June 26, 2023
Main Street Monday – Keeping up with Regulatory Changes Creates Difficulties for Lenders
Last week, the “Futureproof Your Credit Department: Technology That Delivers” webinar and Coleman Report Live! show gave insights into the sentiment and priorities of SBA loan departments. Here are survey results based on the responses of our Coleman Report audience:
When asked what new SBA regulation changes are at the forefront of their SBA team’s mind, the top answer was the removal of the SBA authorization planned for August 1 (67% of viewers). The second most popular answer was the elimination of the franchise directory with 44% of viewers voting for it. A third of viewers voted for more reliance on the lender for credit scoring models and increasing SBA 7(a) small loans to $500,000.
The biggest issues our viewers are facing in SBA lending are keeping up with the latest regulation changes and the time consuming process to follow up with borrowers and process loans (67% of voters for each). The third leading pain point for small business lenders was outdated technology (33% of votes). Lastly, a quarter of lenders reported struggles with finding, hiring, and training enough experienced SBA staff.
According to our viewers, 40% of financial institutions are seeing increasing rates of loan delinquencies, and more than half reported that SBA loan delinquencies were about the same at their financial institutions. Only 3% answered that SBA loan delinquencies were decreasing.