The Newtek SBA Lending Program has been reopened for all credit unions. Loans ranging from $50,000 to $2,000,000 for your business members can be submitted thru your normal access to NewTracker™, Newtek's Referral System. For information, call Rick Govek at 800-356-9655, ext. 4189.

Provide SBA loans through a referral relationship with Newtek Small Business Finance, a non- bank SBA lender. Any credit union can benefit – from one that has no business lending ability or experience to the most sophisticated of business lenders. This program is available to your credit union free of charge and on a loan-by-loan basis. Your credit union earns a referral fee for each referred loan that Newtek funds.

• Who is Newtek Small Business Finance?
• SBA Loan Referral Program
• How Newtek’s SBA Loan Referral Program Works
• Advantages for Credit Unions that are New to Business Lending
• Advantages for Credit Unions that have their own Member Business Lending Program

Who is Newtek Small Business Finance?

Newtek Small Business Finance is a non-bank SBA lender that is distinguished for utilizing the SBA loan program to its fullest extent. Newtek makes loans ranging from $25,000 to $2 million to both startup and existing small businesses. Funds can be used for a wide range of business needs, including to:

• Open, expand or acquire a business
• Finance working capital
• Purchase equipment
• Purchase owner-occupied real estate and make leasehold improvements
• Refinance existing business debt

Beyond a broad loan policy, Newtek offers an uncommonly efficient and personalized application process. Step-by- step, a Newtek Financial Consultant guides the borrower by answering questions and assisting in the completion of the online loan application.

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SBA Loan Referral Program

As a non-bank SBA lender, Newtek Small Business Finance can fund SBA loans from $25,000 to $2 million for a wide range of business purposes.

What does this mean for your credit union? The opportunity is to refer members to Newtek for business loans that you cannot fund. Whether or not your credit union currently has a member business loan program, Newtek’s SBA Loan Referral Program can improve your ability to meet the financing needs of your business members. At the same time, you will earn a referral fee for each referred loan that Newtek funds.

There is no cost and no obligation to your credit union for participating in this program. The relationship between your credit union and Newtek is strictly on a loan-by-loan basis; therefore, use it whenever and as often as you like.

Will Newtek be able to meet the needs of every member? No; the member must be SBA eligible, a qualified credit risk and serious about obtaining funds for his or her business within 90-120 days. However, as most businesses are SBA eligible, and as Newtek has a broad loan policy, you will be providing your members with an excellent chance of obtaining financing under reasonable terms and conditions.

When you refer a member to Newtek, you can rest-assured that you are dealing with a credit union-friendly company. Newtek is a non-depository institution that understands credit unions and the special relationships between a credit union and its members.

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How Newtek’s SBA Loan Referral Program Works

With assistance from Newtek, your credit union generates business loan referrals, and Newtek does the rest.

Training and Marketing Support
When your credit union adopts Newtek’s SBA Loan Referral Program, Newtek’s Credit Union Team can assist you in educating your employees about their credit union’s new business lending capabilities. Through conference calls, Newtek focuses on making sure that your frontline staff understands how to generate qualified referrals.

Newtek can also work with your marketing team on developing and deploying promotional programs. A menu of marketing options that Newtek has developed is available to you, including brochures, desktop displays, lobby displays, web forms for your website, statement stuffers and direct mail letters. Newtek also welcomes the opportunity to help you design custom materials.

Web-based Referral System
Through Newtek’s web-based Referral System, any of your employees can submit and track the status of referrals. Within 1-2 business days, or on the day and time specified in the referral, a Newtek Financial Consultant contacts your member via telephone to begin the application process.

Newtek Financial Consultant
The Newtek Financial Consultant answers your member’s questions, provides thoughtful guidance and assists your member in the completion of the online application. Newtek’s proprietary online application eliminates a historically paper intensive process, issues a prequalification decision and automatically populates the required SBA forms.

If your member is prequalified, the Newtek Financial Consultant gathers from your member the required supplemental documents to assemble a complete application package.

Underwriting, Closing, Funding and Servicing
Newtek’s underwriters will review the application package and, once it is complete, issue a decision within ten business days. If your member is approved and decides to move forward, Newtek prepares the closing documents, which can take 30-60 days, depending on the nature of the member’s transaction.

The physical closing takes place at your credit union, where Newtek sends a representative to handle the process.

Newtek funds and services the loan, and assumes all financial risk.

Referral Compensation
Within 4-6 weeks of funding, your credit union will receive a referral fee from CUNA.

For more information, please visit www.cusmallbusiness.com or call Newtek at (866) 610-2862.

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Advantages for Credit Unions that are New to Business Lending

• Turn "No" into "Yes!" Yes, you offer business loans. You provide your members with a solution that competes head on with that of other local financial institutions. While your members will technically have obtained their loan from Newtek, they will credit their success to you.

• Avoid the usual prerequisites, and start offering business loans today. With Newtek’s SBA Loan Referral Program, there’s no upfront cost or investment, no need for a member business lending policy, no need for business/SBA lending expertise, no need to have capital available to fund business loans and no need for new staff, processes and systems.

• Focus on building your brand as a small business lending resource prior to investing in an in-house unit and taking potentially damaging risks. This way, you will gauge member demand and best be able to craft an appropriate member business lending policy and unit. After determining the types of loans you want to fund, simply refer those you do not.

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Advantage for Credit Unions that have their own Member Business Lending Program

• Fill in the gaps of your member business lending program and market your credit union as a more complete small business lending resource. Do you make loans to startups? Do you have a maximum loan amount? Are there particular industries in which you do not lend? Are you close to hitting your member business lending cap? When your in-house unit’s decision is to decline a loan that may have merit within a broader loan policy or when your capital for business lending has run thin, the opportunity is to refer your member to Newtek.

For more information, please visit www.cusmallbusiness.com or call Newtek at (866) 610-2862.

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