C-Suite Wednesday — What Management Needs to Know about the SBA BDO

May 23, 2018

By Bob Coleman
Editor, C-Suite Wednesday

C-Suite Wednesday — What Management Needs to Know about the SBA BDO

Brent Ciurlino, former SBA Associate Deputy Administrator and Director of Office of Credit Risk Management offered these items for the C-Suite at the Coleman SBA BDO Summit in Napa Valley yesterday.

SBA Lending Stats of the Past Four Years

• SBA 7(a) and 504 Lending Portfolio has doubled — $65 billion to $130 billion
• Active 7(a) lenders have also doubled — 1,750 to 2,800
• CDCs have consolidated from 270 to 179
• Over 50% of the 14 SBLC non bank lending licenses have been acquired by new players

The BDO and the Non-Bank Lenders

Non-bank lenders have been a major recruiter of SBA BDOs in the last three years.

Three or four of the non-bank lenders are leaning toward a non-BDO model in favor of mass marketing and web portals.

Non-bank lenders are diversifying by offering 504 loan products.

What should the C-Suite Look for in a Top Performing BDO?

Adaptability and ability to handle change.
Good understanding of credit.
Minimum $10 million producer.
Ability to sell to the credit box.
Team player with underwriters and closers.

What should the BDO Look for in a Lender?

Ability to sell to the lender’s the credit box.
Ability to create a working team culture.