CMBL Program Implementation

Octant Business Services has positioned itself to offer credit union clients of any size a relatively simple, yet efficient platform to provide CMBL services at a very reasonable cost. Our CMBL programs are individually designed to meet each client’s unique CMBL program goals and objectives. We provide a wide array of “a la carte” services including loan approval underwriting and recommendations, CMBL portfolio administration and servicing as well as loan documentation preparation and review. Relationship management, business development and loan approval are handled by the client credit union. Some of the benefits of establishing a CMBL program with Octant include:

  • Affordable and scalable shared services model that allows entry into CMBL with low startup costs and faster return on investment while preserving capital
  • As competition for retail products and services continues to increase, CMBL provides a new income stream while building  new member relationships, preserving existing member relationships  and increasing cross sell opportunities
  • Octant’s staff possesses extensive experience in all aspects of commercial lending, credit risk management, credit administration, loan operations, problem loan management, portfolio administration and management, business development, sales management, regulatory compliance and loan review 
  • Availability of loan participation network to manage concentration risk and in-house lending limits while maintaining highly valued member relationships

An extensive, readily available and easily accessible loan participation network is provided by Octant to its credit union clients via access to our current client base. Octant solicits interest from potential participants and the client credit union ultimately selects its participant partners for the loan. This allows larger loan relationships to be considered and provides a means of distributing risk or managing industry concentrations within a CMBL portfolio. Octant’s loan accounting system provides excellent support to participant accounting and disbursement requirements.

MBL Underwriting

Octant will perform a comprehensive quantitative and qualitative analysis of each loan request applying time-tested credit underwriting techniques. Octant will deliver a thorough and understandable recommendation that includes the following:

  • Appropriate credit facility and loan structure that considers both the borrower’s ability to repay and adequate collateral protection for the credit union;
  • Source and use of funds;
  • Global cash flow analysis;
  • Collateral analysis that may include an appraisal and/or environmental risk evaluation;
  • Borrower(s), co-borrower(s) and guarantor(s) analysis that includes a review of credit histories, income/expense and net worth

Upon approval of the loan application by the credit union, Octant will provide a formal commitment letter as well as request, review and comment on any/all environmental or appraisal due diligence reports. When all pre-closing conditions are satisfied, Octant will facilitate the scheduling and closing/funding of all loans.

MBL Servicing and Portfolio Administration

Octant Business Services utilizes a robust loan accounting system which allows for compliant servicing, client reporting, government reporting, and portfolio administration. Our teams extensive servicing knowledge helps our clients to adhere to best practices in all levels of loan servicing. A few servicing activities that Octant Business Services provides are:

  • Monthly billing and ACH payment collection;
  • Generation of regulatory compliant monthly reports;
  • Property insurance verification and real estate tax escrow tracking;
  • Collection of required financial documentation, performance of annual reviews and risk rating changes;
  • Credit and legal file maintenance
  • Customizable reports

Octant dedicates its resources to ensure that your loan portfolio is managed professionally and efficiently. Communication with clients is a priority and ensures that both Octant and the credit union are aware of all loan payments, delinquency status, member correspondence and any other servicing details as they occur.

Non Serviced Programs and Credit Administration Servicing

Octant also provides its products and services a la carte for client credit unions that do not require an end to end CMBL loan underwriting, administration and servicing solution. Typically this involves mostly underwriting services (loan approval document, appraisal and environmental report ordering and review, annual review document), credit administration servicing (financial compliance reporting, real estate tax tracking, policy compliance reporting) and documentation preparation and/or review.

Loan Programs

Octant understands that not all credit unions want to approach member business lending in the same way. For this reason, Octant offers several service levels to its clients so that an appropriate program can be designed and implemented. All service levels include:


  • Program design and accompanying roll-out plan;
  • Loan request underwriting and servicing;
  • Regulatory compliant commercial lending policy;
  • Standard loan accounting reports;
  • Initial program training

Services offered in more comprehensive levels include:

  • Preparation of annual reviews;
  • Loan portfolio reviews;
  • Documentation;
  • Access to secure website;
  • Additional on-site staff training;
  • Direct mail marketing campaigns;
  • MBL marketing plan and component template

The availability of these services combined with Octant’s commitment to provide an environment that is conducive to the achievement of your member business lending goals allow for a client-focused approach to business lending.


Octant assists its clients by recommending the appropriate credit facility for each Member Business Loan. Whether it is a term loan for the purchase of equipment or the refinance of commercial real estate, Octant will identify, underwrite and recommend a loan structure that best protects the credit union and fullfills the borrowing requirements of its members.

Commercial Real Estate

  • Investment Property (Residential and Commercial)
  • Owner Occupied
  • Mixed-Use

Construction Loans

  • New construction or major renovation of commercial or residential real estate.

Term Loans

  • Purchase of equipment, vehicles, business acquisition, debt consolidation

Secured Lines of Credit

  • Working capital to businesses that experience fluctuations in cash flow due to the seasonality of their business or to bridge the financial gap between product sales and payment.

Government Loan Programs

SBA The 504 Program – provides long-term fixed rate financing for the acquisition of real estate or machinery and equipment. Lender loans 50% of project cost while a Certified Development Company (CDC) lends up to 40% with the borrower contributing as little as 10% of project cost.

7(a) Program – Loan proceeds used for working capital, machinery and equipment, furniture and fixtures, land and building and leasehold improvements. Provides lender with up to an 85% guaranty.

Express Program – A low document government program that provides a 50% guaranty for loan amounts up to $350,000.

USDA Business & Industry Program – Provides up to an 80% guaranty to lenders on rural business loans. Loan amounts usually begin at $750,000 and range to $10,000,000.

Get In Touch

Learn more about how our professionally managed business lending program with a full array of products and services can help your business grow.