Credit Policy for SBA Lending: Understanding Industry Standards

Why Should You Attend:

SBA participating lenders are usually subject to supervisory oversight from at least two different banking regulators, and further, their SBA lending activities are subject to review by the SBA. Often, they can be vulnerable to criticism for lending decisions due to the guidelines set forth in their credit policy, which may be contrary to the general practices of what they permit on SBA loans.

This presentation illustrates some of the risks associated with mismatched credit policy/lending practices, and suggests areas that SBA lenders might consider adjusting their policy to reflect how they use the SBA lending programs.

Learning Objectives:

• Identify policy gaps where SBA lending varies from the guidelines prescribed in the institutional guidelines
• Organize a systematic policy/procedure review to clarify all lending practice differences so to make policy corrections/additions and ensure that SBA activities are in compliance with policy
• Develop stronger lending department skills through a collaborative process utilizing broad participation to root out inconsistencies and missing policy support

Areas Covered in the Webinar:

• Consequences of credit policies that define certain lending standards that are modified in practice for SBA participation
• Evaluation of the current state of institutional credit policy and suggested process to determine consistency with SBA lending practices
• Viewing credit policy through lens of certain SOP mandates such as the Credit Elsewhere rule
• A suggested process to clarify differences between conventional lending and SBA lending through the use of a policy addendum
• Step-by-step examination of various SBA lending activities that require internal credit authority and suggestions of how to provide policy support for these activities

Who Will Benefit:

• Loan Officers
• BDOs
• Relationship Managers
• Credit Analysts
• Loan Underwriters
• Loan Processors
• Chief Credit Officers (CCOs)
• Senior Loan Officers (SLOs)
• Loan Committee Members
• Direct Lending Staff

Charles H Green
Principal, Charles Green and Company

Charles Green is a seasoned commercial lender with more than 35 years’ focus on funding the small business sector. He founded and served as president/CEO of Sunrise Bank of Atlanta, and in addition has served as a director for several companies, including Chair of Atlanta Medical Center.

His previous teaching experience includes the Stonier Graduate School of Banking, Graduate School of Banking at Wisconsin, Graduate Commercial Lending School, as well as online programs for several private enterprises.

He has written extensively about business financing, including the Banker’s Guide to New Small Business Finance (John Wiley & Sons, 2014), Get Financing Now (McGraw-Hill, 2012) and the bestselling The SBA Loan Book, 3rd Edition (Adams Media, 2011). Mr. Green earned a B.S. in Finance from the University of Alabama, diploma from the Stonier Graduate School of Banking, and completed Executive Education at Harvard Business School.

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