Top Six Reasons for SBA Screen Outs
July 11, 2024
Delaney Sexton
Contributing Editor
Top Six Reasons for SBA Screen Outs
On the SBA 7(a) Connect Quarterly Update, Joe McClure from the Loan Guaranty Processing Center shared the top reasons for screen outs. The top three reasons alone account for 82% of screen outs. Here is what to look out for as lenders:
- 40% of screen outs were caused by financial statements and/or projections.
- 32% of screen outs were due to an incomplete credit memo.
- 10% of screen outs were because of debt refinance.
- 7% of screen outs were connected to other items/issues that were incomplete.
- 6% of screen outs were because of change of ownership.
- 5% of screen outs were caused by an issue with life insurance.