Worcester-based Bay State Savings Bank has been designated an "SBA Preferred Lender," according to Robert H. Nelson, Massachusetts district director of the U.S. Small Business Administration (SBA).

Under the Preferred Lenders Program (PLP), high-volume SBA lenders like Bay State Savings are delegated loan approval, closing and most servicing and liquidation authority, enabling them to make loan decisions more rapidly. The SBA generally assigns a loan number instantaneously for approved PLP loans submitted by participating lenders.

To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures, according to a statement.

"We award Preferred Lender status to lenders who have demonstrated their commitment to small business and have the ability to effectively serve this market," Nelson said in a statement. "With PLP status, Bay State Savings Bank will be able to offer small business customers the full range of SBA loan products as well as streamline and speed up the loan approval process."

The SBA, under its 7(a) Loan Guaranty Program, can guarantee loans up to $5 million for most business purposes, including the purchase of commercial real estate, equipment and inventory, as well as for short-term working capital. The interest rate normally will not exceed 2.75 over the prime lending rate. Maturities are up to 10 years for working capital and up to 25 years for fixed assets.

"We are very pleased to achieve the Preferred Lender Program designation," Bay State Savings President Peter Alden said in a statement. "This will enable us to continue to expand our commercial lending reach to small and medium sized businesses. The designation allows us greater response time and efficiency."