SBA Acquisition Underwriting: How to Review the Quality of Earnings Report — Thurs, Oct 15

Cash Proof, Earnings Adjustments and Credit Memo Documentation Under SOP 50 10 8.1

A Coleman Professional Training Webinar
Date: Thursday, October 15, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording

Pay Online — $500 Single Email
User License

Pay Online —
$800 Unlimited Site License

New Requirements Effective October 1, 2026

SOP 50 10 8.1 requires a Quality of Earnings report for Initial Acquisition and Business Expansion transactions with a business purchase price of $3 million or more. The lender must use the report’s earnings in its debt service coverage determination. The findings can affect the loan amount and how the acquisition is financed.

This webinar focuses on the lender’s work after the report arrives. Thirty-year SBA Veteran and Chief Credit Officer Michael Bland will show how to review the Cash Proof, evaluate the support for earnings adjustments and write the credit memo discussion connecting the QoE findings to the proposed loan amount. The session addresses how to use the report in acquisition underwriting, rather than how to prepare it.

The discussion will address decisions that arise when the report differs from the seller’s financial statements or the original underwriting. That includes identifying questions for the preparer, obtaining support for unresolved adjustments and explaining a revised financing structure to the buyer and approving credit officer before closing.

What the Session Will Cover

When SBA requires a QoE report, how to determine the business purchase price and which transactions are exempt.
Reviewing the preparer’s independence and experience, engagement terms and whether the report was prepared for the lender’s benefit.
Evaluating the Cash Proof and following up on discrepancies among bank statements, financial statements, tax returns and IRS transcripts.
Assessing the documentation supporting owner compensation adjustments, nonrecurring income and expenses, and related-party transactions.
Reviewing how deferred maintenance and differences between cash-basis and accrual-basis reporting affect the earnings analysis.
Evaluating customer concentration, contract continuity and the support for maintaining revenue and margins after the sale.
Using QoE earnings in the debt service coverage calculation and addressing differences from the financial assumptions supporting the business valuation.
Revisiting the loan amount, equity contribution and seller financing when the findings do not support the proposed debt structure.
Writing the credit memo discussion so a reviewer can follow the earnings adjustments, questions resolved and basis for the final repayment analysis.

Who Should Attend

SBA underwriters, credit officers and program managers responsible for acquisition lending, along with business development officers who discuss financing structures with buyers and brokers. The session is designed for teams incorporating the QoE review into an established underwriting process.

How the Webinar Works

We use Microsoft Teams as the webinar platform. 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 webinar link will be sent out prior to the session, and included again when we send the presentation and handouts.

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.

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 online via QuickBooks
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 818-974-8934.