NEW YORK, NY // September 13, 2022 – Grasshopper, the client-first digital bank serving the business and innovation economy, today announced that it has received Preferred Lender Program (“PLP”) delegated authority status with the U.S. Small Business Administration (“SBA”). Grasshopper’s PLP approval is a major milestone in its continued growth within the small business banking market.
Grasshopper’s progress in SBA lending has been rapid: the business line was created in October 2021, closed its first loan in February 2022, and has already secured PLP status seven months later. The bank’s team of trusted, veteran lending professionals utilized their close working relationships with the SBA to receive Preferred Lender status in a short period of time. SBA lending is particularly important during the current period of elevated inflation: according to the U.S. Chamber of Commerce, 46% of small businesses are taking out loans to cope with inflation. Grasshopper’s PLP status will ensure that its small business clients have ready access to critical funds to help achieve their goals.
“I am honored and proud to be able to work alongside such an established group of seasoned SBA veterans who continuously go above and beyond for our clients and partners,” said Stephanie Dunn, Grasshopper’s Head of SBA Lending. “This achievement is a testament to the expertise of our team, and our dedication to serving small businesses across the nation. Now, as a U.S. Small Business Administration Preferred Lender, we can combine our quick decisioning with quick closing to provide a next-level customer experience.”
Preferred Lender status allows Grasshopper to remove significant timing and documentation hurdles that can add multiple weeks of closing time onto a transaction, and provides borrowers with the ability to achieve their funding goals sooner. Grasshopper employs an even-balanced ratio of sales, underwriting and closing staff, which means more efficient transactions and less time waiting in line. By receiving this designation, Grasshopper can now leverage the experience and expertise of its veteran team to exponentially grow the SBA department, while furthering its commitment to providing best-in-class customer experience and prudent lending.
Grasshopper’s SBA lending program operates nationwide across all industries, providing thoughtful loan solutions for both real estate and non-real estate based transactions. Grasshopper currently offers the SBA 7(a), SBA 504 and USDA business and industry loans.
The Preferred Lender Program was created by the SBA to streamline procedures and for quick processing of applications in order to provide financial assistance to small businesses. Lenders with “preferred” status have broad authority in making and servicing SBA guaranteed loans and can utilize their own underwriting and servicing policies. To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures.
To learn more about Grasshopper’s SBA offerings or to apply for a loan, visit https://www.grasshopper.bank/lending-solutions/sba-lending/.
About Grasshopper Bank
With total assets of over $500 million, Grasshopper is a client-first digital bank built for the business and innovation economy. Grasshopper replaces the traditional one-size-fits-all approach to banking with a suite of products and services tailored to specific industries, and a passionate team of experts with deep expertise in their fields. Grasshopper’s banking solutions cover small business, venture-backed companies, fintech-focused Banking-as-a-Service (BaaS) and commercial API banking platforms, SBA lending, commercial real estate lending, and yacht financing. Headquartered in New York City, the bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For more information, visit the bank’s website at www.grasshopper.bank or follow on LinkedIn and Twitter.