November 27, 2018

By Bob Coleman
Editor, SBA Hot Topic Tuesday

SBA Hot Topic Tuesday — Top 5 SBA 7(a) Small Loan Audit Exceptions

From SBA’s Quarterly 7(a) Lender Call.

Says SBA these are the five hottest small loan audit exceptions:

  • Credit elsewhere not discussed — 27%
  • Life insurance not discussed — 13%
  • Credit elsewhere missing discussion of liquidity — 11%
  • 1919 missing proper initials — 8%
  • Required equity injection missing — 4%

SBA emphasizes the lender must include in its credit memo the reason the loan is not available from any of the following sources:

Conventional lenders
Other non-federal sources of credit
Liquidity of the small business
Liquidity of owners of 20% owners, including their spouses and children