The U.S. Small Business Administration has launched a new online tool called LINC (Leveraging Information and Networks to access Capital) to connect borrowers looking for an SBA loan to lenders within 48 hours.
Maria Contreras-Sweet, the SBA’s administrator, in a press release said the tool requires small-business owners to fill out a 20-question form and will connect them with lenders within a 48-hour window. “By directly connecting with prospective borrowers, the agency will be able to provide more guidance and ensure more capital is reaching our nation”™s entrepreneurs,” she said.
According to Kellie LeDet, an SBA regional administrator who oversees the agency”™s programs and services for New Jersey, New York, Puerto Rico and the U.S. Virgin Islands, once a borrower completes the online form it will be sent to every lender in that borrower”™s county, as well as to other lenders with a regional or national reach. Once lenders have reviewed the information, they will respond within two days, with no fees or commitment to the prospective borrower.
“This option frees entrepreneurs from the limited choices they may have,” LeDet said in the press release. “Using this technology will enhance a borrower’s position with lenders and provide them with alternative sources of finance.”
LeDet said the agency plans to roll out LINC in waves. It will begin by offering connections with nonprofit lenders that offer free financial advice and specialize in microlending, loans in the SBA’s Community Advantage program and real estate financing. The SBA will look to add more traditional banks in the future, LeDet said.
The SBA reported 124 lenders nationwide are participating in LINC.
