The Next SBA Loan Audit Risk: Undocumented Debt and Unsupported Working Capital — Thurs, July 23
A Coleman Professional Training Webinar
Date: Thursday, July 23, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording
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Effective March 1, SBA introduced documentation requirements that change how lenders must verify borrower debt obligations and working capital needs.
Lenders must now obtain the two most recent months of commercial bank statements for the borrower’s primary operating account and reconcile those statements to the debt service coverage ratio analysis.
This change moves SBA underwriting beyond financial statements and tax returns. Lenders are now expected to verify actual cash-flow behavior through operating account activity and to demonstrate how debt obligations were identified and analyzed.
For experienced SBA lenders, this is more than a procedural adjustment. It changes how compliant credit files are built and documented.
Most lenders already have established underwriting processes. The challenge is determining how bank statement analysis fits into those processes and how the results should be documented within the credit file.
SBA also reinforced an existing requirement related to working capital. When 50 percent or more of loan proceeds are allocated to working capital, the lender must explain in the credit memorandum why that level of working capital is necessary for the business.
Together, these requirements place greater emphasis on documentation, verification, and narrative support within the credit file.
Hosted by Michael Bland, this session examines how lenders are incorporating these requirements into their underwriting workflows and credit memorandums.
Attendees will review practical approaches for:
• Analyzing commercial operating account activity as part of SBA underwriting
• Reconciling debt service calculations to actual bank activity
• Identifying recurring debt obligations and lender payments
• Detecting merchant cash advances and other short-term liabilities
• Evaluating revolving line of credit utilization through account activity
• Building debt schedules supported by bank statement evidence
• Documenting working capital needs within the credit memorandum
• Strengthening credit file support for SBA review and audit purposes
• Reducing file repair risk through more complete documentation
• Creating a clearer record of underwriting analysis and lender decision-making
The discussion will focus on how experienced SBA professionals are approaching these requirements in practice, how documentation expectations are evolving, and how lenders can build stronger, more defensible credit files.
How the Webinar Works
We use Microsoft Teams as the webinar platform. 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 sent out prior to the session, and included again when we send the presentation and handouts.
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 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 QuickBooks
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 818-974-8934.
Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com