applicant to make sure the business plan is complete and that the application is 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.

If the SBA decides the application is eligible creditworthy, it will issue a commitment letter to indicate its willingness to guaranty a loan. The intermediary then helps the borrower locate a lender. 
Brain Trust contributor: Editor, Streetwise Small Business Book of Lists
Related Categories: Banking, Credit, Government Support
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