2027 SBA Lender Compliance: LSP Requirements Under New SOP 50 10 8.1 — Tues, Dec 1

 What SBA Wants: LSP Agreements, Compensation, Lender Control and Oversight

Coleman Professional Webinar Training
Date: Tuesday, December 1, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording

With SOP 50 10 8.1 effective October 1, 2026, now is the time to review your existing Lender Service Provider relationships before entering 2027.

SBA expects lenders to maintain control of their SBA lending operations, regardless of the functions assigned to an LSP.

For lenders using LSPs, an important consideration is whether their actual operating practices match their written agreements. SBA requirements address the services an LSP may perform, the responsibilities that must remain with the lender, compensation arrangements, borrower funds, and the lender’s ability to operate independently of its service provider.

Join David Parrish on December 1 for a review of what SBA requires from lenders and their LSPs. 

Drawing on his experience as former Chief of SBA’s Secondary Market Division, David will discuss how lenders can assess their agreements, operational controls and oversight documentation. He will also address the distinction between SBA requirements and the additional third-party risk management obligations applicable to federally regulated banks.

What David Parrish Will Cover

1. SBA’s LSP requirements under the new SOP 50 10 8.1. Defining covered activities and distinguishing LSPs from other third-party loan agents.
2. Reviewing existing LSP agreements. Required contractual provisions, SBA review, amendments and termination notifications.
3. Demonstrating lender control. Responsibilities for underwriting, credit decisions, closing, disbursement, servicing, liquidation and SBA system access.
4. LSP compensation restrictions. Permissible fee arrangements, borrower-paid fee restrictions and the prohibition on sharing secondary market premiums.
5. LSP compensation versus SBA Form 159. When services performed under an SBA-reviewed LSP agreement are exempt from Form 159 reporting and when other agent services require disclosure.
6. Borrower funds and payment processing. Contractual controls, account responsibilities and restrictions on commingling funds.
7. Conflicts of interest and affiliated relationships. Identifying arrangements requiring additional review and documentation.
8. Documenting ongoing LSP oversight. Due diligence, performance monitoring, internal controls and management reporting.
9. Preparing for SBA oversight reviews. Evaluating whether agreements, records and actual operating practices demonstrate compliance with SBA requirements.
10.  LSP termination and operational continuity. Contract termination, transfer of responsibilities and the lender’s continuing ability to perform SBA lending functions independently.

Who Should Attend

SBA program managers, chief credit officers, compliance officers, risk managers, vendor management personnel and senior executives responsible for SBA lending operations and LSP relationships.

About David Parrish

David Parrish is President of Deerwood Advisors and the former Chief of SBA’s Secondary Market Division, Office of Capital Access. He now advises financial institutions on SBA lending operations, strategy and compliance.

How the Webinar Works

We use Microsoft Teams as the webinar platform.

Recording
All Coleman webinars are recorded, and a link is sent to all attendees.

Single Site License
The single-site license grants your institution one viewing of the webinar. It is permissible to use a single-site license on one device in a conference room for multiple attendees to view. The webinar can be viewed on any device.

Multiple Site License
A multiple-site license is an unlimited access pass for anyone at your institution. You will be given a link that anyone in your email domain can use.

Webinar Links and Handouts
The webinar link will be sent out prior to the session, and included again when we send the presentation and handouts.

Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.

Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre- and post-webinar questions.

The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.

3 Easy Ways to Order
1) ONLINE — Register and pay online via QuickBooks
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.