SBA Promotes New Risk Rating Model

The SBA is proposing (comments due 6/30/2014) a new Risk Rating System for each active 7(a) Lender and Certified Development Company (CDC). The redeveloped model expands specific products into various categories (e.g., 5 for the 7a program) as well as number of factors used to expand risk. The scoring system is designed to provide a more predictive outlook on portfolios. [4/29]