Can you just imagine two seasoned SBA lenders having a conversation something like this?

Lender A: "SBA plans to conduct their on-site review of our portfolio next month. The EIC called and said to pull all pari passu and EPC/OC loans as part of our sample. Make sure the 1050s have all supporting documentation."

Lender B: "Yeah, we need to show them that we take our PLP status seriously. Gather up all the PDKs so they can see how thorough we are when it really counts. We want OCRM to give us a good report".

Lender A: "Right, and after you ETran that latest package tomorrow, we will have a good example that includes LPR and space occupancy issues. We did get the 4506-T back on that one, didn't we?"

Lender A: "We are good to go. No worries. With the SOP and the CFR close at hand, I am confident we will be okay. But another project on my plate involves the most current 1502, I need to see if we can resolve the error report that the FTA sent over this week."

Now, if you are a veteran SBA-er, this conversation made perfect sense to you, didn't it? If you are new to SBA lending, it possibly did seem like a foreign language. There is a bit of a learning curve to the SBA lending world, not only because of all the rules and regulations (that seem to change regularly), but also because of the agency and industry talk that all of us seem to take on as we move up the learning curve.

It takes time to acclimate, but there are resources to help. The SOP 50 10 5 (B) provides definitions in certain sections (specific to topic). However, we have placed a "job aide" on the Special Access section of our website called "Unique Terms and Acronyms from the World of SBA lending".  We plan to continually add to the list of definitions as we come upon them. Our Special Access members (active clients and subscribers to the service) tell us they really appreciate this new and innovative resource available to them on their schedule, 24 X 7.

Presently, we include detailed definitions, but also tips to navigate the terms included in the guide. For instance, you probably already know that SBA loan proceeds may never go to an associate of the business. Did you also know that the term during which an associate relationship exists commences six months before the date of the small business application to SBA, CDC or lender?

What about the answer the following questions:

• What is the maximum disbursement period for a term loan? When does SBA consider a revolving line of credit as fully disbursed?
• What is SBA's definition of an early default? If the borrower made late payments or the lender deferred payments, but the loan was brought current after those events but now is in default....what date does SBA consider the loan to have officially defaulted?
• Are 4506s required on the guarantors of a SBA loan?
• How is a new business defined?

SBA is all we do. We are here to help SBA Lenders navigate the SBA lending world by taking the curves out of the road. We provide training customized to your needs. We provide technical assistance through our Lifeline services.Get us on your team. We speak this "peculiar" language fluently.

Take the Right Approach.
Karen McHugh and Brian Burke

SBA Access ©2009 - All Rights Reserved
All content is copyrighted and unauthorized use is strictly prohibited. If you would like to quote any part of this text, email bburke@sbaaccess.com or kmchugh@sbaaccess.com for permission.

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