How to grow from micro to small business lending efficiently?

[Community Development Banking List]

Original message from: adina@consultingforchange.com

Several of my clients are loan funds that have primarily or only offered
micro-loans, and are now considering moving into offering small business
loans. They are trying to figure out what are the appropriate levels of
underwriting and loan servicing for different size loans. To be more
specific, I am trying to understand how CDFIs offer loans from $5,000 to
$500,000 answer the following kinds of questions:



* How do you underwrite differently for different size loans or
stage of business?

* What are the natural "break points" for your different approaches
to underwriting?

* Do you monitor your loan portfolio differently based on size of
loan? Risk rating? Other factors?

* Do you have different TA resources based on size of loan or stage
of business available for your borrowers?



I understand that this could be quite a bit to write down in an e-mail. If
you would prefer to talk with me about it over the phone, I would be happy
to do that.



Thanks in advance for your willingness to share your experience and
knowledge.







Adina Abramowitz

Consulting for Change

<mailto:adina@consultingforchange.com> adina@consultingforchange.com

<http://www.consultingforchange.com> www.consultingforchange.com

215-247-1544