Franchise Lending: SBA Underwriting Compliance under SOP 5010 8 — 7/16

A Coleman Webinar
Date: Wednesday, July 16, 2025
Time: 2:00 p.m. Eastern
Includes e-certification & recording

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$500 Single Email User License

Pay Online —
$800 Unlimited Access License

Franchise lending is undergoing transformative changes under the new SOP 50 10 8 regulations—and you need to master the new rules. Join Lance Sexton, Coleman’s award-winning SBA Training Instructor, for an exclusive, high-impact webinar as he unpacks the critical updates affecting franchise financing.

From tougher equity injection requirements to navigating the franchise directory, this must-attend webinar will provide actionable strategies to help you stay SBA-compliant, mitigate risks, and close deals with confidence in this evolving landscape.

Why Attend?

Gain clarity on how the new SOP impacts franchise lending, particularly in:

Working Capital Disbursements: Understand the financing rules for SBA-compliant franchise loans.
Leasehold Improvements: Learn the new standards for landlord waivers and lease assignments.
Franchise Acquisitions: Navigate borrowing complexities, including partial seller financing.

With so many sweeping changes, this webinar will give your SBA underwriting staff the expert tools to adapt to the latest SBA requirements and close more deals.

Meet the Expert: Lance Sexton

Lance Sexton is one of the most trusted names in SBA lending compliance. Known for his practical insights and hands-on approach, Lance brings a wealth of expertise to help lenders confidently navigate SOP changes with real-world strategies you can implement immediately.

Key Takeaways from the Coleman Report Franchise Lending Webinar

Affiliation Rules and Ownership Thresholds
Gain clarity on SBA’s affiliation guidelines, especially how ownership percentages impact loan eligibility and control.
Understanding Franchise Affiliation Triggers
Learn how franchise agreements can trigger affiliation and potentially disqualify applicants from SBA eligibility.
Red Flags in Franchise Eligibility
Identify common red flags in franchise agreements and operations that may raise eligibility concerns with SBA underwriters.
Underwriting the Franchisor’s Strength
Discover how to evaluate the financial and operational health of the franchisor as part of your credit analysis.
Analyzing the Franchise Disclosure Document (FDD)
Understand the SBA-required underwriting guidance for reviewing key items in the FDD, including Items 3,19 and 20 financial performance representations.
Critical Due Diligence Practices
Master the due diligence checklist specific to franchise loans — from litigation history to territory protection and transfer clauses.
Undervaluating Franchise Agreements
Learn what provisions in the franchise agreement may violate SBA rules, including mandatory supplier relationships or excessive control.
Covenants That Violate SBA Eligibility
Identify unacceptable covenants in franchise agreements that create affiliation or undermine independent business control.
Underwriting Franchise Lease Agreements
Explore best practices for reviewing franchise lease terms, including subordination clauses and lease assignment provisions.
10% Cash Equity Injection Rule Explained
Understand the updated requirements for minimum equity injections, what qualifies as cash equity, and how to document it.
Complying with Ownership and Reporting in E-Tran
Learn how to correctly input ownership data and changes into E-Tran, especially with complex business structures.
Updated Residency and Citizenship Requirements
Review new residency standards for SBA guarantors, including documentation and verification of status.
Entity Formation Best Practices
Discover how to structure entities in a way that satisfies SBA regulations and minimizes affiliation risk.
Structuring Seller Financing Under New Rules
Understand the limitations and opportunities when using seller notes to meet equity injection or financing gaps.
Impact of Partial Ownership Changes
Analyze how the SBA will treat ownership transfers and recapitalizations after loan closing.
International Ownership Structures and Compliance
Get techniques to assess and report foreign ownership to maintain transparency and SBA eligibility.
Loan Eligibility Based on Tax Transcripts
Understand the implications of IRS Form 4506-C transcript verification on SBA loan approval.
New Insurance Requirements
Learn the updated standards for requiring hazard and life insurance on franchise-related SBA loans.
One-Time Close and Side Agreement Compliance
Learn how to prepare for the single-closing mandate and manage the risks posed by side letters or unapproved agreements.
Staying Compliant While Closing Deals
Get practical tips to maintain compliance throughout the lifecycle of the franchise loan — from origination to servicing.

Pay Online —
$500 Single Email User License

Pay Online —
$800 Unlimited Access License

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Your Training Staff

Lance Sexton
As 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 training instruction awards for “Best Online Learning Product”.
Lance is a former SBA Deputy Director of Little Rock Servicing Center, and has over 40 years of experience, including 20 years directly managing portfolios of SBA loans. Lance is an adjunct faculty member of University of the Ozarks. He is an Executive Vice President, Managing Director of Servicing and Liquidation at Phoenix Lender Services and has been affiliated with Coleman Publishing for over 11 years.

Bob Coleman
Bob Coleman 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 awards as a producer of events and video training. His passion is getting capital to Main Street and Rural American small business.

Coleman Training Testimonials

“This was some of the best training I have attended. I loved the format, and the narrow focus of the topic. The cost was such that we could have more of our staff attend.” – Regional Bank

“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.” – Community Bank

How the Webinar Works

We use Microsoft Teams as the webinar platform.
We will open the webinar for attendees to join at 1:30 pm 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.

Recording
All Coleman webinars are recorded and a link is sent to all attendees.

Single Site License
The single site license grants your institution one viewing of the webinar. It is permissible to use a single site license on one device in a conference room to be viewed by multiple attendees The webinar can be viewed on any device.

Multiple Site License
A multiple site license is an unlimited access pass for anyone at your institution. You will be given a link that will be usable to anyone with your email domain.

Webinar Links and Handouts
The link will be included when we send the presentation and handouts, which is done prior to the webinar.

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.

Coleman Report Webinar Benefits:

Coleman Report webinars provide solutions to problems that left unaddressed will jeopardize the SBA loan guarantee.
We give management the tools to create prudent credit boxes compliant with SBA’s standard operating procedures.
We train your staff to ensure compliance of existing and new SBA rules and regulations.
Tips that solve difficult SBA underwriting, servicing and liquidation challenges.

Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.

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.

3 Easy Ways to Order
1) ONLINE — Register and pay via Quickbooks Credit Card Link $500 or Quickbooks Credit Card Link $800
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.