The SBA has a fast lane to loans with its PLP or Preferred Lender Program.
SBA loans are U.S. government-backed term loans that are available at most banks and commercial lending institutions. In any given year, the SBA can guarantee tens of billions of dollars-worth of loans that support tens of thousands of small businesses. All banks are generally eligible to participate in the SBA loan program although only a few qualify for the PLP.
Under the Preferred Lenders Program (PLP), designated Lenders process, close, service, and liquidate SBA guaranteed loans with reduced requirements for documentation to and prior approval by SBA. To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures. Under this new designation, qualified banks will be able to offer small business customers the full range of SBA loan products as well as streamline and speed up the loan approval process.
What does this mean? A much shorter response time for small business customers, allowing them to get cash into their hands more quickly. So While shopping around among banks, ask them if they belong to the SBA’s Preferred Lenders Program. If they do your loan could get approved in as little as 36 hours versus up to 4 weeks with a traditional SBA loan.