It’s been a lot these last few months.
Inflation (mercifully under control and declining).
Rising interest rates (sadly not declining).
And 2024 is looming, which means all the end-of-year tasks are here – along with everyone’s holiday plans.
Let’s take a quick look at what’s most important (so you can get to your holiday plans!).
1. Have you scheduled a third-party review of your SBA portfolio?
You know how it is: something you see every day becomes invisible. And that’s why a third-party review of your portfolio is so important; they can spot the things you might be overlooking and catch small issues before they become big problems.
2. What have you learned from your last loan review – and from your day-to-day operations throughout the year?
Here’s a different perspective for you: there are always good things to capture and bring forward, along with the mistakes everyone tends to focus on.
So when you look back on the year’s learnings, remember to identify the positives as well as the negatives, and incorporate both in your process updates.
3. And then there are those SOP changes!
If you haven’t already, now is definitely the time to update your policies, procedures, and checklists with those changes. Then you can go into the New Year with confidence that you’re set up for a great start to a good year.
4. Are there gaps in your team’s knowledge and understanding that could be filled with
some hands-on training?
Some of those SOP changes are subtle and will need extra attention to avoid slipping into out-of-date habits. And other changes are more sweeping – which also will need care to avoid errors. Training is not a luxury; it’s a necessity to ensure your SBA team is operating smoothly.
5. Did you recently receive a Receivables Report from SBA? Several of our clients have asked us what this means.
It could be one of several things.
Your annual service fee may be building up on loans that are behind, and you haven’t paid the fee on the 1502 Report because you’re waiting for those late payments.
Or Express loans aren’t being submitted for repurchase quickly enough, and annual service fees are still accruing.
Or you have other repurchase issues that require payments to SBA.
These are not something you can safely ignore or overlook, because they play into red flags that trigger SBA reviews and portfolio rating changes, and the problems can grow over time depending on the cause. They can get lost in the day-to-day – so be sure you are using the resources available to get them reviewed and resolved.
Whether you bring us in to help, or you rely on internal support, please don’t neglect any of these points as you close out your year. Mistakes in SBA lending can be costly, and a little preventive goes a long way. We’re here to answer your questions, help with those loan reviews, and conduct training – whatever it is you need to make sure your 2024 starts on the right foot. Give us a call at 877 576 0819 or reach out through our Contact form!
And of course, we wish you the best of holidays and a beautiful start to the New Year.