Diploma Programs

This course uses ‘real-life’ case studies to dive more deeply into the most complex 7(a) loan policies relating to 7(a) Core Requirements and "Standard 7(a) Loans" and "7(a) Small Loans and SBA Express”. [This course includes only minimal discussion related to CAPLines, Export Trade Finance, and Community Advantage Pilot Program.]

On the Agenda

• Recent 7(a) Program Changes
  7(a) Program Authorities
• Overview of SOP 50 10 7.1
• SBA's Risk Mitigation Framework
• Credit Elsewhere, Special Transaction Structures, and Other Primary Applicant Eligibility Requirements
• Uses of Proceeds and Occupancy
• Lender Preference, Ethics and Conflicts of Interest, and Fees
• Debt Refinance and Changes of Ownership
• Credit Underwriting Standards
• Equity Injections
• Collateral Appraisal and Business Valuations
• Other Major Recent Changes
• E-Tran Terms and Conditions Through Disbursement for All 7(a) Loans

Prerequisite: Only students that have recently completed Understanding the SOP 50 10, or have several years of experience should attend the advanced course, which presumes an advanced knowledge of the 50 10 policies and 7(a) lending.

This course uses case studies and examples to work through a higher level of credit analysis that focuses on the balance sheet as well as the income statement. The class will begin with analyzing the income statement to determine cash flow for the business using EBITDA and global cash flow calculations, determining fixed and variable expenses, assessing projections, and sensitizing cash flow. Because a more advanced study of credit incorporates the balance sheet as part of the overall credit analysis, this class will also teach calculating UCA cash flow, analyzing working capital needs, evaluating leverage, and creating a pro forma balance sheet.

On the Agenda

• Recent 7(a) Program Changes
• Review of Credit Basics
• EBITDA Cash Flow Model
• Adjustments to Business Cash Flow
• Global Cash Flow Model and Guarantors
• Statement of Cash Flows and UCA Cash Flow Model
• Projections Based Lending
• Sensitization and Industry Risk
• Fixed vs. Variable Expenses
• Stress Testing the Projections
• Debt to Worth/Leverage Analysis
• Working Capital Analysis
• Pro Forma Balance Sheet Creation and Analysis
• Additional Nuances to SBA Underwriting
• Challenges and Reminders

Prerequisite: Only students that have completed Basic Credit Analysis, or have a minimum of 2 years SBA underwriting experience should attend the advanced course.

This course helps lenders in ensuring the documents that they assemble comply with the SOPs, the E-Tran terms and conditions which replaced the 7(a) Loan Authorization, and support commercially reasonable and prudent lending practices.

On the Agenda

• Recent 7(a) Program Changes
• Size, Affiliation and Guaranty Authority
• Complex Loan Closing Issues
• Proper Searches
• Third-Party Issues
• Submitting the Loan to SBA for Approval
• Documents for the 7(a) Loan
• Disbursing the 7(a) Loan
• Loan Modifications During Disbursement
• Post-Closing Tasks
• Closing Issues That Can Put Guaranty at Risk

Prerequisites: Only students that have recently completed Understanding the SOP 50 10 and Closing and Funding the SBA Loan, or have several years of experience should attend the advanced course, which presumes an advanced knowledge of current policies and 7(a) lending.

This course provides practical guidance on meeting regulatory and policy requirements found in the 7(a) Servicing & Liquidation SOP 50 57, including proper loan servicing, reclassifying loan as 'in liquidation status', accurately completing the liquidation process, considering workouts and offers in compromise. This course relies heavily on case scenarios based on real-life liquidation situations.

On the Agenda

• Servicing and Liquidation Program Guidance
• Loan Servicing, including Secondary Market Limitations
• ‘Last Chance’ Loan Servicing Workouts
• Loan Liquidation
• Offers in Compromise
• Guaranty Purchase Process and Universal Purchase Package (UPP)
• Post-Purchase Activities (Wrap-Up/Charge-Off, Referral to Treasury, Referral to OIG)

Prerequisite: Only students that have recently completed SBA Loan Servicing and Liquidation, or have several years of experience should attend the advanced course, which presumes an advanced knowledge of the 50 57 policies and 7(a) lending.

This specialty course builds on the student’s existing knowledge of and experience with handling 7(a) loan servicing and liquidation to examine the legal aspects of various servicing and liquidation activities. The course relies on case scenarios to illustrate the principles being discussed. The fundamentals of loan servicing and liquidation will NOT be covered in this course, so a solid foundation in all SBA loan servicing and liquidation requirements is a mandatory pre-requisite.

On the Agenda – Legal issues related to servicing and liquidation, including:

• SBA’s Requirements for Legal Counsel and Prudent Lender Practices
• Loan Monitoring
• Modifying Loan Notes
• Routine Servicing Actions that Might Require Counsel Involvement
• Modifying Collateral
• Modifying Guaranties
• Workouts
• Accelerating Note and Making Demand for Payment in Full
• Liquidating Collateral
• Federal Anti-Deficiency Rights
• Litigation
• Guaranty Purchase

If you’ve ever wished that SBA had a reasonable vehicle for providing line-of-credit financing in larger amounts (up to $5 million), your wish has been granted. This course introduces the CAPLines requirements and policies as reflected in SOP 50 10, then provides a closer look at the Working Capital CAPLines and Contract CAPLines programs. Actual scenarios and examples illustrate how these programs provide innovative ways to meet the capital needs of small businesses during these interesting economic times.

On the Agenda

• How CAPLines is Covered in SOP 50 10
• Overview of Current CAPLines Program Requirements
• Comprehensive Discussion of Working Capital CAPLines
• Overview of Key Elements of Contract CAPLines

A course that introduces the SBA 7(a) loan program and its core requirements to new lenders that are entering this market, those not familiar with 7(a) lending, or current SBA lenders that need a refresher.

On the Agenda

• Recent 7(a) Program Changes
• General Description of 7(a) Program
• Benefits of 7(a) Program, Becoming a Lender, Lender Responsibilities
• SBA Loan Programs and Processes
• 7(a) Lending Parameters
• Eligibility
• Ineligible Businesses
• 7(a) Loan Underwriting
• Equity and Equity Injection
• Loan Guaranties
• Collateral
• Eligible Uses of Loan Proceeds
• E-Tran Terms and Conditions Through Disbursement for All 7(a) Loans
• After Loan is Fully Disbursed
• Litigation
• Guaranty Purchases, Charge-Offs and Administrative Requirements
• SBA Lender Oversight

Note: NAGGL has additional full-length courses (listed above on this page) that fully cover the concepts introduced.

A course that explains the big picture of how the SBA 7(a) secondary market works: who the buyers are, what drives the prices received, what fees go to which parties, and other basics. You'll learn the nuts and bolts of the sale process, including pre-sale topics, the actual sale process, and post-sale issues.

This course provides the most current information about OCRM’s PARRiS oversight review protocol. Learn about the types, frequency, levels, and costs of reviews performed by SBA. Many common issues surrounding the reviews will be discussed and real world examples of findings cited. It is important for all SBA lenders to know the issues commonly unearthed during onsite reviews since review findings mirror common reasons for repairs and denials of guarantee purchase requests. You’ll gain insight into the review process, learn practical tips for preparing for an onsite review, and get advice on avoiding common ‘gotchas’ when dealing with SBA.

On the Agenda

• Types of PARRiS Reviews and Lender Monitoring
• Lender Oversight Fees
• Preparation and Review Readiness

A course for support personnel who service SBA loans and report the status of their institution’s portfolio to SBA’s Fiscal Transfer Agent (FTA).

On the Agenda

• What is SBA Form 1502?
• When is Form 1502 necessary? Who is involved?
• When is Form 1502 due?
• How is Form 1502 reported through SBA's Capital Access Financial System (CAFS)? Where to submit?
• What information should be reported on Form 1502 for 7(a) loans? PPP loans? Secondary market loans?
• How do lenders calculate SBA's annual service fee?
• Where should lenders review errors with Form 1502 reporting?
• How should lenders resolve errors with Form 1502 reporting? What are some exceptions?
• What is the 1502 Reporting Pilot Program?
• Where should lenders make updates to their contact information?
• Who should lenders contact with questions?

This course addresses special requirements related to construction lending and risk management.

On the Agenda

• Types of Construction
• Program Requirements for Construction Projects
• Contracts, Budgets, and Supporting Documentation
• Zoning, Permits and Surveys
• Construction Risk Management (CRM), Performance Bonds and Payment Bonds
• Initial Project Review (IPR) and Review of General Contractor
• Loan Processing and Documentation
• Construction Loan Proceeds Disbursements
• Preliminary Lien Notices and Intervening Liens
• Servicing Actions When Construction is Involved

Suggested Prerequisites: Understanding the SOP 50 10, Closing and Funding the SBA Loan.

Discover (or rediscover!) the SBA Express loan program. This course provides a comprehensive look at the SBA Express program, as well as a brief overview of SBA’s special initiatives.

On the Agenda

• 7(a) Delivery Methods
• SBA Express Basics
• Becoming an SBA Express Program Lender
• SBA Express Eligibility and Credit Criteria
• SBA Express Processing
• SBA Express Servicing and Liquidation
• SBA Express Guaranty Purchase Process
• Brief Discussion of SBA’s Special Initiatives

This class focuses on SBA’s 7(a) credit memo requirements and the best practices for meeting them in order to fully document both a loan’s eligibility and its creditworthiness. While every institution has its own credit memo format, this course examines all of the key topics that lenders must address in their credit memos in order to assure full compliance with SBA’s program requirements.

On the Agenda

• Recent 7(a) Program Changes
• Writing the Credit Memo
• Size Standards, Affiliation, Loan Size and Guaranty Authority
• Loan Maturity and Interest Rates
• Credit Elsewhere
• Special Structures (e.g., EPC/OC, ESOP, ROBS, etc.)
• Eligibility of Business and Principals
• Business History and Evaluating Management
• Eligible Uses of Loan Proceeds
• Agents and Fees
• Credit Standards and Underwriting Analysis for Standard 7(a) Loans as well as 7(a) Small Loans and SBA Express
• IRS Tax Return Verification
• Guarantors
• Collateral Requirements
• Appraisals, Business Valuations and Environmental Reports
• Working Capital Adequacy
• Pro Forma Balance Sheet
• Other Items in SOP 50 10
• Conditions of Approval
• SBA Form 1919
• E-Tran Terms and Conditions
• Amendments to Credit Memo after Loan Approval