Board Candidates 2025

NAGGL Board of Directors Election – Terms Beginning January 2026

General Information

The following questions were asked of each nominee in order to determine their stance on current SBA policies and their ideas for setting priorities for the association. Please review each candidate’s responses to help determine whose priorities for the 7(a) program and NAGGL most closely match your own.

    1. If you could make one change in SBA’s 7(a) loan program requirements, what would you change and why?
    2. What are the main weaknesses that you believe the SBA should focus on to improve the performance of the 7(a) loan program?
    3. What would you recommend that NAGGL set as its top priority in its capacity as a representative of lenders and others involved in SBA 7(a) lending?

Lending Institutions  (5 Seats Open, 15 Nominees)

Davina Bergin

President-SBA Lending, Evolve Bank and Trust

Craig Calafati

EVP - Director of Lending, ACC Capital

Jennifer Chiavetta

Senior Credit Officer, Live Oak Bank

Davina Bergin has dedicated her entire 35+ year career to SBA lending, working across community banks, regional banks, and non-bank lenders. She currently serves as President of the SBA Division at a Evolve Bank and Trust a nationwide SBA lender, bringing a well-rounded perspective on how SBA programs support small businesses in diverse financial institutions.

A long-time supporter of NAGGL, Davina has proudly served on the Board for over 20 years and several committees. She is also a graduate of the NAGGL Lender Diploma Program and a past recipient of the SBA Financial Advocate of the Year Award.

Davina remains deeply committed to the mission of SBA lending and the small businesses it serves. Her experience in government relations has reinforced her belief in the importance of strong advocacy to ensure the program’s continued success.

  1. The new rule requiring a seller to personally guarantee the loan for two years if they retain any equity—even just 1%, creates real challenges, especially in industries like construction or those that require professional licensing. Under the old rule, sellers with less than 20% equity weren’t required to guarantee the loan, which gave us more flexibility in structuring deals that made sense for everyone involved.
    In many cases, buyers need the seller to stay on with a small ownership stake so they can operate under the seller’s license beyond the first year. But now, that small piece of equity triggers a personal guarantee, which can be a dealbreaker for sellers who aren’t actively involved in the business anymore.
    This change could make it harder for borrowers to complete transitions smoothly—especially in cases where continuity and licensing are critical. I think going back to the 20% threshold would strike a better balance. It would still protect the SBA’s interests while giving lenders and borrowers the flexibility to structure deals that actually work in the real world.

  2. The SBA has made real progress in updating its technology, but there’s still a long way to go. In a world where everything moves fast, we need systems that can keep up. One clear example is that right now, we’re still working with an SOP that’s essentially a static Word document— only marginally searchable and far from user-friendly. There’s a real opportunity to reimagine how this information is stored, accessed, and navigated.
    Beyond that, there’s room to improve how we handle applications and loan servicing. These aren’t just nice-to-haves, they’re essential if we want to keep the program running smoothly and effectively. My concern is that without continued focus and investment, the SBA could fall behind and that would affect all of us who rely on it to support small businesses.

  3. Serving on the NAGGL board for nearly 20 years doesn’t just mean I’ve been around a while—it’s given me the perspective and experience to truly understand what makes NAGGL essential to our industry. While NAGGL offers valuable services like education and training, its legislative advocacy is the cornerstone of everything we do. SBA lending is a federally funded program, and without strong, consistent advocacy in Washington, the program—and by extension, our ability to serve small businesses—would be at risk. Simply put, without NAGGL’s work on the Hill, the rest wouldn’t matter.

Over the course of his nearly 30-year lending career Craig has led SBA programs for both large and small banks as well as non-profit CDFI’s. He has built programs from the ground up to achieve top 10 national SBA rankings and most recently led his current lender to receive one of the first new SBLC licenses granted in over 40 years. His passion for SBA lending is best reflected in the many successes of those that have worked with him over the years. As a former small business owner, Craig is well aware of the SBA’s ability to positively impact the thousands of small businesses across the U.S. He feels strongly that the integrity of the program is of the utmost importance and is diligent in maintaining the high prudent lending standards that will ensure that the 7a and 504 programs continue to flourish. Craig has been a NAGGL member for over 20 years and would consider it an honor to serve on the NAGGL Board of Directors.

  1. I believe the sweeping changes requiring 100% US citizen or LPR ownership in borrowing entities, though well-intentioned are a bit misguided. Of course, the SBA 7a program, and its US taxpayer backed guaranties, should benefit businesses primarily owned and operated in the United States. However, there are many small businesses located along our northern and southern border area cities that have found it advantageous to invite small, minority ownership in their companies to foreign entities or individuals. This may have been to ensure a continued relationship or to obtain favorable terms in pricing or other considerations. These cross-border relationships only serve to strengthen our international trade positions and further cooperation and understanding across international boundaries that for generations have proven to be of great value to the US economy. They should not be penalized for seeking enhanced stability.

  2. I believe that the SBA should finally implement a nationwide Broker approval program to license and monitor commercial brokers much like the NMLS system that has been in place for years. There are many outstanding commercial brokers whose ethics and operations are above reproach and many would welcome the opportunity to demonstrate their trustworthiness. Unfortunately, we are all constantly made aware of that small minority of individuals who participate in much of the fraudulent activities that have consistently dogged the 7a program. A national registry would bolster the perceived integrity of the Commercial broker community as a whole and allow many lenders to feel more comfortable in their dealings with the broker community as well as greatly reduce the potential for fraudulent submissions to the 7a program.

    Elimination of the compliance review and a return to lender responsibility for the various checks (CAIVRS etc.) would be most welcome. Untold hours and days have been wasted awaiting clearances and addressing erroneous search results.

  3. Continue to advocate for the integrity of the 7a program and further congressional understanding of the disastrous potential associated with the admission of most of the current crop of FinTech’s to the ranks of SBA 7a program lenders. If the PPP program taught us anything it should be that without drastic changes to the basic business model, the admission of most Fintech’s could quickly cause the demise of the 7a program.

Prior to beginning my career in SBA lending, I spent 13 years building and running a company that manufactured ladies’ and children’s clothing. That experience gave me a deep, personal understanding of the risks, sacrifices, and rewards that come with entrepreneurship—and it continues to shape how I approach my work every day.

Nearly ten years ago, I joined Live Oak Bank, where I now serve as a Senior Credit Officer. After two years working as a lender, I transitioned into credit, where I have spent the past eight years. As a former small business owner, I am passionate about helping others succeed and committed to the long-term health and soundness of the SBA loan program. I carry that perspective into every credit decision I make.

I was honored to be in the first class of NAGGL Future Lending Leaders and have spent the past year and a half as a NAGGL instructor, teaching courses in Basic Credit Analysis and Writing the Credit Memo. I have also spent time on Capitol Hill and at the SBA, building relationships and advocating for responsible lending practices that support borrowers and safeguard the program.

I am a proud graduate of the University of North Carolina at Chapel Hill (Go Tarheels!) and bring real-world business experience and a strong analytical foundation to everything I do in support of America’s small businesses.

  1. While I am pleased that SBA reverted back to the trusted rules that help safeguard the program with the 50 10 8 requirements, the current maximum loan limits have not kept pace with increases in the Consumer Price Index and should be raised. I support increasing the maximum loan size of $7.5 million for all industries. While I understand there is a push to increase the limit for manufacturers to $10 million, an across-the-board increase is overdue. Raising these limits would allow borrowers to access more substantial funding through the SBA program, helping them invest in equipment, inventory, and expansion efforts essential to their success.

  2. The reinstatement of lender fees for all loan sizes was a helpful step in protecting the 7(a) loan program by balancing access with risk management. SBA should continue focusing on maintaining the program’s financial sustainability, as it still faces challenges from bad actors seeking to exploit its benefits, which can threaten its integrity and financial health. It is especially important to address lenders who have abused the program, particularly if loan maximums increase. Additionally, streamlining processes through technology and enhancing lender support will further improve the program’s efficiency and overall performance, benefiting both lenders and borrowers.

  3. NAGGL should continue to advocate for strong program integrity measures to protect the 7(a) loan program from abuse while working to get loan maximums increased. This includes encouraging SBA to identify and address bad actors promptly in collaboration with lenders. Additionally, NAGGL should focus on promoting technological advancements that streamline loan processing and reduce administrative burdens for lenders. By pushing for efficient, modernized processes and robust safeguards, NAGGL can help ensure the program remains sustainable, accessible, and effective for both lenders and small businesses.

Ray Drew

SBA Managing Director, Truliant Federal Credit Union

Diane Gallion

SVP SBA Closing & Loan Operations Director, First Womens Bank

Diane Heyden

SVP/Director of SBA Lending, West Coast Community Bank

Like many, Ray Drew fell into SBA lending by chance. Fifteen years later, he continues to eat, sleep, and breathe SBA loans. Known for his original approach to marketing, Ray quickly gained notoriety in the industry. In 2019, he launched The Art of SBA Lending—the first-ever podcast dedicated to SBA lenders—which recently surpassed 100,000 listens. Through the show, he has interviewed over a hundred of the industry’s top minds, fostering thought leadership and collaboration across the SBA lending community.

Ray is managing director of an SBA 7(a) program currently ranked in the top 30 nationally. From 2016 to 2022, Ray served on FLAGGL Board of Directors, including a term as the organization’s Chairman in 2021.

Ray’s mission is simple: to push the SBA industry forward. Whether through media, leadership, or lending, he remains committed to raising the bar and inspiring the next generation of SBA professionals.

Ray lives in South Florida with his wife and young daughter—with one on the way.

  1. Right now, it would have to be the rules surrounding partial change of ownership transactions. It makes no sense that a 1% owner buying into a business must be a coborrower. Furthermore, mandating that a seller to Personally Guarantee the buyer’s loan is commercially unreasonable. Keeping the seller tied to the business mitigates transition risk and should be promoted, not hindered. Finally, I would require an equity injection, despite whether the debt-to-equity ratio is 9:1 or not because buyers need skin in the game. At the end of the day, if the buyer is qualified financially, has the right experience, and putting skin in the game, there’s really no reason a seller needs to PG.

  2. 1. Focus on bad actors. By and large, SBA lenders operate with integrity—but we all know a few shady shops that seem to skate by without consequence. One creative solution could be to put a cap on the amount of guarantees any one organization can repurchase. 2. Improve access to capital for $351,000 – $499,999 loan requests. We need to make these loans more attractive to banks. While I agree the Small Loan program of SOP 50 10 7.1 introduced too much risk into the program, I do think Small Loans should have remained at $500,000—but with mandatory cashflow underwriting. 3. There is a lack of capital access for small business loans in the $5-10 million range. The max 7a loan should be rightsized for inflation. This will bring more sophisticated businesses back into the program, lower the overall default rate, and generate more revenue for the agency.

  3. The industry wants a return to normal. We hit the reset button with SOP 50 10 8 but it was also somewhat of an overcorrection. I would recommend NAGGL use this opportunity to clear the deck and begin advocating for incremental progress. Let’s be the rational ones and use nuanced arguments to influence policy rather than react with emotions. Policy such as banning MCA/Factoring loan refinances, requiring businesses to be 100% owned by US citizens/greencard holders, and banning GP submissions for PLP lenders is not good policy and was rolled out with little-to-no input from the community.

I have been active in the SBA Lending and Banking industry, sharing my knowledge to help the Small Business community. Throughout my career I have help many small business clients to achieve their goals through the 7(a) program. it has been exciting to be a part of the evolution of SBA Lending. Working with the NAGGL team as an instructor and serving on the board of directors has made my life richer for the people we serve in this industry.

My passion for all things SBA and the partnership we have with the US SBA has taught me a great deal and allowed me grow with every SOP. I hope to continue to serve on the NAGGL board to continue to advocate for our lenders and especially our Small Business Clients.

  1. I would improve the clarity and consistency surrounding SBA’s equity requirements, which remain one of the most frequently debated areas of the 7(a)-loan program. Despite the recent change to SOP, there continues to be confusion about what constitutes acceptable sources and documentation of equity, especially in Change of Ownership loans. Clarity is needed to prevent delays in approvals; it creates a friction with loan reviews OCRM and the risk of guaranty purchase. I would ask that SBA provide more detailed scenario-based guidance and standardized documentation expectations to help lenders meet requirements with Confidence. We need to ask for Clear, practical rules in this area as it would reduce uncertainty, improve processing efficiencies and support a greater access to capital for qualified borrowers. undergoing business loan transactions.

  2. I would suggest. #1. Regulatory ambiguity continues to pose challenges to us all. SOP updates often lack practical guidance or implementation tools leading to confusion and inconsistent application. SBA should prioritize clearer communication and take a collaborative approach with lenders when making policy. #2. Operational inefficiencies, including approvals, servicing actions, and guarantee purchases as it creates friction in the lending process and impacts the borrower experience. Finally, the 7(a) Authorization Cap needs to be increased to keep pace with growing demand for America’s small businesses. We continue to see more entrepreneurs torn to the program for reliable access to capital. The SBA and Congress must ensure that lenders have the ability to meet the demand throughout the fiscal year without disruption.

  3. I would ask NAGGL to prioritize advocating for an increase in the annual 7(a) authorization and the Secondary market caps to ensure uninterrupted access to capital for small business nationwide. We all know the demand for SBA lending continues to grow. We need the program to be equipped to meet this demand. Working in parallel NAGGL should continue its strong focus on promoting regulatory clarity and operational efficiencies. This includes working closely with SBA to improve transparency of policy changes, streamline delivery, and reduce the compliance burden on responsible lenders. By championing these priorities, NAGGL will help ensure that the 7(a) program remains accessible, accountable, and responsive to the needs of the small business community.

Diane Heyden brings over 30 years of experience in the financial services industry, with a specialized focus on SBA lending. Throughout her career, she has led nationwide SBA sales initiatives, launched a successful SBA loan origination program, and built high-performing teams of Business Development Officers. Her leadership has consistently driven operational efficiency and strategic growth within the SBA departments she has overseen.

Currently, Heyden serves as the head of SBA Lending at West Coast Community Bank, where she leads efforts across the bank’s four-county service area: Monterey, San Luis Obispo, Santa Clara, and Santa Cruz.

Her commitment to community service includes board membership with the Huntington Beach Educational Foundation and serving as Chair of the Huntington Beach 4th of July Board, a role appointed by the City Council.

Heyden is a graduate of the Pacific Coast Banking School, and an active member of the National Association of Government Guaranteed Lenders (NAGGL). She notably served as Chair of NAGGL’s Small Bank West Committee for five consecutive years.

With her deep industry knowledge, proven leadership, and long-standing dedication to SBA lending, Diane Heyden would be a valuable asset to the NAGGL Board. Her ability to represent the needs of community banks, foster collaboration across institutions, and advocate for practical, forward-thinking SBA policy makes her an ideal candidate to help guide the association’s mission and impact.

  1. Expand Eligibility for Lawful Immigrants
    Why: As of June 2025, individuals with temporary or conditional immigration status (e.g., DACA recipients, conditional green card holders) are ineligible 2. Revisiting this policy could open access to a broader group of entrepreneurs who contribute significantly to the U.S. economy, especially in underserved communities.

  2. 1. Expand Use of Technology for Monitoring and Compliance
    Why: Implementing real-time data analytics and digital reporting tools could help the SBA monitor loan performance more proactively, identify early warning signs, and reduce fraud or misuse of funds. 2. Streamline the Franchise Directory Process. Why: The SBA has reinstated the Franchise Directory to determine eligibility, but the process can be cumbersome. A more dynamic, searchable, and regularly updated digital platform could reduce delays and confusion for lenders and borrowers alike.

  3. Advocate for Balanced Policy Changes
    1. NAGGL should ensure that policy shifts—like the reinstatement of guaranty fees and stricter credit criteria—don’t disproportionately impact small or underserved borrowers. The association can: Push for tiered or flexible fee structures. Recommend alternative credit evaluation tools for thin-file borrowers. Advocate for continued modernization of SBA systems and processes. 2. Support Lenders Through Education and Delegation. With SBA staff reductions, PLP (Preferred Lender Program) participants are being asked to take on more responsibility. NAGGL can: Provide advanced training and resources to help lenders confidently use delegated authority. Facilitate communication between lenders and SBA through initiatives like the new delegated loan support inbox.

Ashley Horner

EVP, SBA Division President, Summit Bank

Catherine Jooyan

SVP/California Sales Manager, U.S. Bank

Sherry Martin

First Vice President – Senior SBA and GA/TN Commercial Team Leader, Citizens Trust Bank

Ashley Horner first joined the NAGGL Board in 2022. She is a seasoned commercial lender who in 2014 established the SBA Division of Summit Bank, a $1.3Billion community business bank headquartered in Eugene, Oregon. Due to the development of a successful SBA Division and significant contributions to the community, Ashley received ICBA’s 2019 Top 40 Under 40 bankers award. Ashley is a graduate of the University of Portland with a Bachelor’s in Business Administration, Finance. She is a graduate of ICBA Commercial Lending Institute and Oregon Bankers Association Executive Development Program. In addition to her leadership roles at Summit and in her community, Ashley has been a leader at the national and regional levels in NAGGL and earning her NAGGL Advanced Lender Diploma in 2017. Ashley enjoys being an instructor for NAGGL focusing on the areas of underwriting and general SOP training. She is the seven-year Chair of the NAGGL Region X Liaison Committee and a four-year chair of the NAGGL Technical Issues Committee.

Ashley enjoys working alongside the nation’s community of SBA lenders and valuable vendors who provide an irreplaceable level of service, knowledge, and innovative problem solving.

  1. The recent updates to the new SBA SOP 50 10 8 are thoughtful, responsive, and reflect a deep understanding of the current lending landscape and needed changes in our program. The SBA has struck the right balance between accessibility for small businesses and risk management for lenders. These changes simplify processes, enhance efficiency, and provide much-needed clarity for both borrowers and lenders. Right now, our focus should be on implementation, supporting our institutions, training our teams and ensuring consistent applicants across the industry. The groundwork has been laid; now it is time to execute.

  2. As I seek reelection to the NAGGL Board of Directors, I remain committed to strengthening the SBA 7(a) program. While the program continues to serve small businesses well, one key weakness persists: the lack of transparency around defaulted loans. Lenders often operate without timely or consistent access to data on why loans fail, which limits our ability to learn from past defaults and improve credit decisions. Greater visibility into trends, causes, and recovery outcomes would help the entire lending community strengthen underwriting practices and better manage risk. Transparency is essential – not to assign blame, but to support smarter more sustainable lending across the industry.

  3. As a candidate for the NAGGL Board, my top recommendation is for NAGGL to continue to prioritize strengthening relationships with our colleagues inside the SBA. The most effective way to influence the future direction of the 7(a) program is through strong, collaborative partnerships. By building deep trust and open communication with SBA leadership and staff, we can ensure that lender perspectives are heard early and often to shape policies that are both practical and impactful. A more unified relationship will help us co-create solutions that serve small businesses while protecting the integrity of the program.

Catherine Jooyan, a native Californian, is Senior Vice President at U.S. Bank, leading SBA lending across California. She oversees a team dedicated to helping small businesses access SBA financing to grow and succeed.

With over 40 years in banking, Catherine has held executive roles at a community bank and served on the NAGGL board. She was recognized as one of Los Angeles’ Top Women in Banking in 2019 and 2020. Throughout her career, she has helped thousands of small businesses secure critical funding and is a strong advocate for financial literacy and mentorship.

Catherine is also deeply committed to community service. She served as a Girl Scout Leader for 14 years, empowering young girls with financial knowledge and leadership skills. She has also worked with food banks and other nonprofits to support underserved communities.

  1. The SBA’s recent shift back to a more conservative lending approach in its SOP is a positive step toward ensuring the long-term sustainability of the program. With this foundation in place, the SBA should now consider increasing the maximum loan amount for 7(a) loans beyond the current $5 million cap to better support growing small businesses. Additionally, recent changes affecting small and express loans—such as the unexpected requirement for personal financial statements—pose challenges for digital lending platforms. These new requirements significantly differ from previous SOPs and were implemented without prior notice, making it difficult to maintain streamlined, tech-enabled processes. Greater clarity and consistency would benefit both lenders and borrowers.

  2. I feel improving communication, transparency and lead time for SOP updates would allow lenders to adapt systems and train staff. This change alone would improve performance by letting lenders get up to speed to enabling them to structure loans properly while meeting borrower needs.

  3. Continue engaging with the SBA as actively as before, ensuring they understand the real-world impact of rapid policy changes. It’s critical that the SBA recognizes how sudden shifts affect banks, internal processes, and—most importantly—borrowers. A key example is the recent, unannounced requirement for personal financial statements on Express and Small Loans. Changes like this can disrupt digital workflows and create confusion for both lenders and applicants. Clear communication and thoughtful implementation are essential.

Sherry is a leader in SBA lending, a passionate small business advocate, and a trusted advisor with over 20 years of experience. She currently serves as First Vice President, Senior SBA and GA/TN Commercial Team Leader at Citizens Trust Bank, where she established and leads the SBA department while managing commercial lending across Georgia and Tennessee. Previously, Sherry held senior leadership roles at SBA Complete and Georgia Primary Bank, where she directed SBA lending and led the implementation of the Paycheck Protection Program. Her expertise in SBA/USDA lending has helped hundreds of businesses access capital, create jobs, and strengthen local economies.

Sherry served on the NAGGL Board of Directors, chairs the Small Lender East and Public Policy Committees, and is a two-time SBA Financial Services Champion of the Year for Georgia. She also chairs the Invest Atlanta Loan Committee and the Georgia Lenders Quality Circle, where she received the first-ever Lifetime Commitment Award.

A proud alumna of Clark Atlanta University, Sherry is a member of Alpha Kappa Alpha Sorority, Inc., and a former U.S. House of Representatives Page. She was born in Greenwood, SC, and is the proud mother of her son, Jalen.

  1. There are several important changes needed to strengthen and modernize the SBA 7(a) loan program, but to help level the playing field, especially for community banks (without robust software) and underserved borrowers, I would start with digital automation. The current loan process is often inefficient and inconsistent, creating unnecessary barriers for lenders and small businesses alike.

    Implementing a streamlined, technology-driven platform with uniform documentation standards would significantly reduce processing times, eliminate ambiguity, and improve the borrower experience. It would also allow lenders to focus more on supporting entrepreneurs and less on navigating disclosures, forms, affidavits, etc.

    As someone who has built SBA departments, led PPP implementation, and served on both the NAGGL Board and public policy committees, I understand the operational challenges community banks face. This change would empower community banks to expand their reach, increase participation in the program, and ensure that the 7(a) program remains a responsive, inclusive, and effective tool for small business growth.

  2. Training and inconsistent messaging are two key weaknesses that continue to hinder the performance of the SBA 7(a) loan program. Each year, SBA District Offices bring on new lenders, many of whom are not equipped with the knowledge or heart required to navigate the complexities of SBA lending. Without comprehensive, ongoing training, these lenders often struggle to build sustainable programs. We see this most in rural and underserved areas, leaving significant gaps in access to capital for small businesses.

    Equally important is the issue of inconsistent messaging. The 7(a) program is a powerful tool, yet its value is often lost in translation due to unclear, fragmented, communication and numerous policy changes. Many lenders and borrowers remain hesitant to engage with the program simply because they don’t fully understand it. The visibility gained during the Paycheck Protection Program created a unique opportunity, and SBA should use that to deliver a clear, consistent message that demystifies the program and builds trust.

  3. NAGGL’s top priority should be to ensure that the SBA 7(a) loan program remains accessible, equitable, and clearly understood by all stakeholders. As the voice of lenders and industry professionals, NAGGL must be vocal and unwavering in its message that the 7(a) program is open to all eligible businesses and entrepreneurs—regardless of geography, industry, sex, race, background, etc. This is especially critical in today’s environment, where misinformation and inconsistent messaging can discourage participation from underserved communities.

    Equally important, NAGGL must not let up on its advocacy efforts. The policy landscape is constantly evolving, and it is essential that NAGGL continues to lead with a strong, unified voice that pushes for clarity, consistency, and modernization from SBA. This includes advocating for streamlined processes, equitable access, and support for community banks and mission-based lenders. NAGGL has and continues to shape the future of SBA lending, and its top priority must be ensuring that the 7(a) program truly serves all who are eligible to benefit from it.

Annemarie Murphy

SEVP, Chief Lending Officer, First Bank of the Lake

Charles Rho

President, VelocitySBA

Rachel Russell

Lender Services Director, B:Side Capital

Annemarie Murphy is SEVP, Chief Lending Officer for First Bank of the Lake, where she is accountable for the success of all lending programs. She directs all facets with responsibility for strategic planning, risk management, product definition, training, and team leadership. Murphy is also responsible for ensuring compliance with the bank’s credit and regulatory policies. With more than two decades of multiple roles within banking and the government guaranteed industry, she is an expert in driving positive outcomes in commercial banking operations, team leadership, process improvement, business development, risk management, and project management. One of her notable achievements includes successfully launching a Veterans Initiative Team to target lending activities to our nation’s veterans. Additionally, she has played a crucial role in advocating for small businesses in Congress including testifying before the Senate Small Business Committee. Murphy currently serves on the Board of FBOL Bancshares and the National Association of Government Guaranteed Lenders (NAGGL). Additional NAGGL activities include Executive Board, Public Policy committee, chairing the Large Lender Committee and serving as a NAGGL Instructor. Murphy has won several industry awards which include SBA Financial Services Champion, NAGGL Instructor of the Year as well as NAGGL’s Distinguished Service Award.

  1. In SOP 50 10 8, the small loan limit was lowered to $350,000 and I would restore it to $500,000. Adjusted for inflation, restoring the limit to at least $500,000 is simply keeping pace with economic realities. The costs to launch or expand a small business—inventory, equipment, leasing, payroll, technology, and compliance—have all increased.

    The small loan designation comes with simplified documentation, expedited approvals, and reduced administrative burden for lenders and can serve a broader segment of the market more efficiently, reducing time and costs associated with loan origination and processing.

    Industry data has shown similar default and repayment rates for SBA loans in the $350,000 to $500,000 range compared to those below $350,000. There is no strong evidence suggesting an increased risk profile for loans within this higher tier.

    Lenders are subject to rigorous underwriting standards regardless of loan size. Increasing the small loan limit does not equate to a lowering of prudent lending practices or oversight but instead allows well-qualified businesses access to more appropriate levels of capital.

    Allowing more loans in the higher small loan bracket also can help lenders diversify portfolios, potentially reducing concentration risk and benefiting overall loan program stability.

  2. The SBA 7(a) loan program remains one of the most popular loan products for changes of ownership and whether through full or partial acquisition—these transactions have become more complex and present unique risks. They often involve multiple investors and intricate capital structures, with the equity injection forming a vital component of risk protection for the lender.

    Currently, personal guarantees are typically required from any owner with a 20% or greater ownership in the business. However, in the context of changes of ownership, some contributors to the equity injection may not become direct owners or may structure their ownership in a way that limits their liability, potentially misaligning their interests with that of the business and lender. In cases where one party provides a large portion of the equity but does not assume operational control or a shareholder position, there is a structural incentive to prioritize short-term gains over long-term business success and loan repayment.

    By instituting a rule that any person or entity contributing more than 50% of the required equity injection must provide a limited personal guarantee, the SBA can level the playing field amongst the lenders, reduce default rates, and reinforce a culture of shared responsibility.

  3. The current administration has proposed an increase to $10 million for manufacturing while leaving all other NAICS codes at the $5 million 7(a) loan limit. I would recommend that NAGGL prioritize the proposed 7(a) loan increase for manufacturers, as well as an increase to $7.5 million for non-manufacturing industries.

    In 2010, as part of the Small Business Jobs Act, the SBA 7(a) loan limit was last raised and since then, inflation has affected not only real estate values and construction costs, but also equipment prices, payroll, and working capital needs. By raising the limit to $7.5 million for all borrowers, the program would more accurately reflect current economic conditions.

    With the increase in the maximum loan size, these loans will require a more intensive analysis and enhanced underwriting practices. To safeguard the program’s integrity and minimize defaults, more rigorous underwriting guidelines will be needed to manage the comprehensive risk assessments required for the complexities of larger loan transactions.

    Raising the SBA 7(a) loan limit to $7.5 million is a justified response to the realities of inflation and the evolving needs of small businesses while implementing more robust and intensive underwriting standards is crucial to ensure the longevity of the program.

Charles Rho is an accomplished business development and corporate strategy executive with over 30 years of progressive leadership experience with Fortune 300 and startup companies. He specializes in building and implementing strategic plans for new business platforms in the financial services sector.

Charles joined VelocitySBA in 2017 as President to launch a nationwide 7a lending unit under the SBA’s Small Business Lending Company charter. Today, VelocitySBA, is a top 40 7a lender and continues to execute on its growth strategy through strong leadership team, expanding lending footprint, new product capability and efficient loan processing by a dedicated staffed focused on customer experience.

Prior to joining VelocitySBA in 2017, Charles had a successful 18-year career at GE Capital (GEC) where he launched new businesses/product lines, managed GEC’s secondary market group, the capital markets group and was part of the M&A team with the corporate strategy unit. Charles closed over $8 billion in SBA 7a & 504 commercial real estate loans/pools, M&A and leveraged finance transactions. In 2002, Charles was one of 50 managers selected globally by GE Capital’s management for their future leadership program.

In addition to building businesses, Charles is passionate about mentoring young leaders and fostering talent. In 2014, Charles joined CBRE Capital Markets group and in 2015 founded CBRE’s Asian American affinity group called CBRE Asian Pacific American Forum (APAF). He served as Founder and appointed nine (9) regional leaders to lead CBRE APAF nationally.

  1. Increase the maximum loan amount to assist small business seeking loans in the $5-$10 million range. The current $5 million cap was last increased in 2010, inflation and rising real estate, construction and heavy equipment costs have made that ceiling less impactful especially for high growth companies in manufacturing, tech or logistics who may need larger capital investments. High growth small companies can fund expansions that ultimately result in greater job creation and reduce reliance on venture capital or less favorable private funding options.

  2. SBA relies heavily on delegated authority lenders to underwrite and service loans. While this streamlines loan processing, it also creates oversight gaps that can lead to inconsistent underwriting standards, loose underwriting standards, overexposure to higher risk loans and fraud. Instituting uniform standards for oversight and routine/consistent oversight should be implemented to promote and strengthen lender controls.

  3. Using SBA loan data strategically to improve the 7a program’s effectiveness, equity and efficiency. SBA collects wealth of data, including borrower demographics, loan performance, geography, industry codes and lender activity but much of the data is underutilized for program optimization. My recommendation for NAGGL is to work jointly with SBA and other agencies to leverage loan data to assist lenders to 1. improve loan performance, 2. identify underserved areas and 3. enhance lending parameters. Regularly release anonymized data to lenders and policymakers to refine and improve 7a loan program.

Rachel Russell is a passionate and experienced advocate for small businesses, currently running for a seat on the NAGGL Board of Directors. Rachel serves as a key leader at B:Side Capital, a mission-driven nonprofit Lender Service Provider (LSP) and Certified Development Company (CDC) that is deeply committed to expanding access to capital for underserved businesses and communities. B:Side Capital’s mission focuses on fostering economic opportunity by delivering innovative, high-quality lending solutions that fuel business growth and strengthen local economies.

Since entering the SBA lending space in 2010, Rachel has dedicated her career to facilitating economic development through responsible small business financing. Over the past 15 years, she and her team have facilitated over 1,000 7(a) loans, directly supporting the success and sustainability of businesses across various industries.

Rachel brings a distinctive and valuable perspective that would enrich the NAGGL Board. She is deeply attuned to the challenges and opportunities facing lenders committed to both fiscal responsibility and community impact, having over 50 banking partners, mostly community banks. Her insights into the unique role that various lenders play in the SBA ecosystem would help ensure that the diverse voices and needs of community organizations are well represented in national advocacy and policy discussions.

Rachel’s candidacy reflects her commitment to advancing SBA lending practices that promote inclusive access to capital, responsible stewardship, and sustained economic growth for all communities.

  1. If given the opportunity to implement one change, I would focus on enhancing lending opportunities for veterans. Veterans and their spouses deserve distinct program enhancements that not only provide fee relief for borrowers but also meaningfully incentivize lenders to originate these loans. I believe loans to veterans or their spouses should benefit from a higher SBA guarantee percentage, helping to reduce lender risk and promote greater access to capital.

    Additionally, it is essential that the definition of veteran-owned be consistent across all SBA programs. For example, under the 504 program, spouses of veterans are not currently recognized as part of a veteran-owned business, a disparity that should be corrected. The process of verifying veteran status should also be streamlined, with the SBA assuming responsibility for status verification during compliance checks, rather than placing the burden of documentation on the borrower.

    As outlined in 13 CFR 120.105, special consideration is warranted for this population. I am deeply committed to advancing policies that better support veteran-owned small businesses efforts that would create meaningful ripple effects throughout our economy and deliver lasting benefits to the veteran community.

  2. I believe the SBA can enhance its performance in customer service and response times for loans in liquidation. Currently, communication is often repetitive, wait times are lengthy, and there is little clarity about where a loan stands in the queue or review process. Providing greater transparency and clearer guidance would be highly valuable, helping to build confidence among lenders, especially those who do not navigate this process frequently.

  3. If the lending community and Congress move forward with doubling the maximum loan size under 7(a), it is essential to also re-evaluate other maximum thresholds within the SBA program. I would recommend that NAGGL lead an initiative to systematically review and update all SBA maximum thresholds to reflect inflation and current market conditions.

    Examples of thresholds that merit reconsideration include: the litigation expense limits requiring SBA approval, the recoverable value threshold for collateral abandonment, the minimum construction contingency percentage, and the cap on packaging fee documentation, among others. A comprehensive reassessment would help ensure these limits remain relevant and supportive of today’s lending environment.

Gary Taylor

CEO, ReadyCap Lending

Michele L. Vervlied

Director of SBA Lending, Customers Bank

Kathryn Walker

SVP/Director of SBA and USDA Lending, First United Bank & Trust

Gary Taylor has served as Chief Executive Officer of ReadyCap Lending, LLC (ReadyCap), the leading non-bank SBA 7(a) lender, since May 2024. In this capacity he prioritizes sustainable growth and robust internal controls.
Commencing 2019, Mr. Taylor assumed the role of Chief Operating Officer of Ready Capital Corporation a publicly traded company specializing in small business lending and commercial real estate finance.

Based on his extensive experience, including senior positions with CIT Bank, Lehman Brothers and Newtek Small Business Lending, he was assigned executive level oversight of SBA lending operations working closely ReadyCap leadership.

Earlier in his career, Gary held increasingly senior credit and operations roles at Chase Manhattan Bank, AT&T Capital and Moody’s Investors Service.

Mr. Taylor earned a degree from the School of Business & Industry at Florida A&M University and completed the Credit Development Program at Chase Manhattan Bank.

Throughout his career, Mr. Taylor has actively contributed to various non-profit organizations as a board member, with particular focus on the arts and community development.

A long time resident of northern New Jersey, Gary is married with two adult children.

  1. SOP 50 10 8 states as it applies to Small Loans that For loans greater than $50,000, when 50% or more of the loan proceeds will be used for working capital, Lender must explain in its credit memorandum why this level of working capital is necessary and appropriate for the subject business. Under this requirement, a $350,000 loan with $171,500 allocated to working capital apparently would not explicitly require a clear explanation. I would revise this clause to include a $100,000 trigger for working capital explanation regardless of percentage. This change would limit the risk of Small Loans with excessive working capital.

  2. I believe that the SBA should align guarantee percentages with actual risk, rather than as a tool to encourage certain loan types. Offering higher guarantees for riskier loans encourages lenders to take greater risks, increasing the SBA’s exposure. Guarantee levels should instead reflect risk to minimize losses, boost net yield and promote a zero subsidy. This might entail utilizing Redwood scores on the front-end to establish guarantee percentages.

  3. As a top priority, I would recommend that NAGGL work with the SBA to streamline its operations, especially as staff has been reduced while new responsibilities, including student loans are added. This has led to slower response times. For example, requests by some lenders for approval of securitizations and other secondary market activities have been delayed. NAGGL should provide guidance to the SBA on potential elimination of ancillary products that consume more of SBA’s scarce resources than justified by actual value provided to small businesses.

With more than 30 years of experience in SBA programs, small business lending, and regulatory strategy, I have led high-impact SBA initiatives across sales, credit, operations, and program development. Throughout my career, my mission has remained clear: to expand access to capital for small businesses while ensuring the long-term sustainability of the SBA lending ecosystem.

At Customers Bank, I lead the SBA Lending division, building a high-performing, compliant, and mission-driven platform that delivers meaningful outcomes for small business clients. Simultaneously, I served as the inaugural Managing Director of the Regulatory Excellence Office for 10 months, reinforcing my commitment to sound regulatory governance.

My work bridges strategy, business development and credit risk with regulatory compliance, creating a balanced approach that supports prudent growth. I’m deeply committed to scaling SBA lending programs responsibly—broadening access to underserved markets while protecting the integrity and future viability of the program.

As an engaged member of the SBA community, I have served NAGGL in various roles, including as a presenter, facilitator, past Technical Issues Committee member, and current Large Lender as well as Region 2 Committee member. My continued involvement reflects a long-standing dedication to shaping policy and practice that strengthen the SBA framework.

  1. If I could make one change to the SBA’s 7(a) loan program requirements, I would increase the maximum loan size beyond the current $5 million limit, with enhanced credit parameters. This cap has remained unchanged for years, and limits SBA financing for those businesses that are in the next stage of their growth cycle. For many businesses—particularly those in capital-intensive sectors like manufacturing, healthcare, logistics, and technology—the $5 million ceiling can be a barrier to growth.

    By raising the loan limit, the SBA would better align its program with the current economic environment and the evolving needs of small businesses. A larger maximum loan amount would allow business owners to make substantial investments in infrastructure, new technology, or multi-location scaling, all of which drive local and national economic development.

    Importantly, enabling access to SBA financing for these mature businesses would also enhance the overall performance of the SBA loan portfolio. These companies usually have solid financials, steady cash flows, and skilled management, resulting in lower default risk and better long-term results. By attracting more well-established borrowers, the SBA could build a stronger, more resilient loan portfolio while continuing to support its mission of expanding access to affordable capital.

  2. One of the key weaknesses the SBA should address to improve the 7(a) loan program’s performance is the lack of risk-based credit differentiation. With access to extensive portfolio data, the SBA can identify loan types, industries, and structures that consistently show higher default rates—particularly within the first 24–36 months of origination. Yet, current program standards apply broadly across only two loan size categories, without adjusting for specific risk profiles.

    To strengthen the program, the SBA should implement a data-driven, risk-based approach to credit parameters. This should include stricter underwriting standards for larger loan sizes, where potential losses pose greater risk to the portfolio—especially if the maximum loan limit is increased. Tighter requirements should also apply to high-risk transactions such as change-of-ownership deals with minimal equity injection, start-ups in volatile sectors, or loans lacking sufficient collateral.

    By refining credit standards using its own data, the SBA can reduce early defaults and enhance long-term portfolio health, while still preserving the program’s flexibility. This approach ensures more effective risk management, protects the integrity of the 7(a) program, and enables lenders to continue supporting small businesses that demonstrate strong fundamentals and the potential for sustainable growth.

  3. NAGGL’s top priority should be advocating for the sustainable growth of the SBA 7(a) loan program by promoting a balanced approach that expands access to capital while preserving program integrity. This includes supporting initiatives that help all lenders—large and small—scale their SBA operations, with particular emphasis on making small-dollar SBA loans more accessible and economically feasible to deliver. Simplifying and streamlining processes for smaller loans—such as reduced documentation, and technology-enabled solutions—can help reach underserved businesses without compromising prudent lending standards.

    At the same time, NAGGL should champion policies that ensure the long-term viability of the SBA program, including risk-based credit parameters that reflect actual portfolio performance. This means encouraging the SBA to tailor its requirements based on transaction type, collateral, industry, and loan size, allowing for smarter risk management and more targeted oversight.

    Additionally, NAGGL should continue to serve as a bridge between lenders and SBA leadership—ensuring that lender voices are heard, program improvements are collaborative, and that innovation is supported while compliance expectations remain clear and achievable. By focusing on these priorities, NAGGL can help foster a more inclusive, efficient, and resilient 7(a) lending environment that continues to empower small businesses.

Kathryn Walker has been in the SBA lending industry for over 31 years. She began as a credit analyst and was promoted to SBA Director within 3 years. In this role at a $100 million bank, she gained hands on experience in all areas of the SBA lending process from origination to liquidation. Kathryn has managed the SBA lending divisions for 5 banks and established the divisions at 2 of these banks. She was also self-employed for 10 years and provided SBA consulting and contract services to various SBA lenders. Kathryn serves on the NAGGL Region VI Committee and the NAGGL Technical Issues Committee. She is currently in her third year as a mentor for the NAGGL Future Lending Leaders (FLL) program and is passionate about developing the talent of our next generation of SBA leaders. Kathryn is a board member of a Certified Development Company. She served on the Texas Bankers Association Bank Leadership Council for 3 years. Kathryn holds a BBA degree in Finance and an MBA. She is also a graduate of the Stagen Foundational Leadership Program and the Stagen Integral Leadership Program.

  1. If I were to make one change to the 7(a) Loan Program, I would increase the maximum loan size to $10 million. Throughout my career, I have originated many large dollar loans through the USDA Rural Development Business & Industrial Loan Program and the SBA 504 Loan Program. I have found that large loan borrowers typically have more stability and provide strength to a loan portfolio. I would recommend having stricter underwriting guidelines for the large loans, such as a maximum collateral shortfall amount to limit potential losses and negative impact to the program. The guaranty fees collected on the large loans would also potentially allow for a fee reduction or waiver for smaller loans which would allow the SBA to better serve the smallest businesses, which is a core mission of the program.

  2. I believe that SBA should continue to focus its efforts on prudent underwriting requirements, lender education, and lender oversight to ensure the 7(a) Loan Program is available for generations of small business owners to come. Protecting the integrity of the program is critical to allowing it to meet its mission of maintaining and strengthening the nation’s economy.

  3. I view Government Relations as the number one priority for NAGGL. Historically the organization has done an excellent job in serving its members through advocacy. Continuing to listen to the needs and opinions of its members, maintaining the relationship between the industry and lawmakers, and serving as the voice of the 7(a) industry is the primary role of the organization in my opinion.

Associate Member Category (1 Seat Open, 8 Nominees)

Mark Ahern

President, AMP Business Valuations

Jeffrey Anspach

President, Focus Lenders Services Group

Dustin Baker

CEO, Shatterbox

Mark Ahern brings a unique blend of lending expertise and credentialed business valuation experience to his work with small business owners and lenders. A Certified Valuation Analyst (CVA) and Master Analyst in Financial Forensics (MAFF), Mark leads AMP Business Valuations, where he specializes in delivering SBA-compliant valuations that support 7(a) loan transactions, business acquisitions, and strategic transitions.

Mark began his career as a commercial loan officer, where he structured and closed numerous SBA 7(a) loans across diverse industries. This front-line experience, combined with his valuation practice, has made him a trusted advisor to both lenders and borrowers navigating the SBA process. He is passionate about helping entrepreneurs understand the true value of their businesses and leveraging the 7(a) program to fuel growth and opportunity.

Mark holds an MBA from DePaul University and is deeply committed to the small business community. He believes that effective SBA lending hinges on strong partnerships, sound underwriting, and clear communication—principles he applies in every engagement.

As a board candidate for NAGGL associate membership, Mark is eager to contribute his technical insight, practical lending background, and deep respect for small business to help advance the organization’s mission and support the lending community nationwide.

  1. I believe greater transparency in small business transactions—particularly around customer concentration and working capital sufficiency—is critical to improving loan quality and borrower outcomes. These two factors are often overlooked or misunderstood during underwriting and valuation, yet they have a profound impact on post-closing business performance and loan repayment. By promoting transparency and consistency in how these metrics are analyzed and documented, we can reduce default risk, support better credit decisions, and enhance the long-term success of the 7(a) program.

  2. In today’s competitive lending environment, there is increasing pressure to close SBA 7(a) transactions quickly. While efficiency is important, I believe this movement toward speed has, at times, come at the expense of sound underwriting and thoughtful deal structuring. Rushed closings can lead to insufficient scrutiny of critical risk factors—such as volatile earnings, unrealistic projections, thin working capital, or weak deal terms that do not align with the long-term viability of the business. As a valuation expert and former lender who earned stripes during the financial crisis, I’ve witnessed how front-end shortcuts can result in downstream issues for both borrowers and lenders, including early loan defaults and post-close regret. I believe NAGGL should continue advocating for a balanced approach that supports timely closings without sacrificing the rigor and integrity that protect the program. Encouraging best practices in underwriting and elevating deal structure standards—especially in change-of-ownership loans—will strengthen the SBA lending ecosystem and ensure the 7(a) program delivers lasting value to small business borrowers.

  3. NAGGL should continue advocating for more consistent and actionable SOP guidance in light of the new SOP. Additionally, NAGGL should work to create more pathways for existing borrowers to communicate with their loan servicer. Too often I hear about borrowers trying for months to find a point of contact at the SBA (or their servicer) to discuss important details about their loan. Open communication between borrowers and servicers will lead to better outcomes.

Jeffrey L. Anspach, CPA, CGMA, CGMA, FVS, has over forty years of experience as a practicing Certified Public Accountant and entrepreneur. Mr. Anspach has been involved in merger and acquisition work, business valuations, turnaround management, litigation support, and field examinations for asset-based and SBA lenders throughout his career. Having owned interests in over twenty companies internationally with borrowings from lending institutions, Mr. Anspach has broad-based expertise in this area. As the principal in the Focus Lenders Services Group, LLC® in both the United States and Canada, he brings his acquired skills to assisting lenders in crucial investigations and decision-making in the SBA marketplace. He has spoken internationally as an expert on Due Diligence and SBA Business Valuations. Mr. Anspach has been active with the National Association of Government Guaranteed Lenders, Commercial Finance Association, Association of Certified Fraud Examiners, Association of Corporate Growth, The Turnaround Management Association, the American Institute of Certified Public Accountants, the Michigan Association of Certified Public Accountants, and the Ohio Society of Certified Public Accountants. Mr. Anspach is licensed as a CPA by the boards of Certified Public Accountants in the states of California, Florida, Michigan, and Ohio. Mr. Anspach also holds the designation as Forensic Certified Public Accountant, is a Chartered Global Management Accountant, and has been admitted to the Forensic and Valuation Division of the AICPA. Mr. Anspach has recently been recognized by the AICPA as an Honorary member for Life and has also been recognized by the Michigan Association of Certified Public Accountants as a Fellow. With the unique background that Mr. Anspach has accumulated, he has been able to provide many NAGGL members with his services and would bring knowledge to the NAGGL board not previously experienced.

  1. With the requirement of obtaining Business Valuations, the SBA should be more specific as to who requests these reports within the lender’s organization. The requests should be made by underwriters, closers and other employees making decisions as to credit worthiness of the loan and not any individual in the business development area of the Bank. This is very crucial to be certain that the Appraiser and the Valuation requester are completely independent of each other and there is never a conflict of interest.

  2. There should be very close coordination and monitoring between all of the SBA programs including 7(a) loans, PPP loans and EDIL loans to be certain that no duplications exist in subordinations, collateral, funding, personal guarantees, etc.

  3. NAGGL should act as an advocate not only for SBA Lenders but also small business borrowers that its members maintain as customers. Also, NAGGL should not fall into the political divide that is appearing in different geographical areas of our Country.

Like anyone I’ve ever met in SBA, I entered the industry through the side door. For me, that was NAGGL, where I spent the first 5 years of my career. What started as a job to support my wife during her Master’s became a 25-year love affair with this industry that punches way above its weight. I’ve done many things in my career–SBA industry advocacy, staffing, talent management, and training. I’ve helped large national lenders and one branch community banks build programs. I even created The SBA Roadshow to celebrate the story of how our industry put the U.S. economy on its back and carried it through the pandemic. I’ve built two companies–Baker Lewis and Shatterbox, funding the startup of the latter with a 7(a) loan. I understand unequivocally the importance of our industry’s work. That’s what I want to serve on the NAGGL Board to protect.

I’ve never witnessed change in our industry happen faster than in the last four years. From fintechs to AI–we can’t stop it, but we CAN lead. We can anticipate what’s coming and demonstrate thought leadership that DIRECTS the dialog about how things change. Proactive, not reactive. Smart offense, not bad defense.

To learn more, please visit bakerfornaggl.com

  1. I would change the recent rule requiring 100% of beneficial owners to be U.S. citizens. But more to the point, I would aim to depoliticize our program wherever possible. As the U.S. political climate becomes increasingly polarized, our program has too often been leveraged for political posturing, with actions shaped to reflect the priorities of one party or the other, but not necessarily serving the best interest of the 7(a) loan program and its long term sustainability. This trend has been especially pronounced under the last two Administrations, resulting in considerable program disruption. Results of this have included both accelerated loan losses (SOP 5O-10-7) and the exclusion of historically eligible customers from financing (SOP 50-10-8). Changes that encourage modernization are essential, overdue, and welcome–our program won’t thrive by resisting change–but we should passionately oppose the politicization of our program wherever we can.

  2. We must strengthen accountability for institutions that consistently misuse the program. These lenders drive up operational costs for all lenders and threaten the 7(a) program’s long-term viability. Specifically, lenders with performance metrics that fall significantly below those of their peers should face different cost structures to maintain participation. If poor practices persist, they should be removed from the program entirely. It’s unfair for responsible program participants to foot the bill for those who routinely operate on the margins.

    We should also pursue greater accountability for individual lenders and loan brokers whose loan performance consistently lags behind industry benchmarks.

  3. In a word, NAGGL’s top priority must be INFLUENCE. NAGGL’s directive has always been, and should remain, the long term viability and sustainability of the 7(a) loan program. It’s impossible to imagine what the last 4 decades of the U.S. economy would look like without a robust 7(a) loan program. How many jobs wouldn’t exist? How many successful entrepreneurs would never have been able to begin their journey? So, we must protect the program. That almost certainly means that our program will not innovate at the pace of Silicon Valley or Wall Street. But it is foolish to think that Silicon Valley and Wall Street don’t have influence in how–and how quickly–our program evolves.

    INFLUENCE means that NAGGL must maintain a seat at the table where these conversations are taking place. This means leveraging the partnerships that the association has worked for 4 decades to build. But it also means building new partnerships, and maintaining a vigilant awareness of who else is seeking to influence how our program evolves. The entrepreneurs who depend on SBA financing deserve no less.

Derek Ezovski

President, Outsourced Risk Management Solutions LLC (ORMS)

Ryan Hutchins

President, Ampleo Valuation Services DBA Peak Business Valuation

Shay Kleinschmidt

VP of Lending, FranFund

Derek Ezovski has been involved with the 7a program as a property due diligence professional currently specializing in environmental due diligence for over 25 years and have been an active participant with 7a lenders and other NAGGL issues throughout that time. Derek won the inaugural Industry Solutions award from NAGGL in November 2024 and he has continually maintained an active role not only regarding my company but also for the industry as a whole. Derek is very focused on making sure the 7a industry continues to thrive but also making sure the program remains sustainable by utilizing vendors that are committed not only to business development but also the health of NAGGL and the 7a industry by supporting the SBA.

Overall, Derek has been involved in the 7a and 504 industry and maintains excellent relationships with the SBA, as well as lenders and borrowers which ensures that we are invested in the SBA and are able to provide independent feedback to the SBA from the front lines on topics that aren’t always well known within the industry. Derek won the inaugural Industry Solutions award from NAGGL in November 2024 and he has continually maintained an active role not only regarding my company but also for the industry as a whole. He is often asked to speak at conferences and webinars about environmental due diligence changes and best practices with SBA and is interested in representing the 7a industry and its affiliates as a NAGGL board member.

  1. As of today, I would encourage SBA to focus more resources on OCRM and oversight so that more tasks could efficiently be delegated to lenders, while also managing risk. However, in the recent past, that delegation was not coupled with proper guard rails and oversight so lenders could have extended themselves and the 7a program beyond what it should have and now is threatening the zero subsidy and thus the overall program. By providing more resources for oversight to ensure the PLP lenders are doing their role correctly and managing risk properly on behalf of the SBA, it would allow more tasks to be performed by lenders vs. internally by the SBA. Improving technology to help with this would also be an effective way to help streamline the program while maintaining proper risk management.

  2. There currently isn’t a way to ensure outside vendors that 7a lenders are using are up to speed with SBA requirements and vested in the industry. With the SBA moving to delegate more and more processes to the lenders, it is critical to have good, invested vendors to make sure the government and the guarantees are protected while providing lenders more flexibility by delegating the process. Having the voice of the affiliates that support the SBA program is an important perspective that should be heard.

    Improving the resources for OCRM would also allow the program to continue to grow but also follow the rules of the program to not negatively affect the long term future of the 7a program.

  3. Protect the zero subsidy so it continues to be in place to ensure a strong future of the 7a program to benefit small businesses and the industry as a whole. Making sure all 7a lenders are strictly following SOP 50 10 8 is critical to ensure that all participants are helping small businesses but by also making sure the underwriting is done per the SOP which will sustain the program.

    As a fellow small business that has worked hard to establish a solid business and reputation in this industry, it would be devastating to see the program be negatively affected by poor players in the industry.

Ryan Hutchins is the founder and managing director of Peak Business Valuation, a nationally recognized firm specializing in business valuations and machinery & equipment appraisals for privately held companies. With credentials from the American Society of Appraisers (AM), the AICPA (ABV), and the NEBB Institute (CMEA), Ryan brings deep technical expertise and practical insight to every engagement. Since 2015, he has led over 5,000 valuation assignments supporting SBA lending, mergers and acquisitions, financial reporting, and litigation.

Ryan is known for his sharp analytical skills, clear communication, and commitment to high professional standards. He works closely with business owners, attorneys, accountants, and lenders to provide objective, reliable valuations. Under his leadership, Peak Business Valuation has become a trusted partner for small business transactions across the country.

In addition to client work, Ryan writes and speaks regularly on valuation topics, helping educate the next generation of professionals and demystify valuation for the broader business community.

  1. A significant number of SBA 7(a) borrowers are first-time business owners acquiring existing businesses. While the deal may underwrite well based on seller historicals, post-close execution often falters due to weak financial oversight, poor cost control, and lack of operational planning. These aren’t credit problems at origination, they’re execution problems post-close.

    By requiring borrowers to complete a structured onboarding program that includes basic financial literacy (e.g., reading P&Ls, cash flow budgeting, payroll/tax obligations) and by requiring lenders to perform quarterly performance check-ins during the first year, the SBA could materially reduce early-stage defaults. This is particularly critical for acquisitions where success hinges on the buyer stepping into a key management role.

    Additionally, lenders would benefit from improved transparency on business performance trends, enabling earlier intervention if issues arise. This kind of support structure is standard in many private equity-backed rollups. There’s no reason SBA borrowers, who are often undercapitalized and overwhelmed, shouldn’t receive similar guidance.

  2. Many borrowers lack the financial literacy or operational support needed post-funding. Improved borrower education and lender post-close monitoring standards could reduce defaults.

  3. One of the most overlooked contributors to early-stage defaults in the 7(a) program is borrower unpreparedness, especially among first-time buyers acquiring existing businesses. Many borrowers lack fundamental financial management skills, such as budgeting, cash flow forecasting, or understanding working capital needs. These weaknesses often do not surface during underwriting but become critical post-close, when the borrower assumes full operational control.

    NAGGL should champion borrower education as a core component of SBA lending. This could include a standardized onboarding curriculum covering topics like interpreting financial statements, setting up accounting systems, managing payroll and taxes, and handling vendor relationships. For change-of-ownership deals, this should also include transition planning and operational continuity strategies.

    In tandem, NAGGL should encourage the SBA to formalize post-close monitoring standards, such as quarterly check-ins for the first year, to help lenders catch performance issues early and provide course correction. These efforts would reduce default rates, protect the SBA guarantee, and better equip borrowers for long-term success. Borrower preparedness isn’t just a borrower issue, it’s a portfolio protection issue for every lender in the 7(a) ecosystem.

Shay Kleinschmidt is the Vice President of Lending at FranFund, where she plays a pivotal role in shaping the company’s funding strategies for aspiring franchise and small business owners. Since joining the company in 2012, her strategic leadership has earned FranFund’s lending department a strong reputation for excellence and reliability.

Over the years, Shay has cultivated and expanded an extensive network of lender relationships, allowing FranFund to offer a wide array of competitive funding solutions tailored to fit businesses of all sizes. Her contributions have been instrumental in positioning FranFund as a trusted partner for entrepreneurs.

In addition to overseeing lending operations, Shay focuses on building robust internal controls and risk mitigation strategies, ensuring alignment with the compliance standards of the Small Business Administration (SBA) and other funding programs. I am an active voice in driving industry advancement through leadership positions, including serving on the IFA Supplier Advocacy Board, Titus Center for Franchising Advisory Board at Palm Beach Atlantic, NAGGL Associate Member Committee, and NAGGL Region VI Committee.

I’ve never witnessed change in our industry happen faster than in the last four years. From fintechs to AI–we can’t stop it, but we CAN lead. We can anticipate what’s coming and demonstrate thought leadership that DIRECTS the dialog about how things change. Proactive, not reactive. Smart offense, not bad defense.

  1. Requiring personal collateral for all SBA loans, regardless of size, could benefit the 7(a) program by reducing lender risk, ensuring a level playing field, and promoting responsible borrowing. Personal collateral provides lenders with a safety net, boosting confidence and encouraging more participation from smaller or regional lenders. This would lead to increased competition, better loan terms, and more accessible capital for small businesses. With uniform collateral requirements, all lenders would face the same conditions, preventing unfair advantages and fostering a consistent lending environment. Additionally, requiring personal collateral could incentivize businesses to manage cash flow more responsibly, reducing defaults and improving loan repayment rates. The added security would allow lenders to offer larger loans to businesses in capital-intensive sectors and emerging industries, fueling growth and job creation. Personal collateral also helps protect against moral hazard, ensuring borrowers are incentivized to repay loans. Overall, this change could strengthen the SBA 7(a) program by improving lender confidence, broadening access to capital, and fostering a more responsible borrowing environment.

  2. In my opinion, the main weaknesses are varying collateral requirements, $5MM cap for manufacturing and large-scale retail companies, working capital restrictions, strict guidelines on seller financing, unorganized public data for loan performance tracking, and excessive restrictions on agent and lender fees.

  3. Ensuring that responsible, rule-abiding agents and lenders are not penalized for the actions of a few bad players. Striking the right balance in fee regulations and eligibility standards will maintain the program’s integrity while ensuring fair competition and accessibility. These priorities would improve the effectiveness, sustainability, and reach of the SBA 7(a) program, benefiting all parties.

Neal Patel

CEO, Valzy.com

Andrew Starfield

Managing Partner/Financial Planner, Broad Street Financial

Neal Patel, CBA, CVA, CEPA is a two-term NAGGL Board member (2019, 2022) and current Executive Committee member. He founded Valzy, an SBA valuation platform used by 200+ lenders, and LendUX, a small-loan automation system built during PPP and now integrated into SBAReady, a tech-driven lender match platform.

He previously led Reliant Business Valuation, which completed 10,000+ SBA valuations before its 2023 private equity acquisition. Neal is a certified business appraiser (IBA, NACVA) and former Chair of the IBA Board of Governors. He’s also a Certified Exit Planning Advisor. He holds a B.S. in Computer Science from Rutgers University.

  1. I’d expand SBA support for API access and automation in the small and large loan process. Lenders need tools that accelerate screening, risk checks, and packaging; without sacrificing credit quality.

    We should enable AI-assisted intake that follows SOP rules but cuts weeks off processing. Time kills deals. Better tech enables faster, safer approvals.

  2. SBA should invest in modern APIs for E-Tran and CAFS, AI tools for pre-screening and data validation and standard benchmarks for valuation and industry risk.

    Manual steps slow down good loans. Lenders need structured data, not PDFs. The SBA should guide, not resist, responsible automation.

  3. Driving SBA tech modernization. NAGGL should continue to lead the push for better APIs, clear automation standards, and lender-driven innovation.

    As someone who’s built SBA tech used across the industry, I’ll continue advocating for speed, security, and responsible innovation.

Andy began his career in the SBA lending industry from 2005 to 2008 before moving into financial services in 2009. In 2018, he partnered with three colleagues to form Broad Street Financial, a boutique financial planning firm where he now serves as Managing Partner, specializing in risk and wealth management planning for small business owners.

He maintains a niche national practice helping SBA lenders and their borrowers secure life and disability insurance quickly and compliantly for their loans. Dedicated to the SBA lending industry, Andy serves as a committee chair for the National Association of Government Guaranteed Lenders (NAGGL).

Committed to learning and giving back within financial services, he also serves as a committee chair for the MassMutual Advisors Association and holds the Chartered Financial Consultant (ChFC) and Business Succession Planner (BSP) designations from the American College of Financial Services.

Outside of work, Andy enjoys traveling, attending sports events and concerts, and coaching baseball. He lives in Bryn Mawr, PA with his wife, Amit, and their two sons, Eli and Isaac.

  1. I would increase the 7(a) loan limit to better match today’s capital needs.

  2. The SBA should focus on improving consistency and speed in loan processing. Inconsistent interpretations and long processing times add friction for lenders and uncertainty for borrowers, slowing access to capital. Streamlining guidance and timelines would greatly improve program performance.

  3. NAGGL’s top priority should be advocating for process and policy consistency from SBA to give lenders confidence in making 7(a) loans. Consistent guidance and predictable processing empower lenders to expand responsible lending and ensure small businesses get timely access to capital.