November 16, 2016
C-Suite Wednesday — Use SBA to Create Jobs!
By Bob Coleman
Editor, C-Suite Wednesday
Thanks to the nearly 100 readers who participated in yesterday’s informal survey about the Trump Administration’s SBA Nominee. Given our readership, it is predictable, 70% suggest some experience as a SBA lender would be ideal. And several note multiple skill sets with varied experience is a plus.
The top priority for the new Administrator?
Answers are more diverse, but the most responses center on streamlining and accessibility of SBA’s lending program for all stakeholders. And several insightful comments say SBA is the ideal agency to implement the campaign promise of job creation.
My personal favorite is this line, “If the Trump administration is serious about creating and bringing back jobs and reviving the rust belt, then the administrator should be at the forefront and should spend actual face-to-face time with small business owners throughout the country so that there is a clear understanding on what the SBA needs to do to grow and create jobs.”
Following are a few of the more detailed responses.
Anything Specific you would like to see in the Nominee’s Background?
“The answer to the new SBA Administrator is tough, because the ideal candidate needs experience in three areas-lending, to relate to lender needs and regulatory compliance; government, to handle the quagmires they will encounter in implementing any changes, and as a small business owner, to truly understand the borrower’s needs and how the SBA can best help them. So, if the Administrator is coming from one sector, it would be helpful to have some type of related experience in the other areas (on boards, etc.)”
“Look at the agency in two parts. The Business-Lending Insuring part vs Mission parts. Ability to separate the business aspects of the Agency (7a and 504 Program) that can pay for themselves vs the mission cost elements. Think outside the box like considering Cap Access like the Insurance component of HUD where there is a separately appointed FHA Commissioner as well as the Secretary. The Commissioner has a fiduciary duty, whereas the Secretary/Administrator has both fiduciary and policy mission concerns. SBA can or substantially can pay for itself if properly structure and organized. SBA needs to be somewhat depoliticized and looked at in its components or it could go the way of the Import Export Bank tussle.”
“It would be wise to have a nominee that comes from the banking industry and had prior small business lending experience in their background and resume. We often have administrators that had no real life small business lending experience. We don’t need any more figureheads…there is enough of them in government already. We need a real administrator with real life experience and that knows what goes on in the trenches.”
“Ability to understand challenges faced by community lenders and the high cost of servicing SBA accounts. The process especially on the back end (servicing /liquidation) is excessively cumbersome and paper ridden (i.e. the delays inherent in dealing with small accounting issues and insignificant expense disputes are keeping cases open, voluminous wrap up reports which duplicate other reports) I can cite a 2 year wait for chargeoff on an undisputed wrap up due to SBA confusion over reporting of a small reimbursement to the Government.”
What should be the #1 priority of the new SBA Administrator?
“The #1 priority of the administrator should be to help grow the program and create greater awareness of SBA. The SBA administrator should focus on visiting actual small businesses so that he/she can hear first hand about the challenges facing small business owners. If the Trump administration is serious about creating and bringing back jobs and reviving the rust belt, then the administrator should be at the forefront and should spend actual face-to-face time with small business owners throughout the country so that there is a clear understanding on what the SBA needs to do to grow and create jobs.”
“Make sure Congress understands how well the programs are working including effective lender oversight and sound portfolio management (which might help mitigate the need for multiple Congressional Oversight Committee engagement).”
“Focus on improving communication between Agency departments, and between the Agency and Lenders. SBA rollouts of new processes are poorly executed. Disconnects between Agency departments such as NGPC and DFC are commonplace due to Agency departments operating as silos, shifting responsibility for Agency follow through to lender follow up. These sorts of things unnecessarily burden lenders and drain limited resources. A focus on communication would be the first necessary step in addressing these issues.”
Also, if you want the information overload, you can read all responses by clicking on this link.