Strengthening SBA Compliance and Preventing Fraud at Scale

Client Overview

A U.S.-based multi-strategy real estate finance firm specializing in the origination, acquisition, financing, and servicing of small to mid-sized SBA loans. As the firm scaled its lending operations, leadership prioritized stronger regulatory compliance, fraud prevention, and operational discipline to support sustainable growth.

Problem Statement

Rapid growth in SBA loan volumes exposed critical operational and risk challenges:

• Elevated regulatory non-compliance risk due to inconsistent due diligence practices
• Increased SBA loan rejection rates driven by documentation inaccuracies
• Higher exposure to duplicate and falsified loan applications
• Process inefficiencies leading to delays, operational strain, and financial risk

These challenges created pressure on both compliance confidence and loan processing timelines.

Solution Provided

Decimal Point Analytics partnered with the client to reinforce compliance rigor while improving operational efficiency:

• Conducted comprehensive due diligence reviews to strengthen regulatory adherence
• Implemented proactive fraud detection mechanisms to identify and eliminate duplicate applications
• Designed and deployed a robust, adaptive SBA compliance checklist aligned with evolving SBA guidelines
• Streamlined loan review workflows to improve documentation accuracy and reduce operational bottlenecks

The solution focused on precision, governance, and scalability without introducing unnecessary complexity.

Outcome

The engagement delivered measurable risk and efficiency improvements:

• Reduced SBA loan rejection rates through improved documentation accuracy

• Strengthened compliance confidence by minimizing regulatory exposure

• Prevented significant financial losses by eliminating fraudulent activity

• Improved operational efficiency, enabling faster loan processing and approvals

• $5 Million in Fraud Prevented through early identification and control automation

• 40% Boost in Operational Efficiency via automated workflows and reduced rework

Key Takeaway

For SBA lenders, compliance excellence and fraud prevention are not parallel initiatives they are tightly interconnected. By embedding governance, diligence, and adaptive controls into core operations, lenders can scale with confidence while protecting both capital and reputation.

Looking to strengthen SBA compliance, reduce fraud exposure, and improve operational efficiency?
Connect with Decimal Point Analytics to explore a compliance-first operating model built for scale.