Published June 2004

SBA: E-Tran to save lenders time, money

SCBJ Staff

In May, the U.S. Small Business Administration rolled out E-Tran, a Web-based loan application process expected to save lenders substantial time and resources when submitting a loan to the SBA, the agency said.

With E-Tran, the SBA has introduced a number of channels for participating lenders, including a Web page for entering loan information for single loans and a secure Web site capable of accepting multiple applications simultaneously.

Also, in response to lender requests, the agency has opened the E-Tran technology to software providers for the lending industry. So, in addition to submitting loans electronically directly to the SBA, lenders who subscribe to those services can submit loans directly to the SBA via these software providers.

Bankers Systems Inc., a leading provider of compliance resource solutions for financial organizations, will be the first provider in the SBA lending marketplace to take advantage of E-Tran through the company’s proprietary software, which is being released to participating lenders.

“We are excited to make this technology available to our partners through leading software intermediaries. We hope to increase the number of intermediaries that we work with in the future to reduce the cost of loan origination to all of our lenders,” SBA Administrator Hector Barreto said.

With the introduction of E-Tran, lenders will be able to have direct loan submission and immediate response from the SBA, thus reducing the 24-hour response time by the agency.

“By using technology, we are able to dramatically decrease the time and cost associated with originating a loan,” Barreto said.

Back to the top/June 2004 Main Menu