SBA 7(a) Lender Quality Rankings
Methodology
Each SBA 7(a) lender receives a composite score (0-100) based on four equally-weighted components: historical chargeoff performance (25 pts), SBA concentration health (25 pts), bank financial health from FDIC data (25 pts), and trend trajectory (25 pts). Scores convert to letter grades from A+ (90-100) to F (0-39).
Why Lender Quality Matters
Lender quality affects total CPR on SBA 7(a) guaranteed portions. A default on the guaranteed portion is paid at par by the SBA, so to the investor it arrives as a prepayment. Lenders with higher chargeoff rates therefore produce loans with faster involuntary prepayment, which matters most on pools bought at a premium. Current grades and the measured effect for a given lender are available to subscribers.
Data Sources
- SBA FOIA Loan Data
- SBA 7(a) and 504 loan records including loan outcomes, chargeoff amounts, and borrower characteristics
- FDIC Call Reports
- Quarterly bank financial data including Tier 1 capital, NPL ratios, efficiency ratios, and total assets
- NCUA 5300 Call Reports
- Credit union financial data for CU SBA lenders
Access Full Lender Quality Data
LoanBook subscribers can search, filter, and rank scored SBA lenders with full vintage analysis and NAICS specialization data.