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  • Writer's pictureLori N. McCausland

The real perils of inexperience

The number of new business startups in the last few years simply exploded previous records.

And that means more business owners than ever before are seeking SBA support.

But with the mass exodus from traditional jobs, the next generation of talented SBA lenders may have a hard time finding mentors.

Which means you, dear Lender, may be at risk. If your staff are new to SBA lending, you could be exposed to costly mistakes – even if you have robust processes and procedures in place.

And if you’ve relied on internal mentorship to bring new staff members up to speed – well, that too could be a challenge, given the shortage of experienced personnel.

One of our recent clients acquired an SBA 7(a) portfolio from a non-bank lender. Several of the loans were in liquidation status – but since the loans hadn’t been reviewed prior to the acquisition, numerous documentation errors required a lot of work dealing with repairs. And then there were the costs associated with denial of guaranty on loans with exceptionally severe errors.

Another client brought us in to assist while they replaced their entire back-office staff. One of the first things we discovered was two years (not a typo!) of 1502 discrepancy reports that had never been opened. You can probably imagine the fines and penalties that resulted! Fortunately, we were able to analyze their SBA portfolio and work with the Fiscal Transfer Agent (FTA) to get everything back in sync.

We’ll spare you any further horror stories – and yes, we do have more, including many where we were able to help clients resolve discrepancies and rescue loan guarantees.

Here’s the thing: if you’re in a situation where you have inexperienced or overwhelmed staff, you need help. And we have options, because one size doesn’t fit all.

  • What’s your current set-up? We customize training to your style, your culture, and your needs.

  • Our live training modules are specific to the stages and phases of an SBA loan’s lifecycle and to your staff’s experience levels.

  • As your staff becomes more experienced, we move from doing the work for you, to reviewing what your people have done, to consulting on some of the more unusual situations, to conducting periodic loan reviews of files you’ve completed.

With the upcoming issuance of new SOPs, training takes on additional importance in your SBA program. Want to learn more and consider options? Contact us for a consultation to see how we can help.


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