nCino Partners with Parlay to Bring AI Automation to SBA Lending

Cloud banking software provider nCino (NASDAQ: NCNO) and AI lending startup Parlay have launched an integration connecting Parlay's Loan Intelligence System to nCino's Commercial and Small Business Solutions. The combined offering targets the roughly 1,400 lenders participating in the US Small Business Administration's loan programmes.

The integration went live earlier this year and has already handled more than $500 million in SBA loan inquiries during 2026. First Internet Bank is among the early adopters named by the companies.

The workflow uses a one-click handoff: Parlay's AI agents manage borrower intake, programme eligibility checks, and preliminary deal structuring before passing files to human loan officers for review. Early customers have reported cutting manual work by as much as 80% compared to traditional paper-driven SBA processes.

nCino will act as reseller and support provider for Parlay's platform, positioning it as an add-on module for existing customers focused on SBA lending. Parlay retains direct sales rights in the broader SBA market outside the nCino channel.

Neither firm disclosed revenue-share arrangements or the size of any initial financial commitment tied to the deal.

No rip and replace required, so more small businesses across the country gain faster access to capital. — Alex McLeod, co-founder and CEO, Parlay

This pairing adds agentic capabilities that help lenders move eligible borrowers to approval faster. — Chris Gufford, chief product officer, nCino

Small businesses represent a substantial portion of US economic activity but often fall outside conventional bank credit models. Originating an SBA loan typically demands specialised staff and heavy documentation, creating cost barriers that have kept many community banks and credit unions from building or expanding their SBA programmes.

The nCino–Parlay tie-up is part of a broader wave of AI workflow tools aimed at this segment. Banks are moving away from disconnected point solutions toward unified platforms that handle origination, underwriting, and portfolio oversight in a single system.

nCino serves over 2,700 financial institutions worldwide and has established itself as an orchestration layer for regulated banking operations, giving Parlay access to a distribution network it would struggle to reach independently.

SBA loans carry federal guarantees managed by the US Small Business Administration, with lenders responsible for confirming programme eligibility. Any AI tool that assists in that determination must maintain audit trails and human review checkpoints that satisfy both SBA lender standards and regulatory expectations from the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation.

Federal bank regulators have emphasised that automated credit decisions must remain explainable and contestable, a requirement that applies equally to agentic AI systems handling eligibility screening.

The 80% manual-work reduction is a significant operational claim, though it comes from self-reported customer data rather than independent verification. The $500 million figure represents inquiries in the pipeline, not originated or funded loans — a distinction that matters when measuring actual throughput.

Key indicators ahead include:

• Originated and funded loan volumes as adoption scales
• Pull-through rates from initial inquiry to closed loan
• Uptake speed among nCino's existing SBA customer base
• Any regulatory guidance or commentary on agentic AI handling federal programme eligibility