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Frequently Asked Questions for Lenders: Underwriting

how long does it take to underwrite a loan

No, the maximum guarantee is the lesser of 50% of the loan or $750,000 for loans other than revolving working capital. For revolving working capital loans, the maximum guarantee is the lesser of 50% of the loan or $200,000.

WHEDA reviews nine criteria when we underwrite an application. These criteria make the underwriting process more objective and predictable for both WHEDA and lenders.

Your borrower does not need to meet each criteria's minimum guideline to be approved for a guarantee. If your borrower doesn't meet established guidelines for some of the criteria, but those weaknesses can be offset or mitigated to reduce the loan's risk, the request may still be approved.

Each situation is unique. Refer to WHEDA's Quick Reference to Underwriting

Guidelines  when preparing a WHEDA Small Business Guarantee application.

In most cases we require guarantees of anyone having an ownership interest of 20% or greater in the business.

What financing options can we use in combination with the WHEDA Small Business Guarantee? 

We encourage you to combine as many resources when completing a financing package for your customer. Other sources that have been combined with the WHEDA Small Business Guarantee include the U.S. Small Business Administration (SBA), U.S. Department of Agriculture Rural Development, Wisconsin Economic Development Corporation and county or local revolving loan fund financing. Combining sources helps reduce the risk of each party involved.

WHEDA reviews the complete application and renders a decision upon completion of its underwriting process.

Category: Credit

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