Trust But Verify: SBA Credit Memos and AI
AI can be a useful tool for SBA Lenders, helping reduce the time spent organizing information and drafting credit memos. It can summarize documents, identify trends, and create first (emphasis on first, please) drafts in minutes.
But the rule everyone should remember is: TRUST BUT VERIFY.
(We’ve all seen news reports of various professionals relying on AI and not verifying, only to be caught out with fictional references and other career-ending problems!)
Rebecca Mendoza
Jul 8
To Compromise or Not to Compromise (on principal)
Principal compromise is a viable option when an SBA 7(a) loan runs into trouble, and the only other option is SBA loan liquidation.
It’s helpful for the business owner, because it allows them to keep on keeping on.
But there are some significant risks and potential “gotchas” for the Lender, especially when navigating SBA SOP 50 57 guidance. Let’s take a look.
Rebecca Mendoza
Jun 5