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Give 'Em Credit

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Smaller loans, under $250,000, can be the toughest loans to underwrite, says Bank of Rhode Island's Lajoie, because they are generally based on the individual business owner's credit score and decisioning is automated. "We have seen time and time again where credit card companies have reduced an individual's credit limits, causing a credit-score drop that leads to a business loan decline," Lajoie says. In some cases, a second look from the underwriting team is then called for. "Some borrowers are able to repair their personal credit to the point that they are able to obtain financing within six to eight weeks," Lajoie says.