Tip of theWeek

Tips for Stretching Your Training Budget 

In this season of graduations, the sacrifices and true value of a hard earned education are perhaps top of mind for many of us.  Isn’t it interesting how many folks consider their education complete when they finish formal schooling (high school, college or graduate school)?  Most of us in the “real world” know that the learning has just begun at that point in time – we know we are beginning to learn when we realize how much more there is to learn!   Do you remember your first “ah ha” moment you had while contemplating the SBA SOP’s?  Maybe it was something like “oh so that’s what credit elsewhere really means and now I understand why it is so important to clearly document each 7(a) loan file for compliance to why the SBA guaranty is necessary.”  

We often use the word training to capture the larger concept of education.  By definition, education “is the development of the abilities of the mind (learning to know)”.  However, training is “practical education (learning to do) or practice, usually under supervision”.    A common expression in adult learning circles is “training is for dogs, learning is for humans”.  Regardless of what we call it, as long as we understand that in our business, training is not just about learning how to do things in a set way.  It is ultimately about understanding how the pieces and parts of a business loan fit together to form a reasonable, well supported, compliant financing for a business borrower.  It is about learning how to lend “the SBA way”.

We believe it all starts with a foundational understanding and respect for the SBA and its loan programs.  It sums up as a disciplined, systematic approach to documenting key elements of eligibility, credit worthiness, fund disbursements, prudent servicing and effective workout and liquidation.   The life cycle of an SBA loan has many elements and the rule books can be confusing and tedious. At the end of the day, can we boil it down to a set of simple facts – was the loan eligible, did it make sense, was it closed and funded correctly and did everyone do what they were supposed to do after closing?  If not, did the workout follow prudent lending principals and specific SBA requirements?  These are the kinds of questions and more that should be pondered while on the road to SBA knowledge.

So how can we get there?  Some would say, just do it.  You can’t learn if you don’t do.  While true, left unchecked this alone can be a dangerous approach.  Others might say, “read, listen and learn until you get it.” You may have heard this called the old “sit and get” approach.  Classroom training has a place but why is it that studies show that adults retain less than 25% of what they learn in a “traditional” class setting?  We believe the answer lies in understanding how different adults learn and what we as adults need in order to effectively learn.

• Are you highly analytical and need to have clear facts presented in a logical way? 
• Are you a process person who has to understand the system in order to make the right connections?
• Perhaps you need things personalized for you, so that you can appreciate how something is going to impact you practically. 
• Or maybe you are somewhat of an “open to” possibilities type person and your favorite question is “what if”? 

Regardless of your learning style, we know different adults need to receive information in a way that suits their individual style.  So it follows that effective training takes all this into account so that everyone can learn at their pace and in their way.

So when you as manager or a team member in a SBA group are confronted with the question, how do we best spend our precious resources (time and money) on human capital development (training), here are a few tips we thought you mind find helpful, especially in these tough budget times.

Ø  Develop a training plan for each individual and the department overall.  Some forward thinking companies actually embed staff development into the annual performance or review process.  Strengths are highlighted and further strengthened, but gaps are viewed as opportunities for growth. 

• Take it to a very tactical level by asking:  what can we specifically do to bridge this need? What class, what approach will match up with our need to evolve and grow in this particular area?  

Ø  Identify core competencies for each job role in your group and map the acquisition of those competencies with an ideal offering 

• The business development officer should have basic consultative sales training in order to effectively listen to borrowers needs and prescribe effective financial solutions. 
• An underwriter, regardless of how seasoned, must understand the SBA way of documenting eligibility and credit factors on a 504 or 7(a) loan if that loan is going to stand the test of time.
• The SBA closer must not only understand the basics of legal documents in the perfection of an SBA loan, but should also understand how the credit memo flows into (both lender and SBA) approval which then translates into a formal authorization document that drives the process the rest of the way.

Ø  Tailor different approaches for different job families.  For example, the approach with sales people is usually a more conversational, facilitated, “get them talking” approach.  Whereas credit underwriters need tangibility: facts, figures, proven approaches and clear rules.  Differentiate your audiences and customize approaches that will best suit their ability to learn.

Ø  Follow up and provide practice opportunities and practical day to day work flow to reinforce the new learning.  Consider setting aside a portion of a team meeting to highlight a certain important issue that perhaps arose out of a recent deal.  Making the practical connection soon after formal training is a great way to reinforce and help it to land for the long haul. 

At sbaAccess, we are committed to delivering best in class training for the SBA lending industry.   The team is committed to lifelong learning and our passion and experience translates into a golden opportunity for you and your team.   Is budget a concern?  We understand.  We provide many flexible and value oriented approaches to helping you and your staff increases your knowledge and skills.  Consider the different approaches we offer up to our clients: 

• We come to you
• We customize the training to your needs
• We design “interactive”, hands on approaches to learning
• We provide timely and relative materials to supplement the presentation
• We mix approaches (not just a power point….think FUN)

• Access by telephone and computer

• Break the training into “mini” presentations, to spread out over a period of time (to accommodate the real world work place)    Think 2 hour segments each day for several days (not a full day on the phone)

• Topic Focused (rather than talk about the entire closing documentation requirements – let’s just focus on the loan authorization, for example)

• Invite us to a local lender event (Conferences, luncheons, roundtables, focus groups)

• Our keynote presentations are motivational, upbeat….but informative

• Break out session topics should be timely and succinct (and interesting….not the same old message).  Try us out to generate enthusiasm among your attendees

• You only have one or a couple of staff members, so it doesn’t make sense to have a classroom training

• We will design an “online” course (think correspondence learning) to address their learning requirements

• AND, we will be available by phone, chat room and/or email to answer follow up questions and “coach” them through the topic

• Most student only retain 25% (or less) of what they learn in a classroom setting UNLESS they have something to “tie” them to the topic after the class is over

• We supply guides, “cheat sheets”, flow charts, templates (and much more) in our inventory of resources

• Purchase them separately, or have us build them into the training we design for your team

Call us for a free consultation, or click http://www.sbaAccess.com and tell us about your needs.  Let’s see if together we can develop a plan that will help you achieve your training goals, on time and within budget.

Brian Burke and Karen McHugh

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