The Marketplace for Government-Guaranteed Lending
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.
© 2026 Lendesca
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The Big Insight
Government-guaranteed lending has a supply problem disguised as a demand problem.
Banks want government-guaranteed assets.
Capital wants the guarantee.
Secondary markets are liquid.
What's missing is a scalable way to consistently manufacture high-quality assets.
© 2026 Lendesca
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Why This Market Is Structurally Broken
SBA and USDA loans are:
- Highly nuanced and judgment-driven
- Dependent on scarce expertise
- People-intensive and expensive to staff
- Governed by constantly evolving SOPs
As a result:
- Origination is unpredictable
- Asset quality varies widely
- Tech is expensive and hard to adopt, build or acquire
- Most banks cannot justify the fixed cost
Proof: The Top 5% of SBA lenders originate 70% of SBA 7(a) volume, while the Top 20% originate over 90% —concentration is increasing. (Lendesca's Team was in the top 2.5%)
© 2026 Lendesca
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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
Services Alone Failed
- Linear headcount growth
- Key-person risk
- Margin compression
The missing solution requires both.
© 2026 Lendesca
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SBA lending is now structurally more concentrated than ANY other U.S. credit markets.
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)
© 2026 Lendesca
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What Still Works for Sub-$10B Banks?
In today's highly concentrated SBA lending market, viable strategies emphasize partnered and platform-enabled approaches:
Fintech sponsorship or correspondent SBA models
White-label or centralized origination platforms
Shared compliance, underwriting, and secondary market execution
Predictable SBA exposure without fixed internal infrastructure
This is now the dominant SBA strategy for sub-$10B banks.
SBA lending rewards scale, technology, and execution — not casual participation.
© 2026 Lendesca
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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
❌ No defined secondary market strategy
❌ Treating SBA as incremental relationship volume
As a result, lenders like these are exiting the SBA program.
© 2026 Lendesca
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So What's Missing?
A scalable way to consistently manufacture high-quality Government-Guaranteed assets.
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The Lendesca Solution
Lendesca is an asset-side marketplace and operations platform for government-guaranteed lending.
Centralized Expertise
Seasoned originators and expert underwriters and analysts review every detail, ensuring thorough and precise loan assessments.
AI-Native Software
Leveraging advanced AI for streamlined origination, faster processing, and intelligent decision-making.
Operational Control
Maintain full command over the entire lending lifecycle, from application to post-closing, with robust systems.
The output: Predictable, compliant, credit policy-aligned SBA and USDA assets.
© 2026 Lendesca
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Scalability: Technology-Driven Efficiency
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, extracting key insights and highlighting exceptions so underwriters don't waste time on manual 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 underwriting rules.
© 2026 Lendesca
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Ultimately, Marketplace First… LSP Second
Why a Marketplace
Most Banks don't want to build SBA divisions. They want exposure to the asset class.
The marketplace allows banks to:
- Deploy capital without operational burden
- Access consistently underwritten GGL paper
- Build trust through asset performance
Why LSP Follows
Once trust is established:
- Banks request origination on their behalf
- LSP relationships deepen
- Marketplace remains the liquidity and pricing engine
LSP = Lender Service Provider, SBA's vernacular for an entity such as ours
© 2026 Lendesca
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The Platform Flywheel
1. Lendesca originates high-quality GGL loans
2. Assets enter the marketplace
3. Banks deploy capital
4. Performance validates underwriting
5. Banks seek deeper integration (LSP)
6. Volume and data improve underwriting
7. Asset quality improves and compounds
Flywheel Repeats
© 2026 Lendesca
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Why Lendesca Wins
We built the software and run origination, underwriting, closing, servicing & Secondary Market Sales
Underwriting IP is centralized
Credit discipline compounds with scale
Key-person risk is eliminated
Multiple monetization points per loan
This is operational leverage, not labor arbitrage.
© 2026 Lendesca
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Proof the Model Works
The team behind Lendesca has already built and operated a profitable LSP, demonstrating deep expertise and a proven track record in the government-guaranteed lending space.
~$400MM in GGL originations
2025 volume from Lendesca Team, showing significant market penetration and operational capacity.
~2.6% default rate
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.
© 2026 Lendesca
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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.
*Several members of the expected team just originated $400MM in 2025.
**Does not include monetized turndowns.
***Margin is low in Yr. 1 due to startup costs incurred and the mix of multi-funded loans that cannot earn gain on sale until Yr. 2.
© 2026 Lendesca
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Revenue Streams
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.
© 2026 Lendesca
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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
SBA and USDA 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.
© 2026 Lendesca
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Market Opportunity
$56.5B+
Annual Government-Guaranteed Lending
$37B
SBA 7(a) Loans
Annual origination volume, supporting small business growth.
$17B
SBA 504 Projects
Total project size for real estate and equipment financing.
$2.5B+
USDA B&I and CF
Annual volume for rural business and community development.
Source: SBA and USDA Lender Reports for FY25
© 2026 Lendesca
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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 backstop 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-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 investor base.
This approach is designed to foster deep alignment, mitigate risk for all parties, and build a resilient ecosystem for government-guaranteed lending.
© 2026 Lendesca
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