Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sba Capital topic
No spam. Unsubscribe anytime.
SBA deputy director Winston Labay stresses lender relationships and personal credit for Houston borrowers
Summary
Winston Labay, deputy director of SBA Houston, told HTV that the SBA guarantees lender-originated loans (except disaster loans), urged entrepreneurs to build banking relationships, and noted that personal credit often drives lending decisions; he named local micro-lenders PeopleFund and LiftFund.
Winston Labay, the new deputy director of the Small Business Administration's Houston District Office, told HTV that entrepreneurs seeking SBA-backed financing should start with their existing bank or credit union and cultivate a lending relationship.
"We actually say to them, look, you should start with your organization, your bank or your credit union, wherever your money is," Labay said. He clarified a common misconception: "The SBA does not loan directly unless it's a disaster loan." Instead, the SBA guarantees loans that lenders originate.
Labay emphasized the role of a lender 'champion' — a banker or business-development officer who will present an applicant's case to underwriting committees or loan-review boards. "The relationships are very, very important," he said, adding that relationship-building improves a borrower's chances when loan committees or centralized underwriting teams evaluate applications.
On credit standards, Labay said many lenders place heavier weight on a borrower's personal credit score than on business credit early in a firm's life. He pointed listeners seeking technical assistance to resource partners and identified two Houston micro-lenders that offer both lending and technical help: PeopleFund and LiftFund.
The program also promoted a local funding opportunity: SCORE Houston's 60th-anniversary pitch competition, scheduled for Oct. 3 at the HCC Alief Hayes location, offering cash prizes of $20,000, $10,000 and $5,000 to competitors. The host encouraged entrepreneurs who are awaiting bank decisions to use SCORE resources to prepare pitch materials and business plans.
Labay recommended that small-business owners engage resource partners to prepare stronger loan packages and consult the Houston District Office calendar for lender-related events and workshops.
