Momentum within and around the SBA 7(a) loan program continues to build in 2017. Many of our clients have successfully embraced this trend, helping Windsor to reach some amazing milestones. Most importantly, we have continued to demonstrate the ability to scale while maintaining the highest level of compliance through comprehensively designed and rigidly implemented controls.
With proactive communication, in the form of blogs and company updates, we will continue to encourage meaningful conversations with all of our clients and stakeholders in 2017 and beyond.
Loan volume – FY2016 and YTD 2017
In 2016, we achieved our seventh consecutive year of growth (defined as loans funded and loans serviced) through the consistent application of our proven processes. Our loan servicing portfolio surpassed $1 billion at the turn of the new-year, driven by more than $320 million in SBA & USDA loans closed and funded in 2016. We processed another $200 million in technology-enabled SBA small loans, resulting in more than $500 million in loans “on-boarded” in 2016. To provide context, total SBA and USDA loan volume (authorized, not funded) for the entire country was $24.1 billion in FY2016.
These SBA 7(a) and USDA B&I loans made by our clients helped over 1,000 small businesses in 49 states obtain low-cost funding for job creation. With the SBA’s continued emphasis for lenders to participate in the “Small Loan Program” (< $350,000), we are proud to note that nearly 700 of the loans were in this category and helped borrowers most in need of access to capital. And 2017 is off to a great start. During the five months ended May 31, 2017, our SBA volume is consistent, and we’re on pace to double 2016 USDA volume with nearly $30 million in USDA loans closed and funded year to date.
As a compliance-focused organization, regulatory oversight and proactive communication with regulators are the cornerstone of our risk management framework. We are about to complete our seventh consecutive year of SOC 1 Type II audit. This has been a critical element of our internal compliance program since 2010.
Two years ago, we expanded the audit program to include a Network Security Assessment (NSA) audit with penetration testing. Both the SOC and NSA audits, completed by our independent audit firm Plante Moran, continue to validate that our controls are operating effectively. Both reports are available to all of our clients upon request.
Additionally, Windsor is subject to examination by Federal banking agencies under the Bank Service Company Act. We recently completed our interim supervisory examination led by the FDIC in April of this year. This examination is also available to all clients through your primary regulator. Our next full exam is scheduled for January 2019.
Our team continues to grow
Increased loan volume requires additional resources and our team continues to grow. In the past year, we added six more staff to our processing, servicing and risk management departments. We now have a team of 29 professionals to assist our clients.
In September 2016, Will McClain and Mike Breckheimer were promoted to Director and Jeff Nogle was promoted to Vice President. Will, Mike and Jeff have been critical to our success and the success of our clients. We’re excited for them to continue to have an impact on our company and industry in the years to come.
We have also recognized an opportunity to develop our sales and marketing efforts. Over the past seven years, Windsor has grown entirely through client referrals and word-of-mouth, with no formal sales or marketing initiative. To better serve the needs of potential clients, Andrew Sheaffer joined our team in early 2017 to manage our sales and marketing process.
In Q3 2017, we are opening an office in Charleston, SC to provide additional support for our significant growth in the Southeast.
Publication and speaking engagements
It is our commitment to continue to promote meaningful conversations with our clients. With so much opportunity ahead in 2017 and beyond, we want to make sure our clients stay engaged on the most pressing topics and trends in government guaranteed lending.
The content we produce has become our fundamental approach for sharing trends and insights we see as most critical to our clients. We see unique opportunities for government guaranteed lenders and believe an expanded Content Library will help the conversation. Examples of some of our recent topics include:
- Effectively utilizing the USDA business lending programs
- Best practices for hospitality lending
- Best practices for lending to insurance agencies
Additionally, by accepting more speaking invitations to present on SBA topics, we are able to share our insights with more community lenders.
About Windsor Advantage, LLC
Windsor Advantage provides a comprehensive outsourced SBA loan department to lenders nationwide. Services include strategy, prequalification, loan structuring, application processing, loan closing, secondary market sales, loan servicing and intensive servicing, SBA compliance and regulatory exam support. Windsor also provides continuing training and technical assistance to lenders at no cost.
With more than 150 years of collective SBA and USDA lending experience, cutting edge systems and rigid controls, Windsor Advantage is uniquely qualified to support its clients to develop and implement a thoughtful and profitable SBA 7(a) loan program. Windsor Advantage is based in Chicago, IL, with offices in Indianapolis, Los Angeles and Charleston, SC.