The Small Business Administration has given its standard operating procedure handbook an extreme makeover as part of its mission to make its loan programs easier to use.
Today the SBA is expected to release a new version of its manual online; it will be 400 pages, or roughly 600 slimmer than the current one.
Redundancies and inconsistencies that made for confusing language have been replaced with bullet points in clear 12-point type and lots of white space, said Eric Zarnikow, associate administrator for the SBA's office of capital access.
"Lenders have told us" that the manual "was too long, too complicated, and an impediment," Mr. Zarnikow said. "We feel that the new SOP is much more streamlined and user-friendly and will help lenders understand our program and use our products."
Jim Hammersley, director of the SBA's loan programs division, said the document had its most recent "tune-up" in 2000 but has not had a major overhaul in a decade.
The new version was drafted with the lenders in mind, rather than the SBA staff. Mr. Zarnikow said the manual, formatted as a PDF file, is easy to navigate with search tools and has hyperlinks to all forms and regulations.
The revision does not include much policy change, but there are some clarifications. For instance, bail bond companies, which traditionally have been ineligible for SBA loans, were not specifically listed in the former procedure document. They were added in the revision.
The effort to overhaul the manual began a year ago with an outreach to lenders and trade groups for suggestions.
From there, the procedures were divided in 16 sections, and subject matter experts in various field offices were assigned to create the first draft of the revision. The drafts were compiled and streamlined to create the new document, Mr. Hammersley said. According to Mr. Zarnikow, the effort's success will be measured by the feedback the SBA gets from lenders.
The overhaul is part of SBA Administrator Steven Preston's wide-ranging effort to encourage more banks, particularly small ones, to make SBA-backed loans.
This year the agency launched its Rural Lender Advantage Program in Colorado, Montana, South Dakota, North Dakota, Utah, and Wyoming.
That program offers a streamlined, three-page application for loans of less than $300,000 for banks in those states that make fewer than 20 SBA-backed loans a year. Applicants are also promised a loan decision within three to five business days.
