How Cross-Training Strengthens Your SBA Lending Program

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.

Obviously, every employee should excel at their individual duties. 

But when team members are unaware of how their role fits into each of the many steps in an SBA loan’s life, confusion, inefficiencies, and mistakes are likely to follow. At best, that slows things down; at worst, you end up with SBA compliance issues; and at really worst, you could be putting your entire SBA program at risk.

On the other hand, with a training approach that includes a focus on cross-training, you create context and understanding for all employees, resulting in a collaborative, integrated SBA team that supports program growth and full SBA compliance.

Why cross-training matters more than ever

We all know SBA guidelines for Lenders are in a constant state of evolution. Lenders are – reasonably enough – required to stay up to date with current SBA SOP expectations and requirements.

That begins with loan origination and follows through to closing and servicing – and, yes, the unfortunate necessity to manage liquidation and default.

When business development and sales staff understand SBA closing procedures and requirements, they can be proactive about collecting relevant documentation, reducing downstream delays and rework. 

And when closing and servicing staff understand liquidation requirements, they gain appreciation for why proper injection sourcing, eligibility analysis, and documentation are important. Each correctly-executed step contributes to a defensible guaranty purchase package and timely payment in the event of default.

But wait! there’s more!

Cross-training also leads to better internal communication and feedback. When everyone understands the context within which their role fits, they’ll contribute valuable insights to improve procedures, checklists, and workflows. You might be surprised by how much untapped knowledge is waiting for you to uncover.

Finally, SBA expects Lenders to maintain effective, well-documented training programs to keep staff up to date on current SBA SOPs. Training is no longer “just” a best practice; it’s a requirement. Keep track of your training schedule and document who’s attended – you’ll need this for review in the event of an SBA OCRM examination. It’s never a bad thing to demonstrate your commitment to SBA compliance!

Need help?

You’re managing production goals, compliance demands, and the ever-present challenges of SOP updates and staffing issues. 

As we’ve said before, we’re SBA geeks – and that means we love training (yes, really!). We offer customized training programs for every step of the SBA lending process, as well as refresher courses on specific topics. Let us help you improve efficiency, reduce risk, and ensure full SBA compliance. Give us a call at 877-576-0819, or drop us a line here. We’re ready to help!