Coleman’s 2013 SBA BDO Compensation Survey

SBABDOCompSurveyWhat a difference a year makes. Sky high SBA 7(a) secondary market premiums and record loan volume are driving the compensation of the SBA 7(a) and 504 business development officers.

Coleman’s 2013 SBA BDO Compensation Survey analyzes in depth the new landscape of how to pay the SBA BDO professional.

The survey breaks out compensation according to performance buckets:

Above Average
Below Average

For each bucket, the survey reveals,

Production Levels

Average Total Compensation

Average Base Salary

And, the all-important compensation as a percentage of loan volume calculations, giving management an effective tool to determine the fairness of its compensation packages — to both the lender and the BDO.


While there are still some commission plans based on your father’s SBA — e.g. 1% of the guaranteed loan portion, most have been replaced by the commission matrix.

Lenders use the matrix to steer BDO production in line their credit boxes.

The report lists various commission matrix components that add or subtract to the BDO’s income.


Many lenders increase the potential commission a BDO can make as they bring in more deals through the door. The most common reason for the use of the tier is it allows the lender to be able to recoup the BDO’s base salary.

For the first time, we list specific tiers SBA BDOs are earning today.

Commissions Linked to the SBA 7(a) Secondary Market

Near-historical SBA 7(a) secondary market premiums have influenced compensation. Lenders are willing to allow BDOs to share in the premiums, as a type of profitability protection for the institution.

We list 15 specific actual tiered commission programs tied to the secondary market premium.

We list 9 specific commission programs tied to the secondary market, that are not tiered.

Commissions as a Percentage of Loan Amount

We detail 9 specific commission programs tied to tiers and as a percentage of the loan.

Finally, we have 7 specific traditional examples of non-tiered commission plans.

Clawbacks and Holdbacks

New to this year’s survey are over 25 actual clawbacks used by the industry.

Also in the report are retention bonuses and milestone bonuses.


As a free add-on, you will receive the transcript and power point of Coleman’s 2013 SBA BDO Compensation webinar.

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