Underwriting SBA 7(a) Small Loans After SBSS, PLUS Extensive Coverage of SBA’s February 20 Notice and the New 2-Month Bank Statement Safe Harbor — 2/24

A Coleman Training Webinar
Date: Tuesday, February 24
Time: 2:00 p.m. Eastern

Recording and e-certification provided.

Webinar content has been changed to incorporate the February 20 Procedural Notice 5000-876777.

The biggest change?

New and expanded guidance on how lenders must analyze two months of commercial bank statements — and a new underwriting safe harbor.

In this live training, we will cover the February 20 Notice extensively, including:

• What changed from the January 16 version
• What SBA now means by “confirming” debts and obligations
• How two months of bank statements must tie directly to your DSCR calculation
• How to document this properly in your credit memo
• How the new safe harbor works

SBA has made one thing clear with the elimination of the SBSS score era: repayment ability must be documented and verified. It is no longer enough to calculate debt service. You must confirm it.

And a huge change. SBA now requires lenders to obtain and review two months of bank statements to validate every obligation included in the debt service calculation.

And emphasizes their “prudent” lending standard. SBA has stated this is not a “do what you already do” approach. This is a mandatory verification standard that SBA will check.

This Coleman webinar addresses the new rules underwriters’ demands. We’ll parse the notice to address how to specifically comply with the point of the notice. MCA debt.

These changes require updates to underwriting practices, credit memorandums, and internal credit policies to protect the SBA guaranty in the event of default.

This Coleman webinar walks your underwriting team through exactly how SBA expects these files to be evaluated, how to properly document repayment ability, how to analyze the required 60-day bank statements, and when you must decline a loan even if historical cash flow appears positive.

What You Will Learn

• The analysis underwriters must perform with the two-month bank statements.
• Understand how SBA defines repayment ability post SBSS using cash flow and the required debt service coverage calculation.
• Learn what to include from income statements, tax returns, and two months of bank statements to support coverage. See how SBA examiners treat projections and what documentation is required when historic coverage falls below 1.10 : 1.
• Know what documentation is necessary in the credit memorandum to satisfy SBA.
• Determine how to apply internal scoring models for credit history without substituting for repayment ability.
• Gain clarity of SBA’s expectations to uncover merchant cash advance loans and one-time deposits in underwriting.

Benefits for Your Lending Team

• Improve underwriting consistency for 7(a) Small loans with a documented, cash flow based approach.
• Reduce risk of SBA exam findings by knowing exactly what documentation SBA examiners expect to see.
• Increase approval certainty by aligning your credit memo and file documentation with the new SOP requirements.
• Enhance credit officer confidence in making better risk decisions using coverage and bank statement analysis.
• Streamline underwriting procedures with clear steps for coverage calculation and bank statement review.
• Ensure compliance with SBA statute and policy while still maintaining a practical and efficient process.
• Position your lending team ahead of competitors who have not yet adapted to the new repayment ability requirement.

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Your Training Instructor

Lance Sexton
Lance Sexton brings unmatched expertise to SBA servicing and liquidation training. A former small business owner himself, Lance understands firsthand the challenges lenders and entrepreneurs face. He has more than 40 years of experience in SBA lending, including 20 years directly managing portfolios of SBA loans.
Lance served as Deputy Director of the SBA’s Little Rock Servicing Center, giving him unique insight into how the Agency views compliance, servicing, and guaranty purchase. He has personally overseen SBA loan portfolios worth billions, and today he serves as Executive Vice President and Managing Director of Servicing and Liquidation at Phoenix Lender Services.
Lance is also an award-winning educator, having earned three national industry awards for “Best Online Learning Product.” He is an adjunct faculty member at the University of the Ozarks and has been affiliated with Coleman Publishing for over 11 years, where he has trained thousands of SBA professionals nationwide.

By the Numbers
– Personally involved in more than 500 SBA 7(a) guaranty purchase cases totaling over $500 million
– Serviced portfolios for more than $2 billion in SBA 7(a) loans
– Managed servicing, liquidation, and guaranty purchase for over $4 billion in PPP loans
– 40+ years of SBA lending and servicing expertise

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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.

Webinar Links and Handouts
The webinar link will be included when we distribute the presentation and handouts shortly before 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.

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 818-790-4591.

Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com