Underwriting Excellence: SBA 7(a) Working Capital and Collateral Documentation — 7/2

A Coleman Webinar
Date: Wednesday, July 2, 2025
Time: 2:00 p.m. Eastern
Includes e-certification & recording

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With the implementation of SOP 5010 8 on June 1, lending practices for SBA 7(a) loans have undergone significant changes, particularly in documenting working capital proceeds and collateral requirements.

Notably, the elimination of “score and go” practices has occurred, where lenders would previously approve large working capital loans without justifying the use of proceeds by the borrower. In a recent quarterly call to lenders, the SBA cautioned about an uptick in defaults for these types of loans.

Join us for Coleman’s exclusive webinar, “Underwriting Excellence: SBA 7(a) Working Capital and Collateral Documentation,” where our expert instructors will help you navigate the updated guidelines. This session will provide critical insights for your underwriters to maintain compliance and deliver excellence in your underwriting process.

This webinar will address the key challenges lenders face in adapting to the revised SOP. Working capital requests with more than 50% of proceeds now require in-depth documentation, and understanding the “why” behind the borrower’s projections is no longer optional. You’ll gain insights into prudent lending practices, learn how to identify ineligible proceeds, and discover how to strengthen credit memos to ensure they meet SBA expectations.

Additionally, the webinar will clarify SBA’s updated collateral requirements. Loans over $50,000 (regardless of purpose) must now address collateral adequacy, values, and potential shortfalls. This session will cover all the latest collateral mandates, including when life insurance is warranted, for various loan purposes such as refinancing debt, funding leasehold improvements, franchise acquisitions, and home improvement loans. As underwriting requirements evolve, ensuring you’re up to speed is pivotal for both compliance and business success.

Don’t miss this opportunity to deepen your knowledge, refine your processes, and stay ahead of the curve on the latest SBA 7(a) requirements. Walk away from this webinar with actionable strategies to improve underwriting excellence, reduce default risks, and lend with confidence under SOP 5010 8’s new standards.

10 Things You Will Learn in This Webinar:

1. Key changes introduced by SOP 5010 8, effective June 1, and what they mean for lenders.
2. Why “score and go” is no longer allowed for loans using over 50% of proceeds for working capital
3. How to justify working capital needs and projections in credit memos to satisfy SBA compliance.
4. Strategies to assess whether working capital requests are masking ineligible uses of proceeds.
5. The importance of collateral documentation for all loans, regardless of loan size.
6. Understanding collateral requirements for loans over $50,000, including valuation and shortfall scenarios.
7. Specific guidelines for underwriting debt refinance, leasehold improvement, franchise, and home improvement loans.
8. When and why life insurance is required as a collateral strategy for certain loan types.
9. Methods to enhance loan performance and minimize defaults tied to excessive working capital use.
10. Practical tips for crafting compliant and concise credit memos with clear use of proceeds explanations.

Your Training Staff

Lance Sexton
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 earned three industry training instruction awards for “Best Online Learning Product”. A former SBA Deputy Director of Little Rock Servicing Center, Lance has over 40 years of experience, including 20 years directly managing portfolios of SBA loans. Lance is an adjunct faculty member of University of the Ozarks. He is an Executive Vice President, Managing Director of Servicing and Liquidation at Phoenix Lender Services and has been affiliated with Coleman Publishing for over 10 years.

Bob Coleman
Bob Coleman is a nationally recognized expert in small business financing and the founder of the Coleman Report, a leading news source for small business lenders. He authored Money Money Everywhere and Not a Drop for Main Street and has been featured in The Wall Street Journal, NYT, Bloomberg, Forbes, Fox Business, CNN, and NPR. Bob has served as SVP and SBA Manager at a community bank, COO of a Small Business Lending Company, and is a founding director of NAGGL. He’s passionate about expanding capital access for Main Street and rural businesses. He holds an M.B.A. in Real Estate Finance from USC and a B.A. in Medieval History from UCSB. He’s also known for producing award-winning training and events for small business finance professionals.

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Coleman Training Testimonials

“This was some of the best training I have attended. I loved the format, and the narrow focus of the topic. The cost was such that we could have more of our staff attend.” – Regional Bank

“I find that your webinar training sessions are a GREAT way for me to keep current on important things SBA.” – Loan Service Provider

“Thanks for providing this training. It was very informative and helped me a lot. Our Bank highly encourages all our colleagues to take your training program. Highly appreciate your service in enlightening our knowledge.” – Community Bank

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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 (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 link will be included when we send the presentation and handouts, which is done prior to the webinar.

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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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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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 via Quickbooks Credit Card Link $500 or Quickbooks Credit Card Link $800
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
Publisher, Coleman Report
bob@colemanreport.com