Your SBA Team’s Hidden Staffing Risk

Who’s your go-to SBA expert?

Every SBA Lender has one. The person everyone relies on. The person who knows everything about how things are done. The one who knows the ins-and-outs of SBA Form 1502 reporting, what happened on that weird loan two years ago, and instantly understands the impact of the latest SBA SOP updates or SBA Notice.

They’re the backbone of your Lending team. They’re experienced, dependable, and invaluable.

And – as you may have gathered from the title of this article – they’re also one of your biggest operational risks.

Wait, what? Risks? Having someone that reliable and knowledgeable is a risk? You probably thought they were a tremendous asset.

They are.

But what happens if – when – they retire? Or are lured away by another bank? Or go on unexpected medical or FMLA leave?

Whoops. Now you have a hole in your team that’s not easily filled. And that can lead to delayed closings, reporting problems, inconsistent servicing, missed deadlines, and the dreaded SBA compliance exposure.

The go-to person isn’t the problem

The problem is that they’re the go-to person. There’s no back-up expertise available.

Many community banks intentionally operate with lean SBA teams. The loan volume just doesn’t require multiple specialists. This is perfectly fine and makes complete sense.

The risk comes when there’s no back-up plan.

Think about the key tasks and responsibilities of your team and how they support ongoing SBA compliance. When we ask our clients that question, their first thought is usually SBA Form 1502 reporting – but there’s more, of course. Underwriting, eligibility, closing, servicing, ongoing loan file maintenance, and so on.

Who backs up the expert?

Yes, rely on your expert. But take some of the load off. Being the only person who knows All The Things might be a feather in that team member’s cap, but it can also be exhausting.

Build confidence in your overall team by ensuring that there are other people who can pick up some of the load.

That means you:

• Create easily-accessible written procedures, workflows, and checklists, and keep them up-to-date with the latest SBA SOP updates and Notices. Don’t let them get stale, or they’ll be worse than useless.

• Make sure to include more than just project-level items, such as “submit the monthly 1502 report.” How? What are the tricky bits and potential trouble spots? What documentation is required?

• Create opportunities for designated back-up staff to not just observe, but actually complete, steps in the process.

• Schedule regular team reviews of SBA SOP updates, SBA Notices, and operational changes.

• Rotate responsibilities so everyone has a chance to learn and grow.

Maintain everyone’s peace of mind by ensuring this is in place before your go-to person announces their retirement!

Strong SBA departments aren’t built around one indispensable expert. They’re built around documented processes, shared knowledge, and teams that know they can rely on each other – not just that one person. People retire; they accept new positions elsewhere; they go out on medical leave; and they take vacations. (At least, we hope they take vacations!) Your SBA program shouldn’t come to a halt, or even slow down, when this happens.

From the Loan Review Desk

One of the most common themes we see in loan reviews isn’t a technical SBA mistake; it’s an overreliance on institutional knowledge. The strongest SBA departments have experienced experts, documented processes, and regular SBA training for lenders that allow others to step in when needed. 

And that’s not just good risk management; it’s good program management.

Did this tickle your curiosity?

We’re SBA Consultants with decades of combined experience, serving as a trusted lender service provider to lenders across the country.  We help review processes, strengthen SBA compliance, double-check checklists, and provide SBA Lender training to bring your whole team up to speed. Give us a call at 877-576-0819, or drop us a line through our website here.