Small Business Administration Loan Review Tool

FI was tasked with bringing standardization, efficiency, and control to credit oversight developing a post-origination loan review system.

Client: Small Business Administration

Challenge: The U.S. Small Business Administration (SBA) guarantees more than 50,000 7(a) loans annually. SBA conducts post-origination reviews to ensure compliance with eligibility and underwriting criteria. Reviews are complex and require expert knowledge of SBA regulations and 7(a) loan documents. SBA sought to in-source reviews being performed by 3rd party consultants while ensuring quality, increasing efficiency, and making reviews more transparent to management.

FI Solution: FI developed the Loan Review Tool (LRT). The LRT streamlines SBA’s review process by embedding credit policy into workflows and business rules that guide reviewers through the review process leading to consistent, accurate, and auditable results.

FI Impact: LRT fundamentally changes how SBA reviews loans, the level and number of resources required to conduct reviews, and SBA’s ability to monitor risk. LRT’s self-guided workflows and intelligent process automation expedite manual tasks while ensuring consistency and accuracy. LRT is estimated to reduce loan review time by 30% and save thousands of hours of work annually.