A pool originator is an entity that has been approved by the Small Business Administration (SBA) to combine loan interests under the SBA's Secondary Market Guarantee Program. This program is designed to facilitate the pooling of loans, specifically for first lien position 504 loans, which are typically used to finance real estate and equipment for small businesses.
The term "pool originator" is primarily used in the context of business financing and loan management. It is relevant in the following areas:
Entities acting as pool originators help streamline the loan process, making it easier for small businesses to access funding. Users can manage related forms and procedures through resources like US Legal Forms, which provide templates for necessary documentation.
Here are a couple of examples of abatement:
Example 1: A bank becomes a pool originator and pools several 504 loans to offer them as a single investment product to investors, thereby providing small businesses with easier access to capital.
Example 2: A financial institution partners with the SBA to create a pool of loans specifically for small businesses looking to purchase commercial real estate. (hypothetical example)
| Term | Definition | Difference |
|---|---|---|
| Loan Servicer | An entity that manages a loan after it has been issued. | Pool originators create loan pools, while loan servicers manage existing loans. |
| SBA Lender | A lender that provides loans backed by the SBA. | Pool originators specifically pool loans, whereas SBA lenders may not. |
If you are interested in working with a pool originator, consider the following steps:
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