Solving Very Difficult SBA 7(a) Loan Servicing Issues — A Coleman Webinar 3/14

Topics Include:

Attend the Live Webinar Event
Thursday, March 14, 2024
2:00 PM Eastern
75-minute training with 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 Delinquent Borrowers
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:

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

Actions requiring SBA’s approval include workout plans. A carefully crafted plan can turn a problem situation back to a performing loan status.
Despite everyone’s good intentions, liquidation of collateral will occur in some situations. Early preparation of a liquidation plan is a must.
This is the time to also 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.

Servicing Actions for Borrowers with Excellent Payment History
There are a number of tools in your toolbox to solve problems for borrowers with an excellent payment track record.
Lance 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 also discuss appropriate lender documentation, SBA notification and allowable fees.

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.

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Your Training Staff

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 Microsoft Teams 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 586-804-8775 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.

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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 in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.

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.

3 Easy Ways to Order
1) ONLINE — Register and pay online via Stripe
2) EMAIL –Send an email to cindy@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.
3) PHONE — Call us at 818-790-4591.

Bob Coleman
Founder & Publisher