SBA Construction Lending: Everything You Need To Know

Why Should You Attend:

This presentation provides useful information for SBA lenders about how to protect the bank and client during the process of evaluating, approving, funding and administering construction loans, through a 15-step process.

The course offers an organized explanation of the important sequential evaluation lenders should perform on the project builder, budget, and plan, outside of the typical credit review process.

Learning Objectives:

• Recognize the important attributes necessary to qualify a builder for participation in client financing of real property construction
• Identify the total costs associated with a construction budget to ensure adequate financing is provided for in the entire project
• Review and ensure that essential elements are contained in the construction contract between builder and borrower to protect the lender’s interests
• Understand the importance of property title, lien laws, surveys and fund control in the construction lending process

Areas Covered in the Webinar:

• An explanation of underwriting builders, and signs to guard against that can lead to problems with your loan
• A discussion about the construction budget, ensuring that all components inside and outside of the builder contract are included, including lender administration costs and loan interest
• Urgency of clear title and absence of previous improvement or site disturbance ahead of loan closing
• Some best practices to fund control–how to manage the borrower’s equity and loan proceeds to stay behind of project progress, and ensure that advances never exceed site work
• Identification of key risks associated with construction process, and the steps lenders must follow to manage project, builder, and collateral risks

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 and other 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, a 760-bed for-profit hospital.

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 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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