Credit Union Loan Services

Linmar Capital is a loan accounting service company in SBA (Small Business Administration) and USDA government guaranteed loans sold in the secondary market. The secondary market improves profitability and liquidity for credit unions who make business loans guaranteed by the SBA by selling the guaranteed portions of the loans in the secondary market. We assist credit unions in reducing operating costs related to the account payment processing and reporting.

The loan accounting service assists credit unions in satisfying the requirements of the secondary market as well as assisting investors in participating in the secondary market.  These services provide credit unions with the knowledge and experience to compete with larger banks in providing alternate funding for companies to expand their products and services.

Revenue from selling a loan into the secondary market is derived from three areas:

• Premium from the sale of the guaranteed portion.

• Service fee during the life of the loan.

• Float of borrower's loan payment.

The amount of premium earned in the secondary market is determined by the size, coupon and maturity on the loan.

One of the benefits of the SBA 7(a) program is that only the non-guaranteed portion of the loan counts toward the regulatory loan limit, giving credit unions more liquidity and flexibility to accept qualified as well as borderline business loans. 

For credit unions concerned about adding risk to their balance sheet, the SBA is a solution that allows credit unions to fulfill the business needs of their members rather than refer them to a competitor.

To assist credit unions to compete in the secondary market program, Linmar Capital provides transaction processing, record keeping and loan servicing functions. In addition the following services are offered:

• Document review – review documents for sale or purchases.

• Data Collection – collect and process loan status information.

• Records – maintain computerized records of account history and security ownership.

• Other services:

• Settlement intermediary.

• Maintain and report account balances on investments.

• Monitor and report loan defaults and delinquencies.

• Report transactions processed for investor reports.

• Maintain accurate servicing and accounting records.

The relationship between Linmar Capital and your credit union is on a loan-by loan basis. Please call us with any questions at 1-888-324-2002 or email us at sales@linmarcapital.com