The 1502 Gap

The SBA Form 1502 report may be everyone’s least-favorite aspect of SBA 7(a) lending.

It’s a source of anxiety for both the SBA 1502 expert on your team as well as your senior management.

Your 1502 worker-bees know it’s the mechanics of the SBA Form 1502 report where the problems start – missing reconciliations, inconsistent timelines, unsupported recoveries, and so on. Researching these issues is time-consuming, frustrating, and anxiety-producing. We’ve heard people calling their SBA 1502 experts “saints,” and we couldn’t agree more.

On the flip side, you have senior management, who may be wondering why it’s taking so long to resolve discrepancies, what those discrepancies mean for the bank’s reputation with SBA, why there are cash-flow interruptions, and whether there could be regulatory exposure or broader SBA compliance concerns.

It’s the same problem, just experienced from two different perspectives. Your 1502 expert is worried about the details of the 1502 reporting and repair process; your C-suite is worried about the results arising from 1502 issues.

You could keep going, as many Lenders do, relying on your saintly 1502 person to research and fix problems and keep ahead of the issues.

But what if you could protect cash flow and reduce risk exposure by eliminating, or at least significantly reducing, the reporting discrepancies in the first place?

The day-to-day 1502 issues are the tip of an iceberg. And to be clear, they’re not the “fault” of your 1502 person – but they could be a problem with your “we’ve done it this way forever” process.

What if you could dig deeper, uncover the root causes of recurring issues, identify the patterns, and implement changes that solve problems before they start?

We promise this can happen. And it’s not wishful thinking, but it does require time that your 1502 person probably doesn’t have. They’re in the depths of the details, and diagnostics like this require coming up out of the weeds to see the bigger picture.

Perhaps you have someone on your team with the strategic systems-thinking skills this requires. If so, we strongly recommend asking them to take this on.

Otherwise, we admit it: this is work we love doing. Yes, we know that’s a little odd, not to say weird, but if you’d like to take advantage of our fondness for SBA 1502 diagnostics and process, our team serves as a trusted SBA Consultant and Lender Service Provider for institutions looking to improve operational efficiency and strengthen SBA compliance.

Give us a call at 877-576-0819, or contact us through this link. 

We’re here to help!