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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.

Have you ever filed a lien and found you're not in the required lien position on business assets? Or maybe you’ve refinanced debt from another Lender – and then found out they won't release the lien? Let’s talk! There are a few liens that can sneak ahead of your new loan’s filings. These include landlord liens, franchisor liens, or seller liens when the seller provided carryback financing.

Too often, loan changes occur—whether minor borrower updates or significant structural modifications—without being fully reflected in E-Tran. That oversight can result in servicing issues, audit flags, or worse: denial of the SBA guarantee. Here’s why every lender should treat E-Tran updates as an important part of their SBA loan servicing workflow.

Applicant certification requirements under the recently-released SOP 50 10 8 are a mix of new, changed, and familiar. Many of the Applicant certifications can be found in the current Form 1919 from February 2025. However, we’ve heard that an updated Form 1919 is on the way, though its release date – and its changes – haven’t yet been announced.

The Office of Credit Risk Management (OCRM) picked your SBA portfolio to conduct an audit. It could be due to anything from a random...

We often see Lenders forget to take advantage of the support a Lender Service Provider (LSP) can offer. So, when should you lean on an...

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...

Banks have a deserved reputation of being traditionalists, slow to adopt new technologies and often bound up in “how we’ve always done it...

Do you remember our article back in 2022 on Electronic Loan File Stacking , a.k.a ELFS? Maybe not – 2022 was a long time ago! In that...

We’d be willing to bet that your team has some creative workarounds for the sometimes annoying, yet generally unavoidable mismatches...

As part of our SBA lender consulting services, we’re often contracted to complete loan reviews. Whether it’s a post-closing review, an...

For almost my entire career in banking, new projects were handed to me to learn, build initial processes, and then train everyone else.  ...

It’s been a lot these last few months. Three new SOPs from SBA ( 50 10 7 , 50 57 3 , and the updates in 50 10 7.1 ). Inflation...

Do you litigate? Quick answer: yes, you do – and if you haven’t yet, someday you will when a Borrower declares bankruptcy, or there’s...

Whether you’re thinking about starting or expanding your SBA Lending department, or simply updating it based on new SOPs, a key factor is...

SBA is cheerfully categorizing the changes in its recently-released SOP 50 7 3 as “improvements” – which they may well be, but Lenders...

There’s either a Technical Update or revised SOP 50 10 7 coming soon, but who knows when “soon” will be. So, “Do what you do – until we...

There are a lot of changes in the new SOPs 50 10 7 and 50 57 3 , and all of them are effective 8/1/2023. Yikes. That’s just a few days...