Applying for an SBLOC
Benefits of the SBLOC
Collateral Eligibility Guidelines
Advance Rates
Interest Rate Information
SBLOCs for Entities
SBLOCs for Trusts
Credit Line Access
Payments and Payoffs
Additional Disclosures
Applying for a Securities-Backed Line of Credit (SBLOC)
The Bancorp is excited to introduce TALEA®, our new loan automation platform that improves the origination and delivery of the Securities-Backed Line of Credit (SBLOC).
TALEA (ta•LAY•a) is a portal to the future of wealth lending services, and The Bancorp is pleased to bring this premier solution to our valued partners and their advisor networks.
To access TALEA, use the single sign-on-enabled link available on your Advisor Desktop home page in the ‘Quick Links’ dropdown. TALEA is for new applications only. For modifications to an existing SBLOC, complete a Change in Terms form.
Highlights of the Talea process flow:
- The financial professional/admin initiates the loan via TALEA, and the financial professional/admin/client completes questionnaire process.
- Once submitted by the financial professional/admin, TALEA routes the loan application to the client for approval and signature.
- The Bancorp receives, via DocuSign, the loan application/document package from the client with the client signatures.
- The Bancorp will complete the underwriting process and book the loan.
- Your client will then receive two Welcome letters/emails with a password and user ID (separated for security reasons) and detailed instructions for logging into, www.seicashaccess.com.
- After a loan is established, statements are produced monthly only if there is an outstanding balance on the line of credit account. Click here to see a sample.
In Case You Missed It
The TALEA User Experience webinar, presented by The Bancorp, is now available for replay here. Learn how Talea helps you work smarter and faster when creating new loan packages for your clients.
Online Account Access: Your client's user ID for online account access is provided in the Welcome Kit. If this is your client's first account being serviced by The Bancorp Bank, N.A., the password will be sent by email, provided an email address was included on the SBLOC application; otherwise, the password will arrive separately by U.S. mail.
If your client currently has another account being serviced by The Bancorp Bank, N.A. they will log on to our website at seicashaccess.com with the same user ID and password used for the other account. The other account may be with SEI Cash Access or another organization which offers banking services through The Bancorp Bank, N.A. The client will not receive new login credentials for this account nor will they be prompted to change the password.
Checks: If checks were chosen at the time of application, they will arrive in the mail within 7-14 business days.
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Benefits of the SBLOC
A Securities-Backed Line of Credit (SBLOC) offers clients flexibility and convenient access to their funds. An SBLOC is a revolving line of credit secured by the assets in the SEI portfolio. The SBLOC lets your clients access the value of their investment portfolio without disrupting your carefully constructed investment strategy.
An SBLOC is ideal for clients who need access to funds for real estate purchases, tuition, taxes or other lliquidity needs - anything except for the purchase of additional securities or to pay off a margin loan that was used to purchase securities. Since the portfolio is held as collateral, your clients may avoid potential tax consequences associated with liquidating assets while you continue to maintain management of the portfolio. Clients are advised to consult with a financial/tax professional regarding potential tax implications involving their investment portfolio.
Applying for an SBLOC involves minimal paperwork and there are no application or set up fees1. No interest will be charged until the line is in use, and there are no annual maintenance fees for simply having the line in place. For these reasons, many financial professionals opt to proactively put an SBLOC in place for their clients as a safety net for unforeseen expenses.
SBLOC clients will receive free standard checks, if chosen at the time of application, to access their line. Checks will arrive 7-14 business days from account opening. Domestic wire transfers from the SBLOC are at no charge. Wire request forms are available online anytime so that clients can quickly and easily access their funds as needed.
An SBLOC can also be linked to the SEI Cash Access checking account for overdraft protection if desired. An SBLOC linked to a CAA for overdraft protection will be the first source we reach out to in the event of an overdraft. If the remaining balance of the SBLOC can support the overdraft amount, we will not pull any funds from the cash in the SEI portfolio. Please note that if overdraft protection is in place and the SBLOC does not support the overdrawn amount, the item will follow the normal overdraft process.
1The Bancorp Bank, N.A. does not charge an application fee. State, local, and/or third-party fees may apply in some states.
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Collateral Eligibility Guidelines
Advance Rates
SBLOC Interest Rate Information
SBLOCs for Entities
Entity SBLOCs are subject to additional review and underwriting. SBLOC requests for an entity are underwritten and processed by a commercial lender and will require additional disclosures and Loan Committee approval. Owners of the entity will be required to personally guarantee the debt. Interest rates may vary so we encourage you to contact us to discuss your client’s specific circumstance.
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SBLOC for Trusts
There are additional components of the SBLOC account-opening process when trusts are involved that financial professionals need to know. Following the guidelines outlined in the Quick Card for Trusts can help expedite account opening and activation.
Trustee Certification/Affidavit for SBLOCs
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Credit Line Access
Payments and Payoffs
Additional Disclosures
The Bank may reduce the credit limit if, in its sole discretion, it determines that the value of the collateral is no longer sufficient to support the line of credit. For example, if market fluctuations produce a significant loss of value in the collateral account or if the reallocation of assets from an asset class with a higher advance rate to one with a lower advance rate results in insufficient collateral value, the credit limit will be reduced accordingly.
The securities used for collateral are restricted. Approval is required for certain transactions.
The terms, loan structure, and pricing of the SBLOC Program are subject to change upon The Bank’s discretion.
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This SEI Cash Access Account service is made available by SEI Investment Company to its custodial clients. Banking services are provided by The Bancorp Bank, N.A., Member FDIC, which is not affiliated with SEI Investment Company or any of its other subsidiaries. © 2024 SEI