Solving Difficult SBA Servicing Problems — Webinar 3/22

A Live Streaming Training Webinar

Solving Difficult SBA Servicing Problems

Release of Guarantors
Release of Collateral
Offer in Compromise

A Coleman Training Webinar
Date: Wednesday, March 22, 2023
Time: 2:00 p.m. Eastern
Download a Registration Form

a 75-minute training class that lets staff earn e-certification

There are two types of difficult one-off servicing actions facing lenders — actions facing lenders where the borrower is current, and actions where the borrower is having financial difficulties.

Lance Sexton’s webinar will address both scenarios and offer solutions that meet your borrower’s needs and to mitigate your risk.

Servicing Actions for Borrowers with Excellent Payment History

First will be a review of actions you may take unilaterally without SBA’s concurrence under its “prudent lending” guidance.

Lender unilateral servicing actions include:

  • Lien subordination
  • Collateral release
  • Guarantor release
  • Guarantor’s liability reduced
  • Lower interest rate
  • Extend maturity date
  • Change life, flood or hazard insurance requirements

Lance will discuss appropriate lender documentation, SBA notification and allowable fees.

Servicing Actions for Delinquent Borrowers

Then there are the actions that can expose the lender to additional risk.

The goal is to mitigate the lender’s exposure by creating a win-win solution that meets SBA’s rules, lender risk and assurance of the survivability of the small business.

Some unilateral actions include:

  • Increase loan amount
  • Approve new funding
  • Payment deferments
  • Reamortization
  • Additional Collateral or Guarantors

However, despite everyone’s good intentions, liquidation of collateral will occur in some situations.

This is the time to consider how to use an offer in compromise to solve problems.

An offer in compromise and release of guarantor liability allows for maximum SBA and lender recovery while allowing the borrower to move on from an unpleasant chapter in their life.

Lance will review elements of a Workable Compromise Offer

  1. Amount offered bears a reasonable relationship to the net amount recoverable through enforced collection.
  2. No fraud or misrepresentation.
  3. Full disclosure of financial capacity of obligor(s) has been made (SBA Form 770, etc.).
  4. Borrower has ceased operations and all business collateral (assets) has been liquidated.
  5. Participating lenders concur in the action.
  6. Valuations provided for realty mortgaged to SBA or subject to judgment by SBA are supported.
  7. Source of funds for payment of the offer clearly identified.

To recap your team will learn how to manage complex servicing actions:

  • Structuring Offers and Releases for SBA Approval
  • How to Obtain SBA Approval
  • Where to Send Requests
  • The Role of you Local SBA District Counsel
  • Allowable Fees
  • What SBA wants to know from SBA Form 770 (Debtor Financial Statement)
  • SBA Approval Criteria for Collateral Release
  • SBA Approval Criteria for Guarantor Release
  • Documenting the Offer in Compromise

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.

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 box on the GoToWebinar dashboard. The second is to send an email to joseph@colemanreport.com. 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 Paypal

2) EMAIL –Send an email to joseph@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. Pay your Quickbooks generated invoice with a credit card. Download a Registration Form

3) PHONE — Call Joseph, Bob or Michael at  818-790-4591.

Solving Difficult SBA Servicing Problems

Bob Coleman

Publisher, Coleman Report

bob@colemanreport.com