OUR BLOG

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.

In the world of SBA lending, time is rarely on your side when a loan begins to go sideways. What starts as a borrower missing a payment can rapidly snowball into a full-blown default, asset deterioration, or legal complications — and before you know it, you’re staring down an SBA loan liquidation process with escalating 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.

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.

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.

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...