SBA Inspector General Denys Three More ARAA Loan Guaranties

June 16, 2015 By Bob Coleman Editor, SBA OIG Report SBA’s Inspector General has issued a second audit of early defaulted ARAA SBA 7(a) loans. Nine loans were reviewed, and three loan guaranties were deemed to have been improperly purchased from lenders by SBA. We’ll examine each of the three loans in separate Coleman Reports.…

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Some Light Reading from SBA’s Inspector General

June 9, 2015 By Bob Coleman Editor, SBA OIG Report OIG’s April 2015 was posted last Thursday, and it never fails to impress. “What were they thinking?” “What was their exit strategy?” as well as “The bank did what?” are my most common non-vulgar thoughts. Here’s a quick summary, or read the entire report here.…

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The Amended Tax Return Fraud Scheme

June 2, 2015 By Bob Coleman Editor, SBA OIG Report Coleman SBA OIG Report I always wondered if anybody pulled this one off. File bogus tax returns with the IRS, have the lender certify the returns with the IRS Form 4506, and then file an amended return. Someone did, and got caught. This just in…

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SBA Hot Topic Tuesday – SBA Loan Officers Make Mistakes Too

September 9, 2014 By Bob Coleman Editor, Coleman Report This is fifth and last installment of our coverage of the June SBA Inspector General audit of SBA approval on non PLP 7(a) loans. SBA’s Loan Guaranty Processing Center approved a $2 million 7(a) loan that refinanced same-institution debt and transferred the loss from the lender…

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SBA Hot Topic Tuesday – The Importance of Underwriting Cash Flow Projections

July 29, 2014 By Bob Coleman Editor, Coleman Report Our third installment of SBA Inspector General audit criticism of the Loan Guaranty Processing Center in Citrus Heights is about cash flow projections. Specifically, prudent lenders must credit underwrite cash flow projections to assess if the numbers are reasonable. In 2011, SBA approved a $243,000 based…

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SBA Hot Topic Tuesday – A Monday Morning Quarterback Face Palm

July 15, 2014 By Bob Coleman Editor, Coleman Report I know I have criticized SBA’s Inspector General for pushing the envelope far too many times in questioning lender decisions after the loan defaults. However, I think we can all agree, except for the lender and SBA of course, that this case study is a mess…

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