January 15, 2019
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA Hot Topic Tuesday — 10 Things to do During the SBA Shutdown
With the SBA shutdown in full swing, here are some things you may wish to consider.
1) Site Visits — I would set a minimum floor of a loan amount and make a point for staff to visit your borrowers. Note, an annual site visit is not an SBA requirement, but a prudent lending requirement. The benefit is to make contact, assess the health of the small business and let them know of additional lending products you can supply when SBA reopens.
2) Update your files and ask for past financial statements and tax returns.
3) The number one reason for guaranty repairs is failure to be in the proper lien position. Check ‘em.
4) Make sure hazard insurance, as well as all other insurance policies have not lapsed.
5) Do a social media and Google Earth search. Document
6) Take the time to study and learn the components of your PARRiS score.
7) Make sure all your SBA wrapout reports are completed.
8) Now is a good time to update your credit box, with specific SBA underwriting requirements.
9) If you have a borrower who needs interim funding consider implementing a program. If that is too risky for you, reach out to a few who are willing to fund. Chris Hurn of Fountainhead Capital announced today a program for interim SBA 504 funding. He can be reached at (407) 233 1504. If there are additional lenders out there who are willing to do SBA 504 or 7(a) bridge loans please let me know and I’ll run there names tomorrow.