Underwriting Projections for SBA 7(a) and 504 Loans When Historical Cash Flow Is Not Enough — Thurs, Sept 17
A Coleman Training Webinar
Date: Thursday, September 17, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording
Includes electronic certification and recording
Historical cash flow does not always support the requested financing. When that occurs, the transaction may still qualify based on projected repayment.
This underwriting challenge arises in ownership transitions, expansion projects, construction loans, commercial real estate purchases, and new business ventures. In each case, the lender must determine whether future cash flows are sufficient to repay the SBA debt.
The underwriting question is straightforward.
Do the projections support approval, and does the credit memorandum clearly document why?
SOP 50 10 8 allows lenders to rely on projected financial performance when the assumptions are supported, projected repayment is reasonable, and the credit file explains the basis for approval.
Projections should be used when a specific, documented change in the business is expected to produce stronger future cash flow than the historical results demonstrate. This includes acquisitions, expansions, completed construction projects, ownership transitions, new contracts, increased operating capacity, and other identifiable events, so long as they are justified. The lender must test each assumption, calculate projected debt service coverage, and document why the anticipated cash flow provides reasonable assurance of repayment.
In this practical webinar, Michael Bland demonstrates how to underwrite SBA 7(a) and 504 loans that depend on projected financial performance. Using real-world underwriting examples, he shows how to test assumptions about revenue, gross margin, operating expenses, staffing, working capital, and debt service.
He also explains how to identify weaknesses before approval and prepare a credit memorandum that supports the lender’s decision and withstands SBA review.
What You’ll Learn
• When projected cash flow can support approval of an SBA 7(a) or 504 loan
• How to determine whether management’s projections are realistic, achievable, and supported by the transaction
• How to test projected revenue, gross margin, operating expense, staffing, and working capital assumptions
• How to calculate projected debt service coverage and evaluate repayment capacity
• How to underwrite acquisitions, startups, expansion projects, construction loans, and ownership transitions that depend on future earnings
• How to document projected repayment for SBA submissions and delegated credit decisions
• How to write the repayment analysis section of the credit memorandum using projected financial performance
• Common projection errors that weaken SBA loan requests and how to identify them before approval
• What documentation belongs in the credit file to support approval and withstand SBA review
Your Instructor
Michael Bland
Chief Credit Officer, Lendesca
Michael Bland brings 30 years of SBA lending and credit experience to Coleman training. As Chief Credit Officer of Lendesca, an SBA loan service provider, he oversees credit policy, underwriting, loan approval, portfolio risk, and SBA compliance.
Since beginning his SBA career as a credit analyst in 1996, Michael has underwritten and managed thousands of SBA 7(a) and 504 loans. His experience includes business acquisitions, commercial real estate, construction, startups, expansions, and transactions that depend on projected financial performance.
Who Should Attend
SBA underwriters, Chief Credit Officers, SBA managers, commercial lenders, credit analysts, credit administration professionals, and loan committee members responsible for reviewing and approving SBA credit requests.
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
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3) PHONE — Call us at 818-974-8934.