Now what Happens to that PPP Loan?
Includes the new Guidance SBA Procedural Notice 5000-812316 (Released July 15, 2021)
Wednesday, August 11, 2021
Time: 2:00pm ET
A 75-minute Coleman Webinar with staff e-certification
This Coleman webinar answers a very opaque question — what to do with unforgiven PPP loans?
Lenders, and borrowers, need to know the various deadlines for filing paperwork. And, defining exactly what is required.
Complicating the situation — approval date, varying covered periods and the loan disbursal amount.
But what happens when SBA turns down the forgiveness paperwork? Or the borrower simply fails to provide the documents?
What if there are no payments. What do you do with an immediate delinquency?
And, what are the lender’s responsibilities in servicing and liquidating the loan?
Servicing the 60 Day Delinquent SBA and PPP Loan
Painful truth: Once an SBA loan goes delinquent, the lender’s risk skyrockets.
Clearly, you want your servicing staff to swing into action—the right action—at the moment your SBA loan becomes non-performing.
Failure to properly service a non-performing SBA loan dramatically increases the risk of a costly repair or even denial of the SBA guaranty.
The lender has many options — refinancing, deferments, workout agreements, liquidations. We’ll cover them all.
Here are the specific benefits making your staff experts in PPP unforgiven and delinquent SBA loans.
SBA Procedural Notice 5000-812316 (Released July 15, 2021)
SBA Guaranty Purchases and Lender Servicing Responsibilities for PPP Loans
PPP Lenders are required to:
Keep an accurate record of the loan under its control (not with agent)
Collect and apply loan and forgiveness payments
Submit separate monthly SBA Form 1502 report that include loan status
Document all loan modifications, including changes of ownership
Issue a decision to SBA when a borrower submits for forgiveness within 10 months of the covered period
Lender may request simultaneous guaranty purchase and charge-off from SBA when the borrower:
Is 60 days or more past due on scheduled loan payments and default has not been cured
Is Permanently closed, does not plan to submit a forgiveness application
Has Filed for Chapter 7 bankruptcy protection
Has filed for Chapter 11, 12, 13 bankruptcy and at least 60 days has elapsed from the end of the deferment period, or any time after an order is entered confirming a plan, if the plan does not provide for payment of 100% of the underlying debt;
In the case of self-employed individuals, sole proprietors, single-member LLCs, or independent contractors, the owner is deceased
Lender may request guaranty purchase without charge-off when:
The borrower or any owner of 20% or more of the borrower, has been indicted for or convicted of a felony related to the PPP loan; or
If the borrower has filed an appeal with the Office of Hearings and Appeals (OHA) for adjudication (program guidance), after the Lender has made a final decision to deny forgiveness. Lender may request guaranty purchase 60 days after the borrower has formally filed the appeal with OHA
Your Professional Coleman SBA Webinar Instructors:
Lance Sexton, Coleman Faculty Instructor
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 SIPA awards for “Best Online Learning Product”.
Lance has over 30 years of experience, including ten years directly managing portfolios of SBA loans.
Lance was an entrepreneurship faculty member of the Sam M. Walton College of Business at the University of Arkansas. He is an Executive Vice President of BankOZK and has been affiliated with Coleman Publishing for over five years.
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 SIPA industry awards including “Podcast of the Year” and as a producer of events and video training.
His passion is getting capital to Main Street and Rural American small business.
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 are strongly encouraged. There are two ways to ask a question during the webinar. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second way is to send an email to email@example.com. Also, feel free to ask pre and post-webinar questions.
How the Webinar Works
We use GoToWebinar for the webinar platform. You will receive a link that will direct you to an Internet site to view the presentation. If you would like to test this process to make sure you will be able to access the link through your system’s firewall, just send an email to firstname.lastname@example.org, and he will schedule a test run.
Note we will open the webinar for attendees to join at 1:30pm 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.
All Coleman Webinar Speakers are seen Live via Video Stream
You will see our speakers live through a video feed. You may customize the size of the speaker and powerpoint presentations by clicking on the webcam button on the GoToWebinar dashboard. You may position the speakers at the top, bottom, right or left hand sides. You may also choose to eliminate the video stream and just view the powerpoint.
Telephone Only Option
You may also choose to listen to the program on your telephone. The phone number will be provided with the handouts.
You will receive the pdf handout via email the day before the event. These may be distributed to all of your attendees.
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 email@example.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) 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.
1) Previous customers need only to send an email to firstname.lastname@example.org with “Register and the Webinar Name” 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
3) Fax the order form to: 818-790-7859
4) Mail the order form to: Coleman Publishing, 28081 Marguerite Pkwy, #4525, Mission Viejo, CA 92690
5) Click “Add to Cart” to pay using PayPal
100 of the top 100 SBA lenders purchase our reports and data — attend our online training, webinars and summits. Coleman Report is committed to a mission of providing information to train finance professionals as small business lending experts who fund capital to Rural and Main Street America.
Very informative. I have actually printed off all of the information you provided and labeled it: “SBA PPP Good Information Condensed,” Alabama Teachers Credit Union
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. The Mint National Bank
This is incredible data. Great job in working through it. Embassy National Bank
Editor, Coleman Report
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