SBA’s Do What you Do Rule Updated for Start of SBA’s FY24 Compliance and Underwriting SBA 7(a) Loans (10/18)

A SOP 5010 released on a dare from the House Small Business Committee last May was quickly followed by Congressional and industry criticism. SBA appeared to backtrack and promised to consider revisions and issue technical corrections.

A Coleman Webinar
Wednesday, October 18, 2023

75-minute training with e-certification
Register Online Here

Never happened!

Months went by and the new rules simply take effect as the calendar pages turn and we are now ready to enter SBA’s new fiscal year October 1.

Which leaves the industry in a murky area of operating under new guidance while some say some of the old rules will make a comeback.

Expert SBA SOP training guru Lance Sexton will organize this mess for you. He will present a clear, concise instruction of where we are today so you and your staff know how to operate in compliance.

He’ll start with the famous “do what you do” announcement last May and walk through all the paperwork flying out of Washington through the beginning of the fiscal year.

And, note the webinar date of October 18th. That is two weeks past the beginning of SBA’s fiscal year and will give Lance plenty of time to incorporate any new SBA guidance for SBA lenders — specifically underwriters.

In the meantime, here are the documents we’re combining for you:

** April 10, 2023 Notice– Affiliation and Lending Criteria for the SBA Business Lending Program

** April 12, 2023 Notice — Small Business Lending Company Mortarium Recession and Removal of the Requirement for a Loan Authorization

** August 1 2023 — SOP 5010 7, Lender and Development Company Loan Programs

** August 1, 2023 — SBA 5056 1, Lender Participation Requirements

What you need to know today . . . 

  • “Prudent Lending” is defined as “Do What You Do”
  • New Affiliation definitions 
  • What is a “Small Loan”
  • Calculation of Guaranty Fees
  • The Credit Memo for Small Loans
  • Underwriting the Franchise Loan without the Franchise Directory.
  • The loan authorization wizard has disappeared 
  • Closing a loan without a  loan authorization 
  • New SBA SOP 5056 “Lender Participation Requirements”
  • Financing Partial Changes of Ownership

Plus, You and your team will learn what SBA wants underwriters in include in the credit memo:

  • Applicant must be Creditworthy
  • Loan must be so sound as to reasonably assure repayment
  • Prudent Credit Analysis
  • Business Scoring Model
  • Reliance upon Credit Score, Guarantors, Cash Flow, Collateral
  • New Collateral Insurance Requirements
  • Reconsideration after Denial
  • Inadequate collateral
  • Start-Ups
  • Business acquisition
  • Applicant does not meet Lender’s Credit Box
  • Longer Maturity
  • Industry Watch List
  • Management Experience

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.

Lance Sexton, Coleman Faculty Instructor
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 received three training industry awards for his webinar instruction and his 8-week loan closing course.
Lance has over 30 years of experience, including ten years directly managing portfolios of SBA loans. Lance was an entrepreneurship faculty member of the Sam M. Walton College of Business at the University of Arkansas. He is an Executive Vice President of Fountainhead Commercial Capital and has been affiliated with Coleman Publishing for over eight years.

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.

How the Webinar Works

We use GoToWebinar 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.

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 throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second is to send an email to Also, feel free to ask pre and post-webinar questions.

Telephone Only Option
You may also choose to listen to the program on your telephone. The phone number will be provided with the handouts.

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.

Three Easy Ways to Order
1) ONLINE — Register and pay online via Stripe
2) EMAIL –Send an email to 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.