The fintech-enabled, originating GGL Lender Service Provider
Transforming the Government-Guaranteed Lending relationship with Origination on Demand – Powered by Next Gen AI Technology in a Multi-Lender Marketplace
Confidentiality Notice
Confidential & Proprietary Information
This presentation contains confidential and proprietary information belonging to Lendesca. It is being provided solely for the purpose of evaluating a potential business relationship and may not be used for any other purpose.
The information contained herein may not be reproduced, distributed, disclosed, or otherwise shared, in whole or in part, without the prior written consent of Lendesca.
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All information is provided as of the date of this presentation and is subject to change without notice.
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The Asset Class Is Proven. The Model Is Broken.
Until Now…
A new government-guaranteed lending operating model is emerging — one that provides access to high-quality assets without the burden of heavy infrastructure.
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Why We’re Uniquely Qualified to Reshape this Market:
The Lendesca launch team brings rare, end-to-end experience across government-guaranteed loans ("GGL"). Collectively, we have funded over $20+ billion in SBA and USDA loans and have operated from every critical seat in the government-guaranteed lending ecosystem over many decades. The team includes:
- Bank holding company President & CEO and executive leadership team members
- SBA-approved LSP Presidents & CEOs and executive leadership team members
- SBLC Founder/President/CEO and executive leadership team members
- FinTech execs and dev teams that have built and deployed solutions for multiple FIs, including BofA and Chase
- Several additional SBA lender executive leadership team members and additional experienced startup executives
- Capital markets and secondary market execution expertise
- Numerous GGL accolades, awards, national media mentions, Congressional testimony, publications, and so on
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Our Team has Proven Execution at Scale
Our perspective is grounded in recent, auditable performance inside regulated institutions.
$400MM SBA & USDA Production (2025)
Recent production inside a regulated depository institution
Top 100 SBA 7(a) Lender (2019–2022 & 2025)
Consistent national ranking across multiple years
USDA B&I Lender of the Year (2024)
National recognition for program execution and impact
~300,000 PPP Loans for over $4.72B
Technology-enabled lending at unprecedented scale while helping shape PPP & PPPLF regulations
$218MM SBA 7(a) Approvals — FY25
Ranked #33 nationally (top 2.5%) even though platform launched January 2, 2024
$184MM Revenue / $112MM Net Income
Generated during the same 2019–2022 period
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Why Government-Guaranteed Lending?
Earnings, Balance Sheet, Capital Efficiency & Regulatory Benefits
- Offers among the highest risk-adjusted returns for banks
- Increases yield while significantly reducing net credit risk
- Enhances asset yield without introducing balance sheet stress
- Highly capital-efficient, reducing credit exposure to as little as 5%
- Converts excess liquidity into improved ROA and ROE
- Often generates CRA credit, including automatic eligibility in many SBA and USDA use cases
- Recent five-year (fiscal) average charge off rate, 7(a) loan program-wide, is 0.436% of UPB* compared with 0.58% for C&I loans and 2.7% for consumer loans in the most recent quarter.**
Bottom Line: government-guaranteed lending allows banks to earn more with less risk, if executed correctly.
*Source: SBA WDS_ChargeOffRates_Report_20250630
**Federal Reserve Q3 2025 report
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The Market Insight
Government-guaranteed lending has a supply problem disguised as a demand problem.
Qualified borrowers exist, but the number of active SBA lenders is shrinking… and the ability to originate, underwrite, and fund these loans quickly, efficiently, and consistently at scale is and has always been massively constrained.
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We’ve seen the same problems from every seat:
Inside the Bank/Credit Union/SBLC
- Capital constrained by process inefficiency
- GGL teams difficult to scale without risk creep
- Fragmented technology solving pieces, not outcomes
- New technology usage dependent on staff adoption
- Operational drag is underestimated
- Deposits without efficient deployment paths
Inside the LSP*
- Origination talent nonexistent in LSPs
- Origination velocity for their clients limited by underwriting and closing labor
- Manual workflows increase cost, errors and inconsistency
- Secondary market execution (lack of) impacts ROE
- Funding sources and credit boxes shift
- Economics suffer without the ability to originate
These problems compound as volume scales.
*Many of these problems occur whether in a bank, CU, SBLC, or LSP.
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The GGL markets are broken
SBA and USDA loans are:
- Highly nuanced and partly judgment-driven in credit, despite uniformity in closing and servicing
- Dependent on scarce expertise
- People-intensive and expensive to staff
- Governed by constantly evolving SOPs
- Operationally complex with fragile credit, closing, and secondary market execution timelines
As a result:
- Origination is unpredictable
- Asset quality varies widely
- Tech is expensive and hard to implement, build or acquire
- Most banks cannot justify the cost of establishing their own SBA team
- Numerous customer friction points hurt applicant experience and program reputation
- The long tail (bottom 80% doing 8%) is steadily losing relevance and destroying value
Source: SBA Lender Reports FY22 — FY25
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SBA lending is now one of the most structurally concentrated credit markets in the U.S.
The market for government-guaranteed small business loans exhibits an unusually high concentration among a small number of lenders compared to other major credit sectors. This is driven by the complex and specialized nature of SBA 7(a) loans.
Source: U.S. Small Business Administration (SBA 7(a) Lender Reports, FY22–FY25); National Community Reinvestment Coalition (NCRC); Top 50 Home Purchase Lenders Analysis (2024); CFPB Report (2024); Mordor Intelligence; Conference of State Bank Supervisors; Cohen & Steers Report (2023); and Bankrate Report (2026).
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What No Longer Works in SBA lending?
❌ “Occasional” SBA lending (a few deals per year)
❌ Generalist, conventional credit and servicing teams without SBA specialization
❌ Manual, non-standardized underwriting processes (limited tech)
❌ Single-balance-sheet dependency with no funding optionality
❌ Inconsistent policy interpretation as SOPs evolve, leading to late-stage fallout
❌ No defined secondary market strategy nor execution experience
❌ Treating SBA as incremental relationship volume
As a result, lenders like these are exiting the SBA program and less than 1/3 of applicants get fully approved.
Source: 2025 Report on Employer Firms from the Federal Reserve
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Why Hasn't This Been Solved?
Software Alone Failed
- Nuance breaks pure automation
- Regulators demand precision, not heuristics
- Credit judgment cannot be rules-only
- Technology optimizes steps, but not end-to-end execution, and it constantly needs rebuilding for maximum optimization
- Late-stage failures increase when systems lack contextual judgment
- Workflows remain fragmented across intake, underwriting, closing, and servicing
- No full lifecycle platforms, so point solutions are stitched together with manual processes
LSP Services Alone Failed
- Growth tied to incremental head count rather than scalable capacity
- Key-person risk, in a talent-scarce (and aging) industry
- High cost to train, retain, and scale specialized talent
- Operational quality degrades as volume increases
- Limited ability to redeploy capacity across cycles
- Primary revenues from low margin "back office" services, leaves little to reinvest in new tech and talent
The solution requires both.
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So What's Missing?
A scalable way to consistently manufacture high-quality GGL assets.
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The Core Market Insight
GGL lending now behaves less like banking and more like a regulated fintech platform business.
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The Lendesca Solution
Lendesca Guaranteed is an end-to-end operations platform and marketplace for GGL, removing virtually ALL operational costs to our LSP clients… effectively an embedded origination infrastructure or what we like to call "GGL-Dept-as-a-Service."
With Lendesca, banks generate GGL assets at scale with no additional staffing required and with reduced regulatory exposure.
The result is Category Creation:
a regulated, efficient, and rapid distribution of GGL
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What Makes Lendesca Work at Scale?
Centralized Expertise
Seasoned originators and expert underwriters and analysts review every detail, ensuring thorough and precise loan assessments with underwriting logic that is SOP-versioned, change-controlled, and examiner-defensible.
AI-Native Software
Advanced AI is leveraged for streamlined origination, doc collection, fraud detection, and underwriting analysis, resulting in exponentially faster processing and intelligent decision-making.
Operational Control
Full command over the entire lending lifecycle is maintained from application to post-closing, with robust systems.
originations + next-gen platform + workflow + compliance = expeditious distribution of GGL assets
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Our technology-enabled efficiencies drive scalability
Scalability is enabled by a hybrid human-in-the-loop architecture that uses agentic AI to streamline routine actions, while all exceptions, credit judgment, and final decisions are reviewed and approved by our experienced GGL lending professionals.
Intelligent Data Automation
End-to-end automation of data interpretation extracts key insights and highlights exceptions so underwriters don't waste time on manual input and review.
Dynamic Document Control
Requests, collects, and verifies documents in real-time, eliminating bottlenecks and significantly shortening underwriting cycles.
Instant Approval Generation
Produces customized conditional approval packages instantly and consistently, based on predefined and fully aligned underwriting rules.
This is platform leverage, not labor arbitrage… providing speed to certainty.
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Lendesca Guaranteed Loan Process Overview
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From Linear Origination to Agentic AI Infrastructure
80+% Cycle Compression
8–10x Throughput
Lower Cost per Loan
Compounding Margin Structure
*Total stage timeframes above do not include third party reports external to this process and may vary based on borrower participation and transaction complexity.
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The LSP Foundation Enables Marketplace Optionality
Lendesca’s fintech-enabled Lender Service Provider (LSP) model is a rewiring of the industry. We centralize origination, underwriting, compliance, and execution before a loan ever touches a bank's balance sheet. This control layer enables a marketplace that provides maximum optionality and certainty of funding for borrowers.
LSP Control (The Foundation)
- Direct control of origination and borrower intake
- Underwriting, Closing, and SBA / USDA compliance execution
- Closing coordination and servicing/liquidations
- Secondary market execution and capital optimization
Marketplace Optionality (The Outcome)
- Ability to place each loan with the best-fit sponsor bank
- No reliance on a single credit box or balance sheet
- Diversified funding sources across multiple banks
- Reduced origination concentration risk
We haven't only built loan software… we have built the full, modern GGL infrastructure for lenders.
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The Platform Flywheel
1. Lendesca efficiently originates high-quality GGL loans
2. After fully underwritten, assets enter the marketplace
3. Bank selected, closing occurs, and capital is deployed for the lender of record
4. Loan performance validates underwriting
5. Banks seek deeper integrations as LSP clients
6. Volume and data improve underwriting providing more access to capital
7. Asset quality improves and compounds
Flywheel Repeats
This is operational leverage, not labor arbitrage.
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Why Lendesca Wins
Our proprietary software runs origination, underwriting, closing, Secondary Market Sales, and servicing for these specialized loans… allowing banks to focus on asset management instead
Our underwriting IP is centralized, disciplined, and proven
Rapid approval and closing timelines, measured in hours and days, not weeks and months, improves customer experience
Fragile "franchise value" from key-person risk is eliminated
Multiple monetization points per loan for ineligible GGL applicants keeps borrowers in our ecosystem
Our team's notable expertise, strategic partnerships, in-house tech development, and digital marketing amplifies originations
Lendesca is a turnkey origination engine that banks can deploy without building SBA/USDA muscle internally… essentially "origination as a service" for regulated lenders.
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Why Banks Partner with Lendesca
Expand Your Credit Box — Without Giving Up Control
- Say "yes" to strong borrowers outside conventional boxes.
- Retain sole credit authority; you remain the "driver."
- Lendesca acts as your "engine," structuring loans to your policy.
- Preserve and deepen customer relationships.
Institutional-Grade SBA Execution & Compliance
- Mitigate regulatory scrutiny for low-volume SBA lenders.
- Receive institutional-quality underwriting and closing packages.
- Lendesca becomes your "compliance shield," living the SOP 50 10 8 daily.
Increase Non-Interest & Interest Income
- Generate premium income via SBA secondary market execution.
- Expand fee-based revenue without increasing fixed overhead.
- Gain above-market, variably priced assets.
- Scale government-guaranteed lending efficiently.
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Typical $1MM SBA 7(a) Deal
Deal Structure Assumptions
Loan Amount: $1,000,000
Term: 10 Years
Guaranteed Portion: 75%
Prime Rate: 6.75%
Interest Spread on Unguaranteed: +3.00%
Secondary Market Premium: 10%
Expected Life: 5 Years
Servicing: 1% on Guaranteed Portion
Lender Economics (5-Year average hold)
Unguaranteed Loan Amt.
Total Economics
Total ROI
5-Year IRR
Includes: Gain on sale, Interest income, Servicing income, Principal paydown
High Yield. Capital Efficient. Done for You.
$399,668.59 (Total Economics) ÷ $250,000.00 (UnGtd. Amount) = 159.87% | IRR Calculation: Cash Flows: Year 0 = -$250,000.00 (Initial Investment), Year 1 = $57,981.07, Year 2 = $46,731.07, Year 3 = $46,731.07, Year 4 = $46,731.07, Year 5 (Final) = $201,494.30 → IRR = 14.09%
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Why Now?
Technology Maturity
Modern lending platforms, AI-assisted underwriting, and workflow automation have reached the maturity required to support compliant, scalable government-guaranteed lending without proportional increases in headcount.
Deposit Growth
Deposit growth is outpacing asset deployment, creating pressure for banks to find new avenues for capital utilization.
Program Complexity
GGL programs are becoming increasingly complex, requiring specialized knowledge and constant adaptation.
Talent Scarcity
There is a growing scarcity of specialized talent within banks capable of navigating the intricacies of government-guaranteed lending.
Exposure Without Infrastructure
Banks desire exposure to this high-performing asset class but want to avoid the heavy operational burden and infrastructure costs.
The GGL market has reached peak fragmentation and peak complexity, forcing a platform winner: Lendesca.
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Market Opportunity
FY25 Government-Guaranteed Lending
SBA 7(a) Loans
Guaranteed origination volume supporting small business growth. Estimated total project financing was $49.71B
SBA 504 Projects
Guaranteed origination volume for real estate and equipment financing. Estimated total project financing was ~$19.57B.
USDA B&I and CF
Guaranteed origination volume for rural business and community development. Estimated total project financing was ~$3.12B.
Small business lending (GGL+) is currently a $100B+ market run on disconnected point solutions.
Source: SBA and USDA Lender Reports for FY25 based on guaranteed origination volume; ~$72.4B of total project financing in FY25.
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Proof the Model Works:
The team behind Lendesca has already built and operated a profitable, originating LSP, demonstrating deep expertise and a proven track record in the government-guaranteed lending space… and this was done prior to our new tech.
~$400MM in GGL originations
2025 volume from the Lendesca Team, showing significant market penetration and operational capacity.
~2.6% default rate
Our past SBA portfolio sits significantly below the ~7.9% SBA industry average, highlighting superior underwriting and risk management.
Disciplined, SOP-driven underwriting
Proven across various economic cycles, ensuring consistent asset quality and reliability.
Roughly 25 experienced GGL professionals, many of whom have worked together for years, will be part of the initial hiring phase.
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The Ask: Strategic & Financial Partners
Lendesca is seeking strategic partnerships to catalyze growth and ensure robust market liquidity for government-guaranteed loans.
Strategic Bank Investors
We are identifying two strategic bank investors who will serve as anchor purchasers of our government-guaranteed loan production. These partners will also act as primary buyers during our marketplace ramp-up and participate as competitive bidders once the marketplace is fully live.
Equity Alignment
These partners (bank investors and/or a fintech-focused VC) will acquire a small equity stake in Lendesca. This equity alignment is crucial for harmonizing incentives, significantly reducing execution risk, and ensuring durable, long-term takeout capacity for our loan originations.
Broader Participation
In parallel, Lendesca is actively onboarding additional non-equity purchasers to participate as LSP clients and marketplace bidders, further diversifying our funding base.
We have uniquely designed this to foster deep alignment, mitigate risk for all parties, and build a more resilient ecosystem for government-guaranteed lending, providing more access to capital for America's small businesses.
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Appendix and Other Resources
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Who Controls What? — Sponsor Bank Perspective
Banks retain full credit authority and balance sheet control while outsourcing execution risk.
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Build In-House vs. Partnering with Lendesca
Same asset class, radically different economics and risk profile.
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Infrastructure Economics for Lendesca
Origination Income
LSP fees for: originations and packaging, plus underwriting, closing, and secondary market execution.
Servicing Revenue
Recurring income from both sold and retained portions of loans.
LSP Services
Fees from underwriting, closing, secondary-market, and servicing/liquidation for lender partners on their originated loans.
Referral Income
Monetization of ineligible applications through automated waterfall to non-GGL lender network.
Table of contents
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Financial Projections (Years 1–3)
Lendesca's revenue model demonstrates strong growth and profitability, leveraging our unique market position and operational efficiency.
*Does not include monetized turndowns of ineligible applicants for GGL.
**Margin is low in Yr. 1 due to startup costs incurred, ramping to originations, and the mix of multi-funded loans that cannot earn secondary market premiums until several months post-closing (sometimes up to 12 months).
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Lendesca Data Room & Resources
Explore these additional resources for detailed insights into our team, market analysis, and financial models. Click on the links below to access the relevant documents.
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