Preparing the SBA Loan Credit Memo — New SOP and COVID Underwriting Guidance

Preparing the SBA Loan Credit Memo — New SOP and COVID Underwriting Guidance
Ensure You Comply with the New SOP 5010 6 Effective October 1 — 75 minutes of Online Training for your staff

Date: Wednesday, September 16, 2020
Time: 2:00 p.m. Eastern

Download a Registration Form

SBA’s new SOP 5010 6 presents SBA lenders clearer guidance of how to prepare the SBA 7(a) and 504 credit memo. With the added COVID analysis underwriting requirements don’t underestimate the penalties for non-compliance.

A top-10 SBA 7(a) lender learned its credit-memo lessons the hard way, recently settling a Department of Justice false-claim act accusation for $7 million—plus loss of the guaranty, plus jail time for brokers—all stemming from an SBA credit memo the lender’s management believed was compliant.

The SBA’s October 1 SOP creates new challenges and opportunities in SBA 7(a) and 504 lending. Most importantly, the Inspector General has recommended denial of guaranties for all loans that don’t comply.

Here’s the good news: This 75-minute webinar will make your underwriters experts on the SBA 7(a) credit memo. You’ll especially learn about the minefield of possible errors related to equity injection, collateral requirements, financial statements, working capital and eligibility rules.

Above all, this event focuses especially on the most common mistakes likely to provoke red flags and punitive action by SBA auditors, let alone by the Department of Justice, loan committees, bank regulators, your board of directors and other overseers.

This webinar will teach you how to prepare the credit memo efficiently, yet avoid false steps and provide an inspector-general-compliant memo.

Best of all, this training is only $489 (multiple locations from the same organization is a flat fee of $589).

Ensure your underwriting team avoids the greatest credit-memo traps
  • How to account for collateral the SBA way (or, can we really do 100% CRE financing?)
  • Five key time-saving shortcuts for SBA 7(a) loans under $350,000
  • “Working capital adequacy” analysis required of borrower projections
  • How to make your credit-score SBA and regulator compliant.
  • SBA SOP-mandated financial statement analysis
  • Correctly analyzing the impact of affiliates
  • Calculating the debt service coverage ratio the SBA Way
  • Impermissible adjustments to cash flow
  • Business acquisition loan underwriter errors
  • What underwriters need to know about SBA’s equity injection rules
  • Correct completion of SBA forms 159, 912 and 1920.
Plus, COVID-19 Pandemic Credit Memo Issues

According to SBA Procedural Notice 5000-20042, effective August 7 lenders must consider the following
factors when writing credit memos for loans made during the COVID-19 emergency:
• Other loans — such as PPP or EIDL — that could impact cash flow.
• How the applicant’s industry and business operations are impacted by the COVID-19 emergency.
• How restrictions — such as “stay-at-home orders”, social distancing, and trade limitations — have impacted the applicant’s clientele or access to supplies.
• The cost of providing personal protective gear and cleaning materials.
• If the historical financial information reliable based on current market conditions.
• If the applicant is reliant on sales or receivables from a concentrated or diversified customer base.
• If the applicant’s vendor/supplier pool is concentrated or diversified.
• How current market conditions impact collateral.

Taught by National SBA Experts
  • head_coleman

    Bob Coleman, Publisher, Coleman Report

  • head_teckler

    Lance Sexton, Coleman Faculty Instructor

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 $489 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 $100 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 SOP 5010 6 Webinar” 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

Preparing the SBA Loan Credit Memo — New Underwriting Guidance

Bob Coleman
Editor, Coleman Report
28081 Marguerite Pkwy #4525
Mission Viejo, CA 92690
(818) 790-4591
(c) 2020 All Rights Reserved