May 25, 2015
By Bob Coleman
Editor, Coleman’s SBA Inspector General Report
Coleman’s SBA Inspector General Report
Good bye to SBA Stats Tuesday and hello to Coleman’s weekly SBA Inspector General Report.
A new weekly column every Tuesday morning devoted to the SBA OIG.
For the next couple of reports I am focusing on the May 15th release of OIG’s continuing concern SBA overpays to SBA lenders for SBA 7(a) guaranty purchases.
The key takeaway?
SBA’s checklist now demands a review the lender’s cash flow analysis for loans that default within 18 months.
Says the OIG, ‘We recommend that any checklist used by NGPC (Herndon) to assess improper payments include the necessary detail to ensure a thorough review of creditworthiness (including repayment ability).’
I’ll explore this further, but the message is clear.
Your cash flow analysis is definately reviewable by SBA in the context of guaranty denials.
More in the coming weeks.