7(a) Guaranty Purchase Recovery

These days, many SBA lenders are finding that the procedures for collecting on a guarantee from SBA are changing frequently. Unless you are sending in guaranty purchase requests regularly, chances are you simply do not have the time to focus on this level of detail for an event that only arises once in awhile. That is where we may be able to help. Our seasoned team is available to support you with collecting on the guaranty from SBA. If you are like most other lenders, your loan portfolio isn't perfect. In fact, under the current economic conditions, we are seeing more and more businesses run into trouble. Just because your borrower is in trouble, doesn't mean that your bank should be at risk of losing when you go to redeem the SBA guaranty.

Our assistance on the workout and guaranty purchase side can take many forms:

• Access the partners of sbaAccess through your Lender Lifeline, a convenient and simple general consultancy relationship that gives you priority access to the principals and senior associates of sbaAccess.
  • Pay as you go on an hourly basis
  • We remotely analyze key facts of loans in different stages of their guaranty purchase processing and give you a quick and dirty approach to expediting the payment from SBA
• We can establish a short-end project for you where together we define the parameters of the project and quote a fixed price. An example:
  • You have several loans that have defaulted and you need assistance in organizing and presenting your case(s) to SBA for guaranty purchase. You are anticipating possible SBA guaranty repair (maybe even denial) and you would like to up your chances for full recovery. This is where we come in VERY handy.
• Augment your staff development. We can extend the expertise of your team through our expert knowledge and support of what to do, when and how. You subcontract work out to us for a short term basis (we are part of your staff):
  • You have your plate full of guaranty purchases that need to be packaged into the 10 TAB approach required by SBA but don't have the staff to assemble the paperwork. We can come on site (but a lot of it can be done remotely)

Whichever approach you choose, be assured we can support you as you need it, when you need it (we believe in customization). Our team has many years of practical and pertinent experience to help you optimize the dollars under your SBA guarantees. And don't forget, sometimes it is too late for the right kind of help if the deal is already in the tank. If we are consulted early enough in the process, we might be able to mitigate a significant repair (compromise to the guaranty amount) or a full denial of liability under the guaranty.

SBA guaranties are great tools to enhance portfolio quality and support your borrowers with flexible, attractive loan terms. However, unless your guaranty is originated correctly, serviced prudently and worked out effectively - then you may find that your guaranty isn't worth as much as you had once thought. If you find yourself in the middle of a confusing, frustrating workout scenario like this, please feel free to call on us for a free initial consultation. We can't solve every problem 100% but our track record is solid and we are focused on being available to assist you and your team. Don't lose sleep on those problem loans, call us today and get started with The Right Approach.