The SBA Pre-Qualification Loan Program is a special product under the SBA 7(a) Umbrella Program that targets segments of the small business community that traditionally may have been underserved by the lending community. The basic eligibility criteria, use of proceeds, rate, terms and maturity for Pre-Qual loans are very similar as those for the regular SBA 7(a) loan program (link here?) with some important differences

Eligible applicants may include veterans, exporters, rural business owners, women business owners, minority business owners and owners of businesses in selected industries and geographical areas. Local SBA district offices determine their demographic markets for the program. The maximum loan amount for a Prequalification Loan is $250,000.

Small Business Associates, as an SBA intermediary who has been selected and trained by the SBA, assists the prospective borrower in developing a viable loan application package and submits the complete package to the SBA for expedited consideration. 

Once the SBA approves the application, a letter of preliminary commitment is issued stating the agency’s intent to guarantee the loan. Small Business Associates then assists the borrower in locating a lender offering the most competitive rates and terms.

The intent is that the lender may look more favorably on the loan application with the SBA letter of preliminary commitment than it otherwise might.