Re-Evaluate Your Approach to SBA Lending

This Week’s Complete Connect Article: New Year’s Resolutions

Now is the time to re-evaluate, review and update our approach to doing things in a more productive, efficient and accurate way. There is no better time than the New Year to get a fresh start. You may want to develop a list of worthy goals with a realistic checklist to accomplish this coming year. Here are some to consider:

• Consider all products available through SBA to see if you are missing opportunities to assist your borrower. Do you prefer 7(a), 504, Express, CAPLine, SLA? Why?
• Determine if there is a more efficient way to bring in business. Does your sales force match your lending environment?
• Review your pricing strategies to make sure you are getting the most bang for your buck. Does the pricing on your SBA loans match the risk associated with the transaction?

Have a Gut Check of the Existing Condition of the SBA Loan Portfolio

• Utilize SBA’s loan portfolio review guide to conduct your own internal review (before SBA schedules their own visit).
• Consider hiring an independent, third party to conduct a loan portfolio review to obtain professional feedback as to guaranty integrity.

Update SBA Lending Procedures

• Existing procedures should be updated to coincide with SBA regulation changes.
• Evaluate your existing systems (including software).
• Determine if you have the right people doing the right things (role revising)
• Expound procedures to include every facet of SBA lending – don’t get tunnel vision.

Provide Up to Date Training to Your SBA Lending Team

• Provide “update” training. SBA regulations and procedures change regularly. When training (knowledge) slips, so does everything else.
• Provide different approaches to training. Everyone learns differently (auditory, visual, tactile learners). Bring in “classroom training”, attend conferences, participate in online study rooms and develop job aides/tools.

2013 is here! It is a good time to re-evaluate where we have been and where we are going. What resolutions can you come up with to make the New Year better than the years before in regard to loan production, loan quality and in protecting the integrity of the SBA guaranty?

SBA Complete stands ready to assist lenders with all matters related to their SBA loan portfolios. Our Lender Connect (ongoing technical assistance) service opens the door for you to have prompt access to experts who can assist in addressing specific issues and questions as they arise at all phases of a loan relationship. Visit our website to explore the consulting services and outsourcing resources available. Or contact Karen McHugh at kmchugh@sbacomplete.com for a complimentary consultation on how we can become part of your team. Happy New Year!