OUR BLOG

Let’s start here: SBA lending is not “small commercial lending with extra paperwork.” Instead, it’s strategic risk management guided by the SBA SOP. Why? To start with, the government guaranty fundamentally changes risk exposure. And then there’s the community aspect: SBA loans allow banks to safely serve small-business Borrowers that might not qualify for a standard commercial loan. This helps stabilize not only the local business community, but also the bank’s overall credi

In SBA 7(a) Lending, you obviously have to focus on the factors that make a loan eligible. Business acquisition, partner buyout, equipment purchase, working capital – these criteria matter for compliance and eligibility. But those criteria, while important, aren’t the only factors that determine whether a deal succeeds. As SBA Lender service providers and consultants, we recognize that all loans are unique unto themselves.

There were a lot of U.S. bank mergers & acquisitions (M&As) in 2025 – over 170, according to American Banker, which is a significant increase from prior years – and there are still more pending as we go into the new year.

If you’ve followed us for any length of time, or if you’ve had the pleasure (!) of being a client, you know we love SBA Lending. In fact, you may know that we happily and proudly call ourselves SBA Geeks. We truly enjoy helping our bank clients meet the needs of the small businesses in their community – the businesses that are the backbone of our country’s economy.

Lenders have always been responsible for verifying owners’ citizenship and residency according to SBA SOP 50 10 8. But beginning January 1st of 2026, and then again as of March 1st, standards have changed and are being enforced with greater precision. In short, ownership eligibility now more than ever is a key consideration for SBA compliance.

Your SBA lending program is only as strong as your team – and in today’s highly-regulated and definitely fast-changing environment, success depends on your team’s collective understanding of the entire SBA loan lifecycle. And that’s where SBA Lender training – including cross-functional training – become more essential than ever.

There are two primary ways Lenders run into trouble with loan originations. The first – Screen-Outs – applies only during General Processing (GP) submissions. The second – Compliance Code Holds – occurs within the automated SBA compliance engine, applying to both GP and Preferred Lender Program (PLP) submissions.

Let’s start with a sense of real urgency: all SBA Form 1502 errors reported to you by the FTA should be handled as your top priority, in the same month as you’re notified. Why? Because if the mismatches aren’t corrected in the reporting month, corrections are likely to become more complex, and the mismatches may continue to increase.

As always, NAGGL was a whirlwind of meetings, workshops, information, and saying Hello! to new and old friends. We’ll be writing more about what we learned in the coming weeks – and to start with, here are a few quick tips.

Collateral Oversight and the Cost of Missed Recoveries When a Borrower’s loan is in trouble, collateral is a whole lot more than a checkbox on your to-do list. It’s a foundational element in SBA’s expectation that you, as a Lender, will take appropriate action to maximize recovery and minimize loss. If you’re not careful to safeguard collateral and manage liquidation, you risk losing out on expected financial recovery. And when SBA reviews your servicing practices and decides

SBA is clear: if you don’t document equity injection according to their requirements, you risk repair and potentially even denial of your SBA guaranty. For Lenders, the key to staying in compliance often comes down to having strong processes, practical guidance and the right support in place. That’s where lender consulting services and structured SBA lender training can make all the difference.

I’m just back from this year’s America East conference, and one of the things I heard from several attendees was – acquisitions are still happening, and the people inheriting the acquired bank’s SBA portfolio are concerned.

As an SBA lender, the SBA guaranty offers essential protection supporting your institution’s willingness to extend credit to small businesses. But that protection comes with responsibilities, not the least of which is the duty to act in a timely manner throughout the life of the loan – and especially when the loan is in distress.

SBA debt refinancing can get complicated – and staying aligned with SBA guidelines for Lenders is essential. The latest SBA guidance in SOP 50 10 8 provides clarification on multiple issues. They’ve updated how debt refinancing is handled, and they’ve also reinforced the importance of the long-standing message that SBA loans aren’t intended to transfer risk or cover Lender losses.

Loan Applicants have always had to obtain appropriate insurance, and Lenders have always had to ensure it’s included in the Terms & Conditions and the Credit Memo. No new news there. But there are some new updates that Lenders should be aware of to make sure they remain in SBA compliance.

Back in December, we believed FTA’s SBA training looked reasonably well done and complete. While there have been many opportunities for training sessions, there’s still confusion surrounding error codes and exactly how to fix them. We can offer Lender consulting services to support your team while they work their way through these issues.

Pain points. Bottlenecks. Inefficiencies. Every SBA Portfolio Manager deals with them. And your SBA portfolio can stagnate if you don’t...

(Did you miss parts I and II, reviewing what to focus on before and during a bank merger for SBA 7(a) teams? Part I is here , and part II...

Part I of our series on how to handle the SBA portfolio during a merger – discussed what you need to do before the merger: assessing the...

Mergers are seldom easy, no matter what industry you’re in. Bank mergers, with all the associated regulations and financial...