Streamline lending around a modern, user-centered experience

Challenge

• The Small Business Association (SBA) 7a secondary loan market process is inefficient and suffers from a poor user experience
• This market has slow price discovery times (around 24 hours) across hundreds of sellers, leading to inconsistent pricing and an opaque issuance process for borrowers
• Sellers are required to submit many data fields manually to each originator, which leads to inconsistency and errors

Solution

• Streamline SBA 7a lending with transparent, real-time price discovery and loan execution
• Create a DLT-based profile for SBA 7a borrowers with immutable reporting of documents and data required for secondary loan issuance
• Manage the lifecycle of secondary SBA 7a loans on chain, removing the risk of data inconsistency across parties

Results

• Shortened the time needed to conduct price discovery from hours to minutes
• Added deal velocity to the 20-30K SBA loans issued annually by 450 originators, improving the 40-50% IRR
• Improved market premiums from 10-20% for secondary market sales