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