The Certified Lenders Program (CLP) is designed to provide expeditious service on loan applications received from lenders who have a successful SBA lending track record and a thorough understanding of SBA policies and procedures. CLP lenders are expected to perform a complete analysis of the application, and in return, the SBA promises a fast loan decision. The SBA still makes the final credit and eligibility decision, but by completing a credit review instead of an independently conducted analysis, the SBA strives for a 3 (working) day turnaround in arriving at its decision.
The key aspect of CLP is the greater utilization of the credit knowledge of the lender's loan officers to shorten the SBA's loan processing time. The SBA still makes an independent determination as to whether the applicant can repay the loan from the profits of the business, but under CLP, the lender’s work is reviewed rather than completely double checked.
How to Become a CLP Lender
To become a certified lender, an SBA field office may nominate a lender. A lender may also request a field office to consider it for CLP status. SBA district directors may approve and renew a lender's CLP status. The district director will consider whether the lender:
- Has the ability to process, close, service and liquidate loans,
- Has a satisfactory performance history with the SBA, including the submission of complete and accurate loan guarantee application packages,
- Has an acceptable SBA purchase rate, and
- Has shown the ability to work well with the local SBA office.
If the district director does not approve a request for CLP status, the lender may appeal to the Associate Administrator of Financial Assistance, whose decision will be final. If the SBA grants CLP status, it applies only in the field office that processed the CLP designation. A CLP lender must execute a Supplemental Guarantee Agreement that will specify a term not to exceed two years.
