WOODLAND, Calif. -- The Small Business Administration has granted Yolo Federal Credit Union preferred lender status.

The designation allows the $171 million credit union to process the agency's loans at a faster rate. SBA said it delegates the final credit decision and most servicing and liquidation authority and responsibility to preferred lenders. The agency will continue to check loan eligibility criteria under this program.

Preferred lenders are nominated based on their historical record with the SBA, according to the agency. They must have demonstrated a proficiency in processing and servicing SBA-guaranteed loans. In the event of payment default by the borrower and the need for enforced collections, the preferred lender agrees to liquidate all business assets before asking SBA to honor its guaranty.