Underwriting the SBA 7(a) and 504 Franchise Loan – 12/11
A Best Practice SBA Lending Guide Post-Franchise Directory
Webinar Registration Includes Coleman’s “SBA Franchise Eligibility Cheat Sheet” —
a go-to reference tool for evaluating borrower franchise agreements and the FDD.
A Coleman Webinar
Date: Wednesday, December 11, 2024
Time: 2:00 p.m. Eastern
Includes e-certification & recording
Last year’s SBA rule change eliminated the need for lenders to consider control issues when determining affiliates of small business applicants. As part of this change, the SBA no longer publishes the Franchise Directory, leaving lenders solely responsible for ensuring the applicant meets SBA Loan Program Eligibility Requirements.
At the recent Mid-America Lenders’ conference, many expressed anxiety about how to properly analyze and underwrite franchise loan applications. Without the Franchise Directory to rely on, lenders must review complex franchise agreements, Franchise Disclosure Documents (FDDs), lease documents, and restrictive covenants to identify any potential eligibility issues.
Failure to correctly spot problematic provisions, such as common ownership exceeding SBA’s loan size standards, could result in the business being deemed ineligible, voiding the SBA loan guaranty.
The removal of the Form 2462 requirement also diminishes lenders’ bargaining power with franchisors, who no longer have an incentive to agree to lender-friendly provisions. Lenders risk getting stuck with unfavorable terms if franchisors wait until after financing to execute agreements.
Ultimately, lenders now bear full responsibility for determining eligibility, with little guidance from the SBA on what issues could lead to denial of the guaranty.
Join our comprehensive webinar to learn best practices for underwriting and closing SBA franchise loans, protecting your SBA loan guaranty.
Your team will learn:
• Overview of affiliation based on ownership rules
• Franchise and affiliation rules
• Franchise Eligibility Red Flags
• Underwriting the Franchisor
• SBA SOP guidance for underwriting the Franchise Disclosure Document (FDD)
• Due diligence items to consider with franchise lending
• How experts evaluate franchise opportunities
• Underwriting the Franchise Agreement
• Franchise Covenants Unacceptable for SBA Eligibility
• Underwriting the Franchise Lease
• Know SBA’s definition of “discriminatory hiring”
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 an SBA participant lender and has been affiliated with Coleman Publishing for over 10 years.
Bob Coleman
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the founder of Coleman Publishing, a publisher of newsletters, reports, data, conferences, webinars, online 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. 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. Bob has earned numerous awards as a producer of events and video training.
His passion is getting capital to Main Street and Rural American small business. Bob’s SBA lending roots trace back to institutions in Southern California, serving as Sr. Vice President and SBA Manager of a community bank and a Chief Operations Officer of a SBLC. He is a founding director of NAGGL.
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.
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 webinar link will be included on your sales receipt.
The link will also be included when we send the presentation and handouts. These will be sent by eod the day before.
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 Stripe
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