Glossary of Terms

Eligibility Assessment

Definition

Eligibility Assessment is the process of evaluating a loan applicant’s financial profile, business history, and creditworthiness to determine whether they qualify for a specific loan product. It ensures that only viable applicants proceed in the lending process, improving efficiency and reducing underwriting costs.

SBA loans have strict eligibility criteria, including:
-Business size and industry qualifications.
-Credit score and financial performance thresholds.
-Document verification and compliance checks.

Why is it important to SBA Lending

Manually assessing eligibility is time-consuming and error-prone, leading to:
-Delays in loan approvals, reducing borrower satisfaction.
-High rejection rates after underwriting, wasting lender resources.
-Missed opportunities, as some eligible businesses may be incorrectly denied.

What role does Parlay Play

Parlay’s AI-powered Eligibility Assessment automates and enhances qualification screening by:
-Instantly verifying borrower eligibility against SBA and lender-specific criteria.
-Pre-screening applications to reduce wasted underwriting efforts.
-Providing clear, data-backed reasons for approval or rejection.

By automating Eligibility Assessment, Parlay ensures that more small businesses are accurately matched with the right loan opportunities, increasing approvals while reducing risk.