Protect Your SBA Restaurant Loans from Defaults and Guaranty Denials: How to Lend to Restaurants in a COVID Environment
This 75-minute webinar earns e-certification for all attendees.
A Coleman Webinar
Date: Wednesday, May 26, 2021
Time: 2:00 p.m. Eastern
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We called it in 2019 for lenders to prepare for major disruptions in the restaurant industry. (We were right on that one, but ok we didn’t predict the pandemic. We just said prudent lenders should prepare for a downturn!)
Historically, restaurants are the largest recipient of SBA 7(a) loans. And a profitable lending niche when underwritten correctly.
We wrote in 2019:
As well as you prepare for disruptions that are simmering beneath the surface in this business segment—this Coleman webinar gives your underwriting staff new criteria for accurately assessing restaurant loan risk.
The good news is, restaurants are the number one NAICS code for SBA lenders. The bad news is, restaurants make for notoriously risky loans—even during good times.
Today the industry faces upheaval due to a confluence of six disruptive influences that could easily turn imprudent loans into disasters: Robotics, escalating minimum wages, zombie malls, immigration policy, food delivery services and social media. This webinar helps underwriters understand how these critical factors affect risk—as well as how astute lenders can minimize and mitigate them.
Now, for 2021. You and your staff will become SBA restaurant lending experts with the following topics:
- The TEN questions the underwriter must answer
- SBA guidance to lenders regarding COVID and small business lending
- An updated SBA Restaurant Lending Underwriting Addendum
- Restaurant Revitalization Fund Update
- Restaurant PPP Forgiveness Update
- Where we are in the restaurant financing cycle
- How to tighten your credit box standards, and what the standards should be
- Common qualities and behaviors of successful start-up restaurants
- How macro-economic trends will impact restaurant cash flow
- Social media sites you should visit on every restaurant loan
- The important metrics in operating a restaurant, including off-financial statements numbers
- Issues your underwriters must address in the credit memo regarding the franchisor
- Traps with alternative lending options to your borrower
- “Institutional” Restaurant Financing Knowledge from the Experts
- Tips to accurately calculate a restaurant’s cash flow
Plus become an expert on these critical issues, which can protect or poison your restaurant loans:
- Key Question — Are we in the food delivery, or food service business
- Delivery Strategies
- Ghost Kitchens
- COVID protocols and the bottom line.
- Vertical definitions updated for 2020 — quick-service, fast casual, casual dining and fine dining
- Access to 2020 supply and demand stats
- Quick tips to evaluate a location
- SBA specific rules for financing restaurants
- SBA franchise rules for restaurants
- SBA affiliation rules for restaurants
- Loan performance stats by franchisees
- Financial statement metrics for restaurants
- Off-balance sheet metrics
- What brands are hot, and which are not
- What verticals are hot, and which are not
- Lease terms the lender needs for financing
- The landlord waiver
- The assignment of rents
- How to value restaurant collateral
- Restaurants and SBA Collateral Requirements
- What role should liquor licenses play in your evaluation?
- Franchise vs. Mom & Pop considerations
- Environmental assessments and restaurants
- Underwriting projections
- Restaurants and your loan policy
- How to assess management
- Restaurant acquisition structures
- Insurance requirements
- Servicing requirements
- Restaurant failure statistics
- Benchmark food and labor cost numbers
- How much equity should you demand?
- How to use social media to complement your underwriting
- Vertical market risks
- Traps in lending to a single operator who wants to expand
- Multi-operator best practices and benchmarks
- Restaurant Valuation 101
Your Professional Coleman SBA Webinar Instructors:
Lance Sexton, Coleman Faculty Instructor
A former small business owner, Lance Sexton has a successful history of working with small business owners and students related to entrepreneurship and SBA loan origination, servicing, and liquidation.
He has earned three industry SIPA awards for “Best Online Learning Product”.
Lance has over 30 years of experience, including ten years directly managing portfolios of SBA loans.
Lance was an entrepreneurship faculty member of the Sam M. Walton College of Business at the University of Arkansas. He is an Executive Vice President of BankOZK and has been affiliated with Coleman Publishing for over five years.
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the founder of Coleman Publishing, a publisher of newsletters, reports, data, conferences, webinars, online training videos — to help finance professionals become small business lending experts.
Bob is the nationally recognized expert on small business financing. He has appeared frequently on Fox Business News, NPR and other numerous media outlets. He is sourced by all print media. He is a frequent speaker about small business lending throughout the US and EU. Bob has a BA in Medieval History from the University of California Santa Barbara and a MBA in Real Estate Finance from the University of Southern California.
Bob has earned numerous SIPA industry awards including “Podcast of the Year” and as a producer of events and video training.
His passion is getting capital to Main Street and Rural American small business.
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 are strongly encouraged. There are two ways to ask a question during the webinar. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second way is to send an email to firstname.lastname@example.org. Also, feel free to ask pre and post-webinar questions.
How the Webinar Works
We use GoToWebinar for the webinar platform. You will receive a link that will direct you to an Internet site to view the presentation. If you would like to test this process to make sure you will be able to access the link through your system’s firewall, just send an email to email@example.com, and he will schedule a test run.
Note we will open the webinar for attendees to join at 1:30pm ET. This will give each attendee thirty minutes before the webinar begins to troubleshoot any technical issues. Call (818) 790-4591 if you need assistance.
All Coleman Webinar Speakers are seen Live via Video Stream
You will see our speakers live through a video feed. You may customize the size of the speaker and powerpoint presentations by clicking on the webcam button on the GoToWebinar dashboard. You may position the speakers at the top, bottom, right or left hand sides. You may also choose to eliminate the video stream and just view the powerpoint.
Telephone Only Option
You may also choose to listen to the program on your telephone. The phone number will be provided with the handouts.
You will receive the pdf handout via email the day before the event. These may be distributed to all of your attendees.
If something comes up and you miss any part of the webinar, or there are technical issues such as a power failure, Internet dropout, fire alarm drills, actual fires or, earthquake (yes that has happened!) simply email firstname.lastname@example.org and he will send you a link you may watch all or part of the webinar at your leisure. There is no charge for this service.
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.
1) Previous customers need only to send an email to email@example.com with “Register and the Webinar Name” in the Subject Line. We will do all the paperwork and charge your credit card on file, or send you a PayPal request.
2) Call Joseph Coleman at Customer Service at 818-790-4591 extension 1
3) Fax the order form to: 818-790-7859
4) Mail the order form to: Coleman Publishing, 28081 Marguerite Pkwy, #4525, Mission Viejo, CA 92690
5) Click “Add to Cart” to pay using PayPal
100 of the top 100 SBA lenders purchase our reports and data — attend our online training, webinars and summits. Coleman Report is committed to a mission of providing information to train finance professionals as small business lending experts who fund capital to Rural and Main Street America.
Very informative. I have actually printed off all of the information you provided and labeled it: “SBA PPP Good Information Condensed,” Alabama Teachers Credit Union
I find that your webinar training sessions are a GREAT way for me to keep current on important things SBA. Loan Service Provider.
Thanks for providing this training. It was very informative and helped me a lot. Our Bank highly encourages all our colleagues to take your training program. Highly appreciate your service in enlightening our knowledge. The Mint National Bank
This is incredible data. Great job in working through it. Embassy National Bank
Editor, Coleman Report
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