Know The New SBA Requirements to Avoid Guaranty Errors with Business Acquisition Loans
Date: Wednesday, January 3, 2018
Time: 2:00 p.m. Eastern
Go to Registration and Payment | Download a Registration Form
Successful baby boomers are aging and selling their small businesses at record numbers.
The SBA 7(a) loan is a perfect loan product for many institutions to finance transactions with strong cash flow, but poor collateral coverage.
Plus, effective January 1 this lending product is now more attractive to lenders with SBA lowering the amount of equity injection required to close the transaction.
Biz Aq loans clearly fit into SBA’s credit elsewhere and capital to access missions.
But, SBA 7(a) financing has traps with the biz aq loan. The Office of Inspector General warns lenders the highest incident of loan fraud is in biz aq loans. Lenders must take all appropriate steps to mitigate risk.
Understanding seller and buyer motivations is key. The loan underwriter must address these concerns satisfactorily in the SBA 7(a) credit memo.
The down side is Biz Aq loans have the highest incident of SBA lender errors in underwriting, closing and servicing — resulting in SBA 7(a) guaranty repairs and denials.
Former SBA Little Rock Loan Servicing Center Deputy Director Lance Sexton will show you how to avoid these mistakes.
Equally important Lance will also give tips to Chief Credit Officers and Loan Committees what they need to know to avoid these mistakes.
- The New SOP 5010 (J) Biz Aq Loan Guidance
- SBA’s New SOP 5010 (J) Equity Injection Requirements
- Structuring the Biz Aq Loan
- What CCO’s and Loan Committees Need to Know in Approving the Biz Aq Loan
- What to do when Real Estate is Involved
- Determining the amount of the Equity Injection
- Seller carry-back issues
- Documentation seller financing
- Documenting Equity Injection
- Goodwill issues
- Acquiring a Franchise
- The New SBA Franchise Loan Requirements
- Intricacies of Determining Franchise Eligibility
- Documentmenting Franchise Eligibility
- Determining Borrower Affiliations
- Special Cash Flow Calculation Considerations
- Risk Mitigation and Collateral Shortfall Strategies
- Landlord Waiver
- Assignment of Lease
- Business Valuation Requirements
- Real Estate Appraisal Requirements
- Site Visit Requirement
- Special SBA Biz Aq Topics Requirement in the Credit Memo
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Lance Sexton, Coleman Faculty Instructor
Lance Sexton served as Deputy Director of the SBA Little Rock Commercial Loan Servicing Center managing the Servicing of SBA Loans, the liquidation of SBA Express Loans, and the Liquidation of SBA 504 loans in a 24 state area. Lance has 30 years of experience in the origination, servicing, and liquidation of SBA Loans, ten years of experience directly managing portfolios of SBA loans that are both performing and nonperforming, and six years of experience as a small business owner.
Moderated by Bob Coleman, the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the founder of the Coleman Publishing, a publisher of books, data, newsletters and reports and a producer of conferences, webinars and 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 including the Wall Street Journal and Bloomberg. 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.
His passion is getting capital to Main Street and Rural American small business.
Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
We will automatically forward a certificate of participation for those who are registered to attend the webinar via GoToWebinar.
If you have purchased the unlimited site license and would like certificates for all who attend simply forward their names and email addresses to jeanne@colemanreport.com. She will email the certificates to all attendees.
Questions
Questions 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 way is to send an email to joseph@colemanreport.com. Also, feel free to ask pre-webinar questions.
About Coleman Webinars
Coleman is the largest producer of small business banking video webinars and online training for the banking industry.
Our faculty are professional instructors are the absolute experts in their fields.
Why a Coleman Training Webinar?
It’s very cost effective. No airfare, no hotels. Just cram as many people as you wish into your conference room and turn on the computer. You have several options to view the program. You may watch on screen, or listen in on your phone.
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A transcript of the program is also provided to purchasers of the unlimited site license.
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PDF Handouts
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Replay Link
If something comes up and you miss any part of the webinar, or there are technical issues such as a power failure, Internet dropout, fire alarm drills, actual fires or, earthquake (yes that has happened!) simply email joseph@colemanreport.com and he will send you a link you may watch all or part of the webinar at your leisure. There is no charge for this service.
The Fine Print
1) The single user registration fee of $389 is based on location not attendance. You may have as many people in one location attend. You may distribute the materials to anybody in your company.
2) For only $100 more ($589), you may invite as many people from your institution from as many locations as you wish. (You also get the reply link and transcript!) We will forward you a link that allows you to sign up as many people as you wish.
3) Substitutions are allowed at no charge.
4) Cancellations receive a 100% credit for any Coleman product.
5) As with all our products, we offer a 100% money back satisfaction guaranty — no questions asked.
1) Previous customers need only to send an email to joseph@colemanreport.com with “Register Business Acquisition Webinar” in the Subject Line. We will do all the paperwork and charge your credit card on file, or send you a PayPal request.
2) Call Joseph Coleman at Customer Service at 818-790-4591 extension 1
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Bob Coleman
Editor, Coleman Report
28081 Marguerite Parkway, #4525
Mission Viejo, CA 92690
(818) 790-4591
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