It is a subject that comes up quite often- just what is a Lender Service Provider? In its simplest form, an LSP acts as an agent who carries out specific SBA Lender Functions from origination, to servicing and when necessary, to liquidation. An LSP can help a new SBA Lender ramp up their process while they staff up or an LSP can help an existing Lender handle overflow in areas where they are shorthanded, such as underwriting or liquidations. LSPs can be as involved in all phases of the SBA loan, including originating, closing, servicing, and liquidating SBA business loans, as the Lender wishes them to be.
An LSP should be experienced in every detail in the complex SBA rules and regulations and its services should augment your processes. An LSP also provides training for employees so that once it steps away, your SBA department will function with full efficiency, full compliance and are able to understand what it takes to keep guarantees intact. It is important to remember that SBA requires the Lender to maintain, at all times, control of their program and the experience to support that program.
Partnering with an LSP strengthens your SBA capabilities with a minimal start-up and maintenance cost. An LSP is contracted to work with a financial institution and those contracts must contain specific language that is required and is subject to approval by the SBA.
At LRM, we believe that assisting the small business communities and entrepreneurs not only strengthens the economy for everyone, it creates a positive brand for our clients that extends into other banking services that they offer. We build a pathway that is easy to follow. We build confidence. If there ever was a win-win scenario, bringing in an LSP for individual SBA accounts or whole portfolios is one of them. With an LSP working by your side, you can be sure you have what you need to service a strong and healthy SBA portfolio.
Whether your institution needs a little advice, help with an existing problem or a comprehensive SBA loan review, contact LRM Lender Consultants at 877-576-0819 and let’s talk about how LRM can be a key resource for all of your SBA lending needs.