Glossary of Terms

Second Look Program

Definition

A Second Look Program is a structured re-evaluation process for previously declined loan applicants, using AI-driven insights and alternative credit metrics to identify potential funding opportunities that may have been missed in the initial review.

Why is it important to SBA Lending

Many small business loan applicants are declined due to rigid underwriting criteria rather than actual creditworthiness. Common reasons for rejection include:
-Minor financial weaknesses that could be improved with guidance.
-Lack of complete documentation, leading to automatic denials.
-Traditional underwriting models that overlook alternative credit indicators.

A Second Look Program allows lenders to reassess applicants using alternative data sources, provide actionable feedback on improving loan eligibility and increase loan approvals while maintaining risk controls.

What role does Parlay Play

Parlay’s Loan Intelligence System (LIS) enhances Second Look Programs by:
-Identifying marginal applicants who may qualify under alternative criteria.
-Providing AI-driven insights on financial improvement opportunities.
-Automating re-engagement campaigns to encourage applicants to reapply.

By leveraging Second Look Programs, Parlay helps lenders convert more applicants into approved borrowers, expanding access to capital for underserved businesses.