Implementation Guidance for New SBA 7(a) and 504 Regs Effective April 3!

Implementation Guidance for New SBA 7(a) and 504 Regs Effective April 3!
Correctly Document and Underwrite Personal Liquidity, Credit Elsewhere, Equity Injections and SBA Loan Eligibility
75 minutes of Online Training for your staff

A Coleman Webinar
Date: Wednesday, April 25, 2018
Time: 2:00 p.m. Eastern
Download a Registration Form
Five Easy Ways to Register

1) Register Immediately by Ordering Online Here!

2) Simply email with the webinar name in the subject line. For previous customers we will do all the paperwork and charge your credit card on file.

3) Or, call Joseph Coleman at 818-790-4591 extension 1,

4) Fax an order form to 818-790-7859.

5) You can even send a check with an order form to: Coleman Publishing, 28081 Marguerite Parkway #4525, Mission Viejo, CA 92690.

That didn’t take long. Several of the new SBA SOP changes for the 7(a) and 504 loan programs effective January 1 have been rescinded.

The problem is many of the changes remain.

Do you and your staff the underwrite and closing changes that were effective January 1 and were not eliminated?

Check out this paragraph from the new regs.

SBA is increasing the minimum percentage ownership at which owners are subject to personal liquidity consideration from 10% to 20%. As a reminder, the liquidity of the owner includes the liquid assets of the owner’s spouse and any minor children.

Fortunately, Coleman professional webinar instruction Lance Sexton has the answers:
  • How to document credit elsewhere
  • How to document credit elsewhere in the credit memorandum
  • What is the standard to make a “determination as to the availability of credit from nonFederal sources related to the Applicant.”
  • How much personal liquidity is too much to make the borrower ineligible for SBA financing and void the guaranty?
  • What must a prudent lender do in underwriting minority owners after April 3?
  • Just exactly how are you to analyze the “liquid assets of the owner’s spouse and minor children?”

And SBA has introduced new rules for partner buyouts.

Lance will instruct your underwriters and staff about partner buyouts, and business acquisition loans
  • Documentation required
  • Equity required
  • Cash equity required
  • Subordinated debt documentation
  • Borrower certifications required
  • Proforma balance sheet minimum standards

Lance will address the balance of the SOP Notice

CDCs and SBA lending teams will learn:
  • For CDCs, how exactly do you “demonstrate the need for desired credit (Credit not available Elsewhere)”
  • A review of a prudent SBA lender standard of the personal liquidity test — absent SBA guidance
  • Exactly how to document credit elsewhere in the credit memo and file
  • What documentation to obtain from minority shareholders who own less than 20% of the small business
  • Eligible marijuana periphery small businesses located in states with legalized pot
  • What to do If your SBA 7(a) or 504 borrower leases their property to a pot farm?
  • Equity injection requirements for partner buyouts
  • Documenting equity injection for partner buyouts
  • Equity requirements for 7(a) small loans
  • A review of the monitoring requirements for working capital CAPLINES 7(a) loans
 Taught by National SBA Lending Experts
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    Lance Sexton, Coleman Faculty Instructor

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    Bob Coleman, Publisher, Coleman Report

Lance Sexton served as Deputy Director of the SBA Little Rock Commercial Loan Servicing Center managing the Servicing of SBA Loans, the liquidation of SBA Express Loans, and the Liquidation of SBA 504 loans in a 24 state area. Lance has 30 years of experience in the origination, servicing, and liquidation of SBA Loans, ten years of experience directly managing portfolios of SBA loans that are both performing and nonperforming, and six years of experience as a small business owner.

Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the Publisher of the Coleman Report, a trade newsletter and website for SBA and small business lenders. He produces online training videos and webinars for small business lenders to teach them to make less risky loans to Main Street.

Webinar Details

Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.

We will automatically forward a certificate of participation for those who are registered to attend the webinar via GoToWebinar.

If you have purchased the unlimited site license and would like certificates for all who attend simply forward their names and email addresses to She will email the certificates to all attendees.

Questions are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second way is to send an email to Also, feel free to ask pre-webinar questions.

About Coleman Webinars
Coleman is the largest producer of small business banking video webinars and online training for the banking industry.

Our faculty are professional instructors are the absolute experts in their fields.

Why a Coleman Training Webinar?
It’s very cost effective. No airfare, no hotels. Just cram as many people as you wish into your conference room and turn on the computer. You have several options to view the program. You may watch on screen, or listen in on your phone.

You can choose to have any many connections nationwide as you wish when you purchase unlimited access for only $589.

A great benefit of the program is that you may have your questions answered by the faculty. All of our webinars are recorded. Buyers of the unlimited site license option will receive a DVD recording of the event to share with anyone you wish.

A transcript of the program is also provided to purchasers of the unlimited site license.

How it 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, and he will schedule a test run.

Accessing GoToWebinar
There are two ways to access the webinar. The first is to simply click on the link we will provide when you register.

If you have a firewall issue, or you can’t get the GoToWebinar link to work, don’t panic!

The second way to access the webinar is directly from the GoToWebinar website. You will simply need to input the webinar ID and access code. These will also be provided when you register, and again the day before the webinar when we distribute the handouts.

Note we will open the webinar for attendees to join at 12:00pm ET. This will give each attendee two full hours 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.

PDF Handouts
You will receive the PDF handout via email the day before the event. These may be distributed to all of your attendees.

Replay Link
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 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) The single user registration fee of $389 is based on location not attendance. You may have as many people in one location attend. You may distribute the materials to anybody in your company.
2) For only $200 more ($589), you may invite as many people from your institution from as many locations as you wish. (You also get the reply link and transcript!) We will forward you a link that allows you to sign up as many people as you wish.
3) Substitutions are allowed at no charge.
4) Cancellations receive a 100% credit for any Coleman product.
5) As with all our products, we offer a 100% money back satisfaction guaranty — no questions asked.

Five Easy Ways to Order!

1) Previous customers need only to send an email to with “Register Credit Elsewhere” 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

Implementation Guidance for New SBA 7(a) and 504 Regs

Bob Coleman
Editor, Coleman Report
28081 Marguerite Pkwy #4525
Mission Viejo, CA 92690
(818) 790-4591
(c) 2018 All Rights Reserved