Between the mid 1970’s and 1982, the Small Business Administration began to issue Small Business Lending Company licenses which resulted in the 14 licensees that exist today. There have been no new licenses issued pursuant to a government moratorium on the issuance of new SBLC licenses since that time.
The sole purpose of an SBLC is to grant small business loans under the 7(a) Government Guaranteed Loan Program nationwide. While every bank and credit union is eligible to participate under the 7(a) program, under their respective banking and credit union licenses the SBLC’s operate under very different and much more lenient lending criteria. SBLC’s have only one program regulator (that being the SBA who’s sole purpose is to create jobs through the granting of loans to startup and small businesses), while banks and credit unions have the additional regulation imposed on them from their bank and credit union regulators. As a result, many small business loan applicants have found that it ultimately may easier to obtain a business loan from an SBLC, because it is only regulated by one regulating entity.
Simply put, The Loan Source Inc. is a small privately held family owned business. We are not bankers in the traditional sense of the word “banker.” We lend our own money and the money we are responsible for, which includes borrowed funds and investor funds. Our credit committee is a committee of the (Steve, Terri and Joshua Kravitz), not a committee of seven, ten or more as with traditional banks, credit unions and the other SBLC’s. What that translates into, is you meet and work with us, the decision makers. You do not have to ‘upsell’ your loan application, up the ladder, as you would have to, with other lenders, through various approval levels of authority to eventually (if you are very lucky) find your application in front of a group of people who most likely have never ran a business, never had to make payroll, or never had to put everything on the line to feed their families. Like you, we are entrepreneurs. We understand you are much more than a credit score; you have a dream, your business is your life, you have evolved to taking on a level of personal responsibility for yourself, your family, your employees and their families, and we understand when you don’t know where to go or what to do. We stand in the same shoes you do because, like you, we are the final decision maker for our company just as you are the final decision maker for your company.
The people that make the credit decisions for banks, credit unions, the other SBLC’s are not investing their own money in their lending decisions. So their decisions are based on making the most money for themselves, protecting their job, and lastly, making the most money for their lending institution. Our approach is different; we structure our borrower’s transactions for your success, because when you succeed we succeed. If that means providing a lower interest rate, more working capital than a bank would traditionally grant you or giving you a loan with a longer payout term, so you can have smaller monthly payments’, that is what we try to do, because (once again) your success is our success. And, finally, we are not private “hard money” lenders; we are government regulated which requires us to fully disclose the transaction, to use government forms, documents and computer systems, and to be regularly audited by our government regulators. What that means for you is, if you have any issues with us, you can call the SBA directly to make sure we are doing things right!