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About SBFE Key Facts FAQs Contact Info FAQs What is the Small Business Financial Exchange (SBFE)? The SBFE is a national source of small business credit information. It is a member-owned, not-for-profit trade association that reports and maintains both positive and negative financial information regarding small businesses. How does the information contained in the SBFE database differ from current data sources? Current data sources typically do not contain loan and performance information from financial institutions. According to lenders, the most important information to them in making decisions about a small business's credit is to know what financial institution credit has been extended to that business and how successfully the business has managed that credit. The SBFE provides this information. What is Equifax's role in the SBFE? Equifax was selected by the SBFE Board of Directors to build and maintain the SBFE database based on its expertise in operating Exchange databases since 1984. As the third-party provider of the Exchange, Equifax works closely with the SBFE Executive Director and Board of Directors. Who can join the SBFE? To qualify for membership in the Exchange, a financial institution must either originate small business financial obligations, own the paper related to small business financial obligations or service the receivables for small business financial obligations. Who manages the daily operations of the SBFE? The Executive Director of the Association manages the Exchange. Equifax provides reports and statistics to the Executive Director for use in assuring member compliance. The Board of Directors has adopted Bylaws and a set of Operating Guidelines that set forth the requirements for Exchange operations and Member participation. What defines a "small business" for SBFE purposes? In general, a "small business" is defined as an entity with revenues of less than $10 million and loan exposure with the financial institution of less than $2.5 million. Individual Exchange members may define "small business" differently. What data is contained in the SBFE? The SBFE provides a picture of a small business's financial exposure across multiple financial institutions and portfolios. Key data elements include small business name and address, account type and status, date account opened, credit limit, high credit, balance and payment history. Who owns the SBFE data? Each member owns the data it contributes to the Exchange. For what purposes can the SBFE data be used? Members may use the data for credit risk assessment, fraud prevention, portfolio monitoring and locate purposes. Use of the data for marketing purposes is not permitted. Can scoring models be built using the SBFE data? Yes. Model-building is governed by the SBFE Operating Guidelines. The Board of Directors has agreed that each member may opt-in or opt-out for the inclusion of its data in the development of generic industry models. Only opt-in members may receive the generic industry scores. Each member may use its own data for internal model-building. How do members access the SBFE data? Access is available to Members through ePORT (Equifax's Internet delivery channel), System-to-System and Equifax Decision Power. How do SBFE members report data to the SBFE? Data can be submitted on cartridge, on magnetic tape or through electronic data transmission. Equifax strongly recommends the electronic reporting of Member data. What is the pricing for the SBFE? Services provided to SBFE Members are offered on either transaction-based or volume tier pricing. An annual membership fee is assessed by the SBFE to cover operational costs. Other costs, such as those associated with vendor programming or a Member's internal resources, may be applicable. Can financial institutions join the SBFE or have access to SBFE data without providing their own data? No. Members must provide data to qualify for SBFE membership. Furthermore, the SBFE Operating Guidelines include requirements stipulating that members may only have access to the types of data they contribute. Are third-party service providers (inquiry and/or data reporting vendors) involved in the SBFE? Equifax works with vendors to assist in programming for the Members' reporting of data and access to the SBFE database. Prospective members should discuss their utilization of third-party vendors with Equifax as well as contact the vendors directly to expedite necessary vendor actions and preparation for SBFE data and functionality. Are technical resources available at Equifax to assist Members with SBFE data reporting and inquiry capabilities? Yes. Each Member is assigned a Business Solutions Consultant who works closely with the Member's technical staff. Does the SBFE comply with FCRA requirements for disclosure and dispute? The FCRA does not pertain to commercial lending; however, certain dispute and disclosure processes for the SBFE have been patterned after FCRA guidelines.