The Future is Now: E-Tran. Office of Performance and Systems Management

Transcription

1 The Future is Now: E-Tran Office of Performance and Systems Management

2 What is E-tran? E-Tran is an SBA loan guaranty origination/servicing solution that: Leverages internet technology to reduce the turnaround time on loan guaranty requests Is integrated into your SBA software products and enables you submit electronically from your existing screens Provides increased efficiency and decreased costs in the loan guaranty origination and servicing processes 2

3 Who is Eligible to Use E-Tran? E-Tran Origination All lenders must use for delegated and nondelegated loans E-Tran Servicing All lenders are eligible 3

4 Accessing E-Tran E-Tran Options loan data file transfer in XML format (from a software vendor s product or from a bank s proprietary system) to the SBA s E-Tran database A Web page where lenders can enter loan information on individual loans 4

5 Step 1 - Request GLS User ID/Password Apply on-line at Tips: User ID make up your own must be between 8 and 15 characters long Contact info start with zip code and select lookup zip Location ID this will be for the main bank location not by branch Logins should NOT be shared; each user should set up their own User ID & Password Once you have a user ID and Password, request Access 5

6 GLS Login Request User ID 6

7 Step 2 - Request Access Tips: Password requirements At least 8 characters, must contain 3 unique character types Select access to: E-Tran Origination enter/edit E-Tran Servicing update PIMS (Partner Information Management System) 7A Connect reporting information Lender s location ID must be entered 7

8 To begin using E -Tran Access the GLS system with your user ID and password To enter a new loan request choose: Electronic Lending Origination (E-Tran) to enter a new loan To service an existing loan choose: Electronic Lending Servicing (E-Tran) To retrieve Lender information choose: Partner Information Management System (PIMS) 8

9 GLS Adding or Changing Location IDs To change location IDs, select the pencil and paper icon to reactivate the box. Enter a new location ID and select Submit at the bottom of the screen 9

10 GLS Approved Access - Hyperlinks When your access is approved, select the desired hyperlink 10

11 OPSM s Performance Management Division provides lenders with technical support for all E-tran questions Account Setup Issues with: New account Access to applications Changed institutions Old requests still pending List of employees with access Contact Primary: Cheryl Walker Cheryl.Walker@sba.gov (202) Secondary: Hardy Slay Hardy.Slay@sba.gov (916) Need Help? Loan Processing Issues with: Loan structure - EPCOC; Sole proprietorship Mandatory ownership Incorrect names Credit scoring Lender agreements Transmissions issues Vendor communications Contact Primary: Hardy Slay Hardy.Slay@sba.gov (916) Secondary: Ryan Gerald Ryan.Gerald@sba.gov (202) Tertiary: Glenn Hannon Glenn.Hannon@sba.gov (202) Complex / Intricate Issues with: Policy interpretation Center/District issues Training requests Escalations of any of the above Contact Primary: Glenn Hannon Glenn.Hannon@sba.gov (202) Secondary: Ryan Gerald Ryan.Gerald@sba.gov (202)

12 Obtaining an SBSS credit score in E-tran for SLA & loans <= $350k 12

13 Financials Application Business bureau Credit bureau SBSS scores use commercial and consumer data to predict purchase risk FICO score Example Qualified Profile SBSS Score Example Disqualified Profile SBSS Score # of inquiries 0 10 Average months in file Etc.: Credit utilization Utilization: 0. Delinquencies: 0. Utilization: >75%. Delinquencies: 6. % sat. trade lines 100% 55% Time as current owner More than 2 years Less than 2 years Total # suits 0 2 Etc.: Paydex, trade lines Good paydex. 4 lines; 0 past terms. Poor paydex. 1 line; avg. 60 days delinquent. DDA total balance More than $75k Less than $75k Time as current owner More than 2 years Less than 2 years Principals combined net worth More than $100k Less than $100k Etc.: Sales, employees, industry Sales: >$500k. Employees: >2. Sales: <$500k. Employees: 0. Mining industry. Cash-to-assets ratio High Low Current ratio 100% 55% EBIT-to-interest ratio High Low Source: Dun & Bradstreet, Fair Isaac Corp. 13

14 Before obtaining an SBSS score you must input information about the small business borrower and small business principals into E-tran Business Data Required Business legal name Business address Business phone Tax ID (EIN) DUNS number Principal Data Required First name Last name SSN Address Required for each principal owner with 20% or more equity share of the applicant small business Once all required information is entered into E-tran, the Check Credit Score icon will appear Note: An SBSS score can be generated by entering the above information into E-tran (as described in the successive slides) however the loan cannot be submitted for an SBA loan number until the application is complete 14

15 Getting started Choose New Application Choose Loan processing method 7(a) General (ie: Standard 7(a) loan) Builders Line of Credit (CAPLine) Community Advantage Initiative Contract Loan Line of Credit (CAPLine) Export Express Preferred Lenders Program SBA Express Program Small Loan Advantage (SLA) Seasonal Line of Credit (CAPLine) Standard Asset Base Line of Credit (CAPLine) 15

16 After beginning the new application, select Processing Method: Small Loan Advantage Initiative, etc. Select Small Loan Advantage Initiative as your Processing Method Then select Save / Next E-tran tip: Always verify your bank information when beginning a new application 16

17 Application Info EPC/OC and Reconsideration (scores <=140) If your application scores below 140 and you would like to resubmit for reconsideration, copy the application, select yes for Reconsideration and submit without rescoring. 17

18 Project Information Lookup Zip Enter zip code and select Lookup Zip to auto populate the city and state. 18

19 SBA has implemented FRANdata Unique Numbering System (FRUNS) numbers and a franchise code search tool 1. The E-tran Project Info screen will ask the lender if the borrower is a franchise 2. When Yes is selected the FRUNS number lookup tool will open automatically 3. Select the number next to the correct franchise name then click Save / Next * If a FRUNS number cannot be found contact FRANdata at to request a FRUNS number be created 19

20 Select New Borrower and enter the borrower s business EIN Select New Borrower Enter the borrower s business EIN Then select Save / Next E-tran tip: For Sole Proprietor - select Business & SSN For Corp., Partnership, or LLC - select Business / EIN For EPC - select Business / EIN 20

21 Enter the remaining small business applicant business data in the borrower screen E-tran tip: If a Sole Proprietor enter the personal name in Name box and the business name in Trade Name box. Otherwise enter business name in Name box Once the required borrower business information is entered select Save / Next 21

22 Select New Principal and complete screen for each principal with a 20%or greater ownership share Select New Principal Once the required borrower principal information is entered select Save / Next 22

23 Once all required borrower business and principal information has been entered, select Check Credit Score When the borrower and principal information is complete, select Check Credit Score 23

24 Select the business and up to six principals for scoring then click Request Credit Report for Primary Business Review the loan information for accuracy Select the business and up to six principals for scoring then click Request Credit Report for Primary Business at the bottom of the page 24

25 After a brief moment your SBSS score will appear SBSS Score E-tran tip: Just did a SLA and now you need the same information entered for a LOC or vice versa? Just click the Copy button and it will copy everything you entered and bring you to a new first page. 25

26 Validation Correct errors before Submitting **Disregard Error Code Numbers -Based on Error Text, navigate to appropriate section of the loan to correct error 26

27 Use the E-tran document upload tool to easily upload key loan documentation to SBA Documents that can be labeled and uploaded using the document upload tool include: Form 1920 Form 1919 Form 2301 Form 159 Form 601 For 912 Form 1050 Transfer of Participation Agreement Request for Loan reinstatement Business Financials And much, much more! 27

28 Select Documents Icon Access the document upload feature by selecting the Documents icon at the top of the screen After clicking on Documents, the system will take you to a screen with the existing documents for that application. If you want to add additional documents select Upload. 28

29 Document Upload Continued Click on Add file(s) to choose the file you want to upload. 29

30 Document Upload Continued Click on the file you want to upload from your computer. It needs to be a.pdf or.zip file that is no larger than 10 MB. 30

31 Document Upload Continued Before clicking Upload file(s), you should choose your Document Type by clicking in that field and choosing a value from the dropdown menu. Then click Upload file(s). After clicking Upload file(s), you will see a message asking you to wait as your uploaded file is saved. You will be able to see your status in the progress column. 31

32 Document Upload Continued When your upload and save is complete you can remove your file (by clicking the Remove selected file(s) button), click on Clear All file(s) to remove all files uploaded for this application, click on Documents to see the list of existing documents for this application or click on Exit to leave the Document Upload function. 32

33 Search Function 33

34 More E-tran tips and frequently asked questions 34

35 What Can I Skip?! Collateral screen optional If Principal is selected at Guarantor- no need to re-enter as a Guarantor Financial Information screens optional -can be a source of many validation errors Financial information may be uploaded using the document upload feature Skip it all & use the COPY button You can use that feature to enter a companion loan, just copy the first application and modify to match the second loan s terms 35

36 E-tran tips and frequently asked questions Be patient. The first time you use E-tran is always the hardest Only the blue shaded boxes are required to be filled in When entering an address, always enter the zip code first and select the grey Lookup Zip button This will prepopulate the city and state You will get an error code if you do not do this When entering an SSN or EIN number a pre-populated name may appear This means that the borrower has a previous or current SBA loan This can only be cleared by SBA If this information appears incorrect please contact your district office with the application number and pertinent information including what name you need added to the application and we will get the issue resolved Use the navigation tree as much as possible the Back button on your browser will sometimes boot you out of E-tran 36

37 E-tran tips and frequently asked questions Use of Proceeds screen Amounts must be rounded up to the nearest hundredth If including guaranty fee in financing, you must adjust another use of proceed as this fee cannot be rounded up or down Financials screen Financials are not required to be filled out in E-tran However, they must be retained in the bank file for future audits If you start filling in the Balance Sheet page it must be completed The system will not accept negative Net Worth or Tangible Net Worth Financials can also be uploaded using the Document Upload feature Be sure to include a note in the Lender Comments screen Collateral screen If you start filling out the collateral page it must be completed in full This screen is not required for Express and SLA loans but please make a comment in the Lender Comments screen and document collateral on the loan authorization 37

38 E-tran tips and frequently asked questions Principals screen Screen must be completed for each 20% owner of the business Every once in a while you ll get an error when you hit Validate that has something to do with the percent ownership Attempt returning to the Principal screen and highlighting and re-entering the ownership percentage (sometimes this fixes the validation error) At least 80% total ownership must be accounted for If there are many owners with less than 20% ownership, you may need to force this screen and make a notation in Lender Comments Guarantors screen Principals do not need to be re-entered if they were selected as guarantors on the principal screen If there are additional guarantors, they must be added here Error codes Multiple validation errors are often cleared with one fix Don t pay attention to the Error Code, but look at the Text as it s telling you what part of the system to go back to (using the navigation tree) 38

39 E-tran tips and frequently asked questions Lender Comments screen Lender Comments should be brief as supporting documents can be loaded using the Document Upload tool For Example: CAIVRS Completed 00/00/00- no records found see file Key Man Life insurance not required due to contingency plan with experienced employee Collateral - All business assets used see authorization Business income has been verified via a review of the IRS Tax Transcripts- see file Insurance requirements - flood, collateral hazard insurance obtained Credit elsewhere test performed Personal Resource Test completed no injection needed Screen Out status If your loan goes into screen out status you will receive a screen out letter from the Loan Guaranty Processing Center (LGPC) explaining the steps that need to be taken to complete the loan approval process For questions on screen outs contact the LGPC at 7aquestions@sba.gov 39

40 Guidance on handling affiliates in E-tran Definition: Affiliation exists when one individual or entity controls or has the power to control another or a third party or parties controls or has the power to control both SBA considers factors such as ownership, management, previous relationships with or ties to another entity, and contractual relationships when determining whether affiliation exists. The complete definition of affiliation is found at 13 CFR (See also, 13 CFR and ) E-Tran Guidance: Primary Borrower Affiliate will default to Yes Principal Owner of >=50% of business Affiliate will default to Yes Non Primary Borrower, Principal Owner of <50% of business, and Guarantors A radio button will be displayed requiring the lender to select whether the individual is an affiliate 40

41 41 7(a) Connect

42 Obtaining access to 7(a) Connect is simple Instructions Go to the GLS Website If you do not have a GLS account select the Request SBA User ID button on the left hand side of screen Once you have a GLS account enter your user id and password to login On the top of the screen, select the Access button Find 7A Connect Access only for SBA 7a Lenders and SBA Employees and click the folder icon Check the box that says Read 7a Connect reports. and enter your bank s Location ID Scroll to the bottom of the page and select the Submit button Your access request will be reviewed by IT Security. When the review is complete you will receive an e- mail that you have access to 7(a) Connect The next time you log into GLS 7(a) Connect will be listed in your available applications GLS Access button 7(a) Connect will appear in your available applications after you re application has been reviewed 42

43 OPSM created 7(a) Connect to provide lenders better access to their SBA data Lenders used to have to go to several sources to access their SBA data 7(a) Connect give lenders one place to access information from several OCA systems: LAS (Loan Accounting System) L/LMS (OCRM / Lender Portal) 504 Third Party Data 1502 Reporting Status 7(a) Connect can be accessed through SBA s GLS system 7(a) Connect data can be viewed on-line or exported to excel for further analysis 7(a) Connect accounts have been set up for almost 500 users at over 350 banks Sample of 7(a) Connect Data Fields Borrower Info Borrower Name Borrower Address Proceed State NAICS Number of Employees Transaction Dates Approval Date Disbursement Date Liquidation Date Purchase Date Charge Off Date Transaction Amounts Approval Amount Disbursed Amount Liquidation Amount Purchase Amount Charge Off Amount Loan Status Outstanding Balance 1502 Flag Guaranty Fee Payment Status Secondary Market Status Check Issued Amount Lender Portal Metrics Lender Risk Rating Past Due Rate Delinquency Rate 12 Month Purchase Rate Average SBPS Score 43

44 The 7(a) Connect report screen provides annual 7(a) and 504 third party lending data and lender portal rating metrics in one place Hyperlinks or the custom date range feature can be used to pull up the loan detail report 44

45 The 7(a) Connect loan detail report provides a wealth of loan data and can be exported to excel for further analysis The save button exports the loan level detail report to excel 45

46 Unilateral servicing and liquidation actions in E-tran 46

47 Many servicing actions can be easily performed in E-tran and require no separate notification to SBA Prior to Final Disbursement Change interest rate prior to initial disbursement Change loan maturity date Change obligor s address or legal/trade name of business Change obligor s address or name of business Cancel SBA guaranty prior to initial disbursement After Final Disbursement Extend maturity prior to stated maturity date for loans in regular servicing Change obligor s address or name of business Transfer loan into liquidation status Change a loan to PIF status Change loan from revolving to non-revolving For more information on SBA notification and approval of servicing and liquidation actions see SOP and SBA s Servicing and Liquidation Actions 7(a) Lender Matrix 47

48 E-tran changes for SOP (f) 48

49 Electronic loan authorization pilot 49

50 Lenders will soon be able to create the SBA loan authorization document in E-tran First select the Loan Authorization button 50

51 Complete the Additional Conditions screen and then select Loan Document After completing the screen select the Loan Document button 51

52 Select the Generate Doc button to create the loan authorization Select the Generate Doc button to create the loan authorization 52

53 The completed loan authorization will open up shortly 53