October 9, 2019
By Caity Witucki
Contributing Editor, C-Suite Tips Wednesday
SBA C-Suite Tips Wednesday — Learn from Small Business Loan Fraud
Last weekend at a National Alliance of Commercial Loan Brokers (NACLB) conference in Las Vegas, the Coleman Report’s very own, Bob Coleman addressed what loan brokers and lenders could learn from 2019 small business loan fraud cases.
In his keynote speech, Coleman used the top three high profile loan fraud cases of 2019 -Nik Patel, Kerri Agee, and Loren Park – to support his top 10 tips for brokers and lenders to maintain a credible reputation.
1. Never lie to the government or a lender.
2. Understand and apply basic SBA business eligibility rules.
3. Use Google Earth and social media to verify identities and addresses are true and correct.
4. Verify equity injections upfront
5. Utilize the system for award management (SAM) to check that applicant businesses are eligible for SBA funding.
6. Use the loan database on sba.gov to check lender activity.
7. Verify that the borrower’s documents have not been altered or falsified in any way.
8. Be cautious of suspicious lending institution activity – e.g. sudden rapid growth in the number or size of loans produced by an institution.
9. RECOMMENDED – Do not do client projections.
10. Be aware of email and telephone spoofing.
Read More About the Kerri Agee Fraud Case:
Read More About the Nik Patel Fraud Case:
Read More About the Loren Park Fraud Case:
Fraud Friday — SBA Loan Broker Jailed for 9 Years in $100 Million 7(a) Loan Fraud