SBA Collateral Insurance Coverage: A 2025 Update – 12/4
Cancellation Strategies — Force Place or Waive?
Analysis Required in the Credit Memo
Servicing Action Documentation Required for the File
A Coleman Webinar
Date: Wednesday, December 4, 2024
Time: 2:00 p.m. Eastern
Includes e-certification & recording
One of the topics at the recent NAGGL conference was how SBA lenders must react to a recent movement by the insurance industry to cancel or greatly reduce their exposure from natural disasters such as hurricanes, fires, and earthquakes.
Lenders must follow SBA regulations and decide whether to force-place insurance or waive the requirement. In any event, lender documentation must be perfect in case the loan defaults and must be presented to SBA for a purchase of the guarantee.
Coleman Professional Faculty Instructor and SBA servicing and liquidation expert Lance Sexton will share the knowledge he gained at the recent conference about what actions SBA wants lenders to take, both proactively and reactively.
He will outline the unilateral decisions you may make as a PLP lender and when you need to obtain SBA’’s approval. In any case, documentation is key, and he will instruct you on what these memos must contain.
Did you know there are 15 types of insurance coverage listed in SBA SOP 50 10? (Hint!) These include hazard, wind, hail, earthquake, state-mandated, marine, flood, life, liability, product liability, dram shop/host liquor liability, malpractice, disability, and worker’s compensation. Lance will cover each of these topics and how to address insurance covering required collateral.
He will review what underwriters must address in the credit memo insurance requirements for loans less than and greater than $500,000, as well as proper closing procedures.
Careful attention will be paid to ensure you know how to match insurance requirements with the use of proceeds and collateral. Importantly, participants will also understand varying insurance requirements demanded by SBA based on the loan amount.
The SOP gives the prudent lender the ability to waive insurance. The webinar will discuss the circumstances under which prudent lenders may waive insurance and what you need to do to document the loan file.
You and your staff will:
● Learn about SBA loan dollar amount collateral insurance thresholds.
● Understand collateral insurance requirements at loan closing and during servicing.
● Gain knowledge about the SBA loan servicing matrix.
● Learn how and when to force-place insurance and when to waive insurance requirements.
● Get insights into perfecting insurance documentation for SBA loans.
● Understand the clauses and requirements demanded by SBA for hazard insurance.
● Learn how to handle situations where insurance is not fully available.
● Discover insurance requirements for real estate and personal property.
● Understand the lender’s loss payable clause and its implications.
● Gain knowledge about SBA and flood insurance requirements.
● Learn when “key man” life insurance may be required.
● Have a plan of action for dealing with lapses in insurance coverage.
● Understand SBA’s insurance escrow payment account policies.
● Develop credit policies for insurance requirements on SBA loans.
● Familiarize yourself with the fifteen references to insurance in the SBA SOP, covering various types of insurance such as hazard, wind, hail, earthquake, flood, liability, and more.
● Learn what your credit policy should be for insurance requirements on SBA loans less than $500,000.
● Learn what your credit policy should be for insurance requirements on SBA Express loans.
Your Training Staff
Lance Sexton
A former small business owner, Lance Sexton has a successful history of working with small business owners and students related to entrepreneurship and SBA loan origination, servicing, and liquidation. He has earned three industry training instruction awards for “Best Online Learning Product”. A former SBA Deputy Director of Little Rock Servicing Center, Lance has over 40 years of experience, including 20 years directly managing portfolios of SBA loans. Lance is an adjunct faculty member of University of the Ozarks. He is an Executive Vice President, Managing Director of Servicing and Liquidation at an SBA participant lender and has been affiliated with Coleman Publishing for over 10 years.
Bob Coleman
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the founder of Coleman Publishing, a publisher of newsletters, reports, data, conferences, webinars, online training videos — to help finance professionals become small business lending experts. Bob is the nationally recognized expert on small business financing. He has appeared frequently on Fox Business News, NPR and other numerous media outlets. He is sourced by all print media. He is a frequent speaker about small business lending throughout the US and EU. Bob has a BA in Medieval History from the University of California Santa Barbara and a MBA in Real Estate Finance from the University of Southern California. Bob has earned numerous awards as a producer of events and video training.
His passion is getting capital to Main Street and Rural American small business. Bob’s SBA lending roots trace back to institutions in Southern California, serving as Sr. Vice President and SBA Manager of a community bank and a Chief Operations Officer of a SBLC. He is a founding director of NAGGL.
Coleman Report Webinar Benefits:
- Coleman Report webinars provide solutions to problems that left unaddressed will jeopardize the SBA loan guarantee.
- We give management the tools to create prudent credit boxes compliant with SBA’s standard operating procedures.
- We train your staff to ensure compliance of existing and new SBA rules and regulations.
- Tips that solve difficult SBA underwriting, servicing and liquidation challenges.
How the Webinar Works
We use Microsoft Teams as the webinar platform.
We will open the webinar for attendees to join at 1:30 pm ET. This will give each attendee thirty minutes before the webinar begins to troubleshoot any technical issues. Call (818) 790-4591 if you need assistance.
Recording
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 included on your sales receipt.
The link will also be included when we send the presentation and handouts. These will be sent by eod the day before.
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 Stripe
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 818-790-4591.
Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com