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Board Candidates 2018
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NAGGL Board of Directors Election – Terms Beginning January 2018

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. [The questions are included on the header of each page as a reminder as you review this lengthy document.]

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) program?

3. What would you recommend NAGGL set as its first priority in its capacity as a representative of lenders, broker/dealers, service providers, and other involved in SBA 7(a) lending?


Lending Institutions  (4 Seats Open, 13 Nominees)

David Bartram
SBA Division Manager/Chief Executive Officer/Executive Vice President
Seacoast Commerce Bank
San Diego, CA

David Bartram joined Seacoast Commerce Bank in July of 2009, and has served as the Executive Vice President, SBA Division Manager, Chief Operating Officer and Director of the Bank. 

David has 35 years of banking experience specific to Small Business Administration ("SBA") lending and management. In 1984, he joined Bank of Commerce where he became the Senior Executive Vice President, Chief Operating Officer and a Director. Over the next 15 years, Bank of Commerce became one of the leading SBA Bank lenders nationally. 

In 1999, Bank of Commerce was acquired by U.S. Bank and David became President of the SBA Division, managing all aspects of SBA lending across the U.S. Bank's national footprint. U.S. Bank became a perennial SBA loan provider, ranking in the top 3 nationally of all SBA lenders. 

David has been involved in the National Association of Government Guaranteed Lenders ("NAGGL") since 1988 and was Chairman of the Board from 2006-2008. In 2004, he was awarded NAGGL's most prestigious honor, the Distinguished Service Award. He is a graduate of San Diego State University and Pacific Coast School of Banking at the University of Washington.


(1) Historically, SBA has made changes to the 7(a) program via policy notices and new Standard Operating Procedures (SOP) rather than publishing these changes in the Code of Federal Regulations (CFR). These changes have generally been effective immediately, leaving the lenders to scramble to make their own system and process changes. This form of program change is confusing to lenders and frustrating to some in Congress. If changes were published in the CFR with a proper notification period, lenders could look in one place for program changes, be provided proper time to implement these changes and ensure they are aware of all program changes.

(2) Since the 7(a) program operates at zero subsidy and receives no appropriations from Congress, all lenders pay, via increased fees, for those lenders that operate “outside the SBA box”. While the Office of Credit Risk Management (OCRM) has made some very positive improvements over the past few years, the 7(a) program simply cannot afford “bad actors”. SBA needs to continue to provide proper resources to have effective oversight.

(3) Government Relations has always been an important role for NAGGL and that will continue. A stable and reliable level of Authorization to fund loans is critical to small business and lenders. Participants in the 7(a) program commit resources to fund loans to small businesses. To have the 7(a) program run low or out of Authorization dramatically harms small businesses and lenders alike. Getting legislation passed to increase Authorization level is nearly impossible. Instead, allow the SBA Administrator, with Congressional prior approval, to increase the annual Authorization level by 15% if needed, to meet the needs of small businesses. 

Davina Bergin
Senior Vice President
Umpqua Bank
Templeton, CA

Davina A. Bergin is Senior Vice President and SBA Production Director for Umpqua Bank. Umpqua Bank is the largest regional bank in the Western United States and very active in the SBA loan program. Davina began her career in SBA lending in 1990 when she went to work for a small community bank just starting up their SBA department. Under her leadership, the bank grew to be the largest SBA lender in their SBA district for 15+ years. Davina has gained a thorough knowledge of the SBA loan program drawing from her experiences and has held positions of increasing responsibility. Five years ago, she chose to focus her career on the sales side of SBA lending which led her to her current position.

Davina has served on the NAGGL Board since 2001 and is a graduate of Pacific Coast Banking School. She is also involved in her local community and serves on the Board of Directors of the Atascadero Rotary Club.


(1) As the 7(a) program is ever changing and evolving, so are the program requirements. SBA needs to look at which program requirements are causing lenders the most issues which in turn are causing barriers to financing for small business. In recent years, we have seen changes to the EPC rule, seller debt refinancing and franchise applications. These particular changes, while well intended, have complicated loans that involve one of those issues and should be amended to remove some of the confusion and restrictions.

(2) Program delivery has been and continues to remain an issue for the SBA. I don’t believe the addition of SBA One has been everything we had hoped it would be.  There are still a number of loans that cannot be processed using delegated authority; when this occurs there are significant delays. SBA needs to fix its delivery system for non-delegated loans or give lenders more delegated authority.

(3) During my tenure on the NAGGL Board, I have been active in NAGGL’s government relations efforts. Without NAGGL’s government relations efforts, the SBA program would not be what it is today. Without a well-funded and stable program, all of the other issues become irrelevant. NAGGL’s priority needs to remain garnering legislative support of the SBA program to ensure its future success.

Mat Foley
Vice President, SBA Program Manager
Salin Bank & Trust Company
Indianapolis, IN

Mat Foley has spent his 20-year banking career developing expertise in financial and risk analysis, small business banking, and regulatory compliance. Currently, Mat is overseeing a new-build SBA department for Salin Bank & Trust Company on the north side of Indianapolis, IN. Prior to that, Mat worked for a number of other banks, including Indiana Business Bank, Flagstar Bank, and First Merchants Bank. He has also worked independently, correcting problems with SBA loans within a contracted bank’s portfolio. Mat frequently serves as a guest expert for SCORE workshops and SBA’s Emerging Leaders program.

Outside of banking, Mat has helped author many changes to Indiana’s Code and has often successfully lobbied for regulatory reform in Indiana. Mat advocates for educational improvements for special needs children and in 2015 organized a successful worldwide campaign to prevent passage of a bill that would have prevented teachers from administering life-saving medication to diabetic students in an emergency. 

Mat is a graduate of the IU Kelley School of Business (Finance, Economics) and holds a Masters of Jurisprudence degree from the IU McKinney School of Law. Mat and his wife, Michelle, have five children. Mat recently completed the program required to become a Public Policy Mediator.


(1) Although counterintuitive to lenders, borrowers’ ability to transfer the SBA guaranty between lenders should be enhanced. Extend unilateral decision making authority to delegated lenders, albeit with controls. The cumbersome current process involves getting both the prospective and incumbent lenders on board and then seeking approval from the SBA. There is little incentive for the incumbent lender to cooperate in the current transfer process. Borrowers can become stuck with a lender that chooses not to utilize the tools SBA allows. Giving the borrower more freedom of movement will increase lender accountability to their SBA borrowers and could even reduce purchase rates. 

(2) Make it easier to participate with SBA. Processing and servicing procedures could be altered to alleviate duplication of efforts. Time spent entering duplicate loan information in multiple places is better deployed elsewhere. The tab systems make for a prime specimen. The CPC tabs require attaching much of the same documentation as the Guaranty Purchase Tabs. Perhaps the files could be uploaded into E-Tran once, thereby allowing each SBA department to pull what they need? Comparing IRS tax transcripts is another example. Could there be scenarios wherein lenders simply use the IRS tax records instead of also obtaining borrower provided versions?

(3) SBA’s efforts to increase access to capital for disadvantaged small businesses or strategically targeted demographics have come to the forefront of congressional concern to a greater extent in recent years. NAGGL’s first priority should be to continue its heroic efforts to stabilize funding and ensure program integrity. This feat requires continuing education of Congress, the SBA, and the membership, openly sharing concerns and seeking solutions to those concerns between each constituency, and by proactively seeking out and advocating for new opportunities to meet the strategic objectives put forth by the SBA and the public policy goals declared by Congress.

Kale B. Gaston
Senior Vice President/Head of SBA Lending
Bank of America/Merrill Lynch
Charlotte, NC

Kale B. Gaston is the Head of SBA Lending for Bank of America. His responsibilities include developing and implementing the overall strategy for SBA Lending within the bank. The SBA Lending Group supports the Small Business and Business Banking lines of business. 

Kale joined Bank of America in February, 2016. He has more than 30 years of experience in commercial lending, SBA lending, commercial real estate lending and leasing. He has worked in senior leadership positions at GE Capital, Wells Fargo and TD Bank. Earlier in his career he worked for a small community bank as well as SBA Certified Development Companies.

Kale earned a B.A. in Business/Economics from Bethany College in Lindsborg, Kansas and a M.B.A. from The Wichita State University. He also attended the John F. Welch Learning Center where he completed several extended management development courses. 

He and his wife Jennifer live outside of Charlotte in Denver, NC. He’s a member of the bank’s Military Support and Assistance group in Charlotte and is also on the Board of Empire State CDC as well as the Lender Advisory Council for the National Association of Development Companies (NADCO).


(1) We should make it a priority to work with current SBA staff as well as the House and Senate Small Business Committee members and their staffs to make SBA lending programs easier to implement. 

When a SBA lender utilizes the program appropriately, it should be allowed the freedom to make the fulfillment of a SBA loan easier for their customers. SBA lenders know how to document commercial loans; we don’t need to have discussions with SBA whether a form was completed correctly. We need to focus our time with SBA on eligibility and let the lenders use their own documents to close 7(a) loans.  

(2) It comes down to reducing the bureaucracy and creating more clarity. The SOP sets the parameters of the program and guides the lenders. It has always created the need to make interpretations. We need to work with SBA to provide more clarity in the SOP so that lenders don’t have to interpret it so broadly. Interpretation can create a playing field that is not level, which then can open up the program to scrutiny by Congress that is not needed or warranted.

(3) Let’s work with SBA and the Small Business Committees to strengthen the program by making the program simpler to understand and easier to implement. 

This is arguably one of the best programs the government offers. SBA lending should be promoted more as a standard bearer for how a public-private partnership should work.

Let’s make the program easier to implement and let the lenders that are doing the right thing with the program serve their customers by making it easier to approve and close a SBA loan with less reviews on forms and documents and more oversight on whether we are using the program appropriately. 

David S. Green
SVP/Director of SBA 
First United Bank
Durant, OK

I have proudly served on the NAGGL Board for 15 years (5 terms), the Region VI Liaison committee for 16 years and NAGGL’s Membership Committee for 5 years. In that time, I have worked on behalf of the association’s members with a common-sense approach to building consensus while also actively voicing my opinion on ways to improve the SBA program. Having been an SBA lender for 25+ years at various size lending institutions as well as a non-bank lender, I understand the various challenges lenders, as well as the small business borrower, endure in navigating the program’s various processes. The program needs to become even more “user friendly” and simpler so that even more lenders are encouraged to become active in the program. I have a passion for working with the small business customer as they are the “backbone” and continued future of our country. On behalf of the association over the last 15 years, I have spoken out for lower guaranty fees, higher loan maximums, condensed SOPs, improved lender oversight functions, and improved education and cooperation with our various constituents. There is more to accomplish and I request your continued support. 


(1) I would continue to try and make this program more affordable for all small business borrowers and reduce the associated fees. For years this program has provided a positive “surplus” of funds to the Treasury. This success has not resulted in a lower fee structure for its participants. The main focus of the program continues to be the creation of new/more jobs and reaching out to those small businesses needing financing. A more affordable program would help reach those borrowers. 

(2) The continued streamlining of the various procedures and the SOP remains a must in making the program viable for all lending partners in using the program in a more efficient manner. The SBA also must streamline their lender oversight process so that there is more consistency and expediency. Reviews take too long, cost too much, and, in many cases, do not provide any “value” for the associated cost. Delays in receiving the final reports also continues to be a problem. 

(3) NAGGL’s continued priority remains the education and promotion of the programs’ benefits and successes. This story must continue to be “broadcast” to all of the various stakeholders using the program, including small businesses, lenders, SBA officials, and PARTICULARY members of Congress. The Board’s yearly trip to visit our congressional partners remains a priority in helping to “educate” them on our program. The various congressional committees are always changing and it is amazing how many of them don’t really know what the program provides. Education remains the key to our success. 

Julie Huston
President, Small Business Lending
Denver, CO 

Julie has been honored to serve on NAGGL’s board these last six years. She currently serves on the government relations/public policy and executive committees and was recognized with NAGGL’S Distinguished Service Award in 2016. 

Julie recently joined LISC. Her passion for small business has translated into building programs, developing products, improving delivery systems and creating methods to ensure that small businesses, and the lending community that supports them, have the tools and support required to succeed. 

From 2010 to 2016, Huston served as President for U.S. Bank’s SBA Division.

Before joining U.S. Bank in 2010, she was COO for MainStreet Lender. During the Great Recession, the portfolio grew to exceed $350 M.

At Textron Capital Franchise Finance, she participated as a Design for Six Sigma Black Belt focusing on developing new products and services. 

As ACFC Leader, she shared GE Capital best practices with several high potential customers including: Hilton Hotels, McDonald’s, Wendy’s and Harley Davidson. 

In 1992, AT&T Capital acquired an SBLC license. She originated its first deal. As SVP Western Region Leader, she was responsible for sales, credit and closing. 


(1) Let’s look at our biggest needs and prioritize them. What are the root causes?

Idea: Where do we find the most repairs? Is it for malintent or tripping up on a rule or process that could be improved upon to meet the intent(-ions) of the program while making it more efficient and consistent. An example that comes to mind is cash injection. Explore the opportunity to make cash injection documentation more consistent and efficient. There is always a way. 

(2) There is still significant opportunity to reduce the paperwork/streamline the process to do more small loans (i.e., under $350,000). This is not just on the origination side, but includes the rest of the lifecycle through pay off. Unfortunately, the cost of doing these loans is often as expensive and time intensive as doing a larger loan, making it difficult for the small business to obtain the capital it needs on reasonable terms, in a timely fashion and the lender from being able to allocate scarce resources.

(3) The SBA 7(a) program was beautifully written. It requires us to look at the business holistically rather than as a product for a specific purpose. How do we help the small business thrive? That’s timeless. That said, political and economic winds will forever be changing. NAGGL’s first priority is to be ready for change, to tell the story going both directions, to help us adapt when or if necessary. It serves us all to ensure the program remains healthy and relevant. No one lender can be everywhere. We are a team that fills the many needs not met by conventional means in all markets, industries and purposes whether they be rural, urban, service, manufacturing, export, special use …

Dave Jackson
National SBA Director
Fifth Third Bank
Cincinnati, OH

Dave’s career at Fifth Third Bank extends more than 30 years. He is currently National SBA Director based out of Cincinnati, Ohio. Dave is responsible for directing all activities in the government guarantee loan program areas: SBA, USDA, and State Small Business Credit Initiative.   

Additional experience at Fifth Third Bank:
• Director, Student Lending
• Director, Consumer Credit Underwriting
• Director, Auto Lending and Leasing
• Director, Commercial Equipment Leasing
• Team Lead for the Special Asset Group: Ohio, Michigan, and Illinois


(1) CLP processing for Preferred lenders should be eliminated if turn times can’t be shortened to two weeks or less. All of us are focused on customer experience and the Agency has ignored the negative impact this slow process has on small business. The banks are fully capable of making prudent decisions and errors can be addressed on the back-end in claims processing if necessary.

(2) The whole SOP is too complex. It is subject to a great deal of interpretation which is far different from bank credit policies which are clear and concise. I would favor a re-write of the SOP to reduce time and costs for banks leading to efficient and speedy access to capital for our small business clients.

(3) I have always admired NAGGL for its commitment to government relations. Communications out of Washington contain far too many misconceptions, sound-bites, partisan positioning, and (fake news?). NAGGL keeps it real. Its staff and Board are experienced and passionate with direct access to all the key decision-makers who listen and believe what NAGGL tells them. Without NAGGL intervention, the 7(a) program shrinks rather than continues the robust growth which fuels capital badly needed by the new era of entrepreneurs.

Mark T. McCune
Executive Vice President/Chief Lending Officer
First Bank Financial Centre
Oconomowoc, WI

I have been actively involved with NAGGL and have participated for several years on the Small Bank Committee. I have been involved with SBA lending for over 26 years. I supervise a Community Bank’s SBA Department and I am actively involved with the issues that involve the SBA SOP and actual real loan situations across the Country. I believe in exchanging ideas with both other SBA lenders throughout the Country and the SBA policy decision makers. I believe the SBA Program truly represents the core economic growth vision and helps small business achieve the American Dream.

Reside in Erin, Wisconsin
MBA in Business Administration from Marquette University
Member and Past President of the Hartford Lions Club
Past President of the Hartford Area Chamber of Commerce
Married and have four wonderful teenage children
Enjoy most sports, surfing, traveling, and playing poker


1) The SBA SOP should clearly state and accept refinancing of Seller held (carried) debt that is two years old regardless of whether it is on interest only or P&I for the first two years as an acceptable refinance option as long as those payments were made in a timely manner. Waiting an additional two years to refinance Seller debt when the Borrower can improve profit and dramatically improve cash its flow only helps strengthen the Borrower and to improve the risk rating of the existing SBA loan. I do NOT believe this “rule” was the initial intent of the SBA.

2) Lending to Franchise borrowers needs to be simplified further. A standardization should be set and the SBA should simplify the standard reviews and take the subjective decision making of “acceptable Franchisor/Franchisee” documents out of the hands of the Banks. Right now, I believe there is too much potential gray area that could be second guessed. If two different law firms hired by a Bank can have two completely different conclusions after reviewing a Franchise Agreement, I think it shows this area needs to be worked on and improved.

3) I believe NAGGL needs to continue to work towards ensuring the continuation of the SBA 7(a) loan program funding and keeping the fees reasonable. The continued success of the SBA program is dependent on receiving adequate funding. 

Tim Romano
Sr. Vice President/Manager, Small Business Lending Group
Pinnacle Bank
Scottsdale, AZ

I have been lending to small businesses since 1996. I have been centered in the SBA market since 2005 when, as President, I led the national expansion of the small business lending group for First National Bank of Arizona. In 2007, FNBA was named the Small Lender of the Year by SBA, an award we received in New York City during Small Business Appreciation Week. I have been with Pinnacle Bank since 2011 and have been responsible for the growth of this Bank into one of the top 3 lenders in the State and the largest community Bank lender in the State. An advocate for the Program, I am a regular panel member for SBA events and SBDC engagements and currently serve as Committee Member on the NAGGL Secondary Market, Membership and Small Lender Committees. I have attended NAGGL conferences and am a regular attendee at NAGGL’s annual Leadership Summit. I am seeking to expand my contributions to the industry by seeking a Board of Director’s seat with NAGGL.  


(1) The one change I would propose would be to match the amortization / repayment period of a loan to the collateral provided as opposed to the use of proceeds for loan. This would benefit the small business Borrower by allowing longer repayment cycle thus reducing the burden to cash flow for Borrowers able to offer commercial or residential real estate as collateral for loan purposes other than real estate financing. These reduced repayment obligations would allow for Borrowers to retain more earnings and internally finance growth, both reducing borrowing needs and stimulating the economy.   

(2) The main weakness SBA should focus on is the complexity of the 7(a) program. Further simplification of the SOPs will enhance lender knowledge of the program. This will reduce dependency on the Agency for interpretation of policy, reduce the Agency backlog and increase turn times for processing requests. Enhanced lender knowledge can result in SBA delegating more decisions to lenders. Lenders will become more responsive to their small business Borrowers and the ease and speed with which capital can be invested into the market will improve.

(3) Since 2011, we have built a strong SBA department and helped hundreds of small businesses with hundreds of millions of new loan originations. The Office of Credit Risk Management, which oversees all lenders within the Program, has developed the “PARRiS” program to monitor its lenders in the Program. I would like for NAGGL to advocate to OCRM for differentiation within the “PARRiS” program based on “small lender” or “large lender” designation, as small community banks like ours do not have the same resources as the larger lenders or the ability to use out-sourced third parties. 

Leticia Scearce
SVP Government Guaranteed Lending Manager
Grandpoint Bank
Phoenix, AZ

Growing up, I was always drawn to the subjects of government, policies, and history. While in college, I completed an internship at Freddie Mac. I never foresaw that the internship would serve as my career platform. It all seemed very complex to me, securitization, a hybrid government/private program, trillions in the marketplace, the link to the consumer in affordability/lower finance costs, and financial markets impact.

It is ironic, that less than a decade later, these “unsinkable” institutions would be rebuilt, and more importantly, were the ones sustaining our lending efforts for many years while the private sector was reconfiguring. Among other effects, the great recession clearly defined my career path. There were two simple career choices: work-out/liquidations or specialize in the only lending available, SBA. I chose the latter; it fit my personality to build versus recover economic value. I have not looked back!

I have the privilege of working for an organization that supports and sees the value in government assisted lending programs. Regardless of our economic condition, government lending programs will continue to be an integral part of our core economic model. I will continue to move to the forefront the value and importance of these programs. 


(1) The second most challenging aspect to SBA lending can be the affiliate test. The combination of the borrower disclosing and the lender checking/verifying through 3rd party searches, tax returns, PFS, etc. adds undue burden and potential liabilities to the borrower for “non‐disclosure” in addition to lender liability if not verified correctly. I do not believe the test outweighs the benefits it attempts to provide in defining small business.

(2) From the borrower’s perspective, I believe SBA One has enhanced the application process. Although a learning curve for the lender, I do believe overall it is simplifying the loan process and each version continues to improve the workflow. Other than changing or eliminating the affiliate test, I would recommend changing a few other areas to the program listed as follows: Allow lender more choice/versatility in rate, rate frequency change, cap/floor, additional lender fees allowed, prepayment structure, reduce CAPLine guaranty fee structure, and simplify the flowchart, timeline, and process for liquidations. Also, for servicing actions where the lender incurs quite a bit of back office time in a credit memo, possible updated appraisals, etc., I would recommend allowing the bank to assess loan document and any servicing fees. 

(3) One item to tackle that would benefit the business owner and the lending intuitions would be to
simplify/reconfigure the affiliate test. That would have an immediate positive impact on the application and underwriting process.

Theresa Tschumperlin
SBA Loan Officer
Sentry Bank
Saint Joseph, MN

Theresa Tschumperlin has over 7 years of SBA experience with duties including business development, underwriting, packaging, closing, servicing, loan sales, and operational management. Theresa is currently involved day to day in all SBA loan processes. Theresa has previously served as Vice President and SBA Operations Manager for a nationwide lender before taking the opportunity to work with Sentry Bank to streamline, create and grow an SBA lending division. Theresa is a Minnesota native graduating from Saint Cloud State University with a BS degree in Finance and Accounting. Theresa is creative and innovative with a true passion for SBA lending and believes that continued development in the SBA program will help small businesses get funded faster and help keep our economy healthy.   


(1) Streamline and standardize the franchise review process which would include a less subjective approach to determining if a system meets the FTC definition of a franchise and to include a standardized approach to determining all other eligibility issues outside of affiliation for franchise systems. 

(2) Effective and efficient interface for all banks to be able to ask eligibility questions and receive a meaningful and clear answer that can be relied upon through liquidation. Also, more transparent and easier communication through the re-purchase process along with quicker turn around. 

(3) Continue to encourage a re-write of the SOP on a per loan product basis to make it easier for each bank to interpret and follow. Also, as mentioned above improve the availability and reliance of all communication between banks and SBA from eligibility questions to re-purchase communication. 

Kendra C. Vincenty
Managing Director Credit & Operations, SVP
Florida Capital Bank, NA
Jacksonville, FL

Kendra Vincenty recently joined Florida Capital Bank as the Managing Director for Credit Administration and Operations. Previously, Kendra served as the Government Lending Manager for First Financial Bank in Cincinnati, Ohio. She has been actively involved in Small Business Administration (SBA) lending for over 20 years, when she helped launch the MicroLoan program to promote economic development through a Community Development Corporation in Columbus, Ohio. Kendra’s responsibilities expanded to include lending in 2002 when she joined Commerce National Bank to develop its SBA programs. In 2009 after that bank was consolidated into First Merchants Bank, Kendra was named Director of Government Lending. Her depth of experience in SBA lending provides her the insight to serve a three-year term on the National Association of Government Guaranteed Lending (NAGGL) board of directors as a representative of small lending institutions. As an instructor for NAGGL, she trains her peers on a variety of topics.


(1) SBA Electronic Systems, SBA One – Especially with other vendors that support our use of the SBA products. Bridging SBA One to other vendors would help in consistency to the file and assurance to the integrity of the information inserted within the bank’s system’s as well as SBA. SBA One too will often find issues that CAVIRS did not report, or is being reported incorrectly. Systems coinciding with one another, whether internally with SBA or with the lenders would be a huge benefit to the deployment of the programs.

(2) To help promote a more consistent partnership built on transparency and to manage expectations, as well as to address banks distrust in the value of the guaranty based on experiences during lender oversight process or guaranty purchase, SBA must provide: 

a. Clear understanding of the expectations of the oversight of lenders and their performance
b. Consistency about the demands of “prudent” underwriting, controls, lending, etc. – what is the SBA’s understanding or definition of the term “prudent” and prudent lending standards. There is often conflicting guidance from agency loan approvals v. lender oversight.
c. Updates to the agencies liquidation and servicing policies

(3) Continued education to the membership on their ability to influence our industry’s programs. Garnering a team approach to their voice and that their voice matters. Working with the committees on publishing directives to the board -- where do they see priorities and how might they assist and measure those priorities? Assurance that the membership matters to NAGGL’s success in keeping the 7(a) programs healthy and alive for their own institutions and their livelihoods.

Gary Youmans
Senior Vice President
First Choice Bank
Temecula, CA

I have been involved with SBA lending since 1980. I am a graduate of San Diego State University as well as the Pacific Coast School of Banking. I have enjoyed my work in the SBA arena and the many people I have met including clients, fellow lenders and SBA personnel. I was awarded the National Financial Advocacy Award by the SBA in 2001 and have grown three SBA departments into national prominence, I was on the board of the CDC SBFC for over 30 years and as a Community Bank Board member grew the Bank to produce a good return to the shareholders. However, the most important accomplishment is being a part of the founding group of NAGGL. While it was originally a California organization we were able to grow it to the national stage to help the SBA during a rough patch when Congress was examining the possibility of shutting down the SBA. Since that time NAAGL has done a great deal for the success of the program by illustrating to all that it is the best private/public partnership in government. 


(1) With the SBA program running as efficiently as it is at a zero subsidy and turning money back to the Treasury, a lowering of the upfront guaranty fee should be looked at as a possible way to increase the attraction to the program. Many borrowers shy away from SBA loans due to the fee. I am not advocating a waiver; borrowers need to pay, but a reduction of the fee on for instance, the average size loan and under. The exception to this would be if it caused an adverse effect on the funding the program currently receives. 

(2) It is no easy task, but sometimes the ambiguity of the SOP makes it very difficult for lenders to make determinations on important items such as the eligibility of a credit and the use of proceeds. With the recent SOP rewrites, we have seen some relief and clarification of policies. However, other areas such as debt refinancing still can create issues that need to be addressed and clarified. This policy ambiguity creates further harm and fear that OCRM will criticize a lender’s decision, and forces lenders to elect to not utilize their PLP authority and instead submit the loan to the LGPC to avoid the perceived risk. 

(3) NAGGL is always on the cutting edge of what needs to be done and is generally proactive on issues so as to not be caught off-guard. The highest priority for the association would be to continue to stay ahead of the issues and communicate to all members what is going on legislatively and explain how each member can help. Also, reviewing the key issues that are affecting the program within SBA itself and gather input from the members to come up with solid solutions. Finally, to maintain an environment where each member of NAGGL feels informed, needed and as important as any other person within the membership. 

Associate Member Category  (1 Seat Open, 2 Nominees)

Charles Edward Bailey
The Bailey Group
Tampa, FL

My name is Charles Bailey and I am President and owner of The Bailey Group based in Tampa, FL. Our company is a leading provider for life insurance used as collateral for small business owners seeking capital through commercial lenders offering SBA 7(a) loans. I started my company after having seven years of insurance industry experience with two global companies with a realization of the need for a national firm that could offer an expedited process to meet the needs of the 7(a) borrower. 

The Bailey Group is a 13-year member of NAGGL and has supported the association and its goals as a Sustaining Member for a number of years, while also sponsoring and exhibiting at both NAGGL conferences annually since 2003. I have served on the Conference and Education Committee since 2014 and am excited to further support NAGGL’s objectives in strengthening our commitment to the small business owners across the U.S. 


(1) Legislation needs to be passed to provide the SBA Administrator the ability to increase the Authorization level in times when SBA loan demand will exceed capacity. This flexibility will help ensure continuity and adequate program funding in times when 7(a) loans are needed the most. Increased utilization of the program in the past has exceeded the authorization limit resulting in emergency action by Congress. With the Administrator flexibility, while the program operates at zero subsidy, 7(a) lending can continue to operate without the risk of shutdown.

(2) The SBA should further its focus on improving the lender oversight process to proactively identify risks in lending activity or portfolio trends that would threaten the viability of the program. Data, including SBA’s analysis, should be readily available to lenders to indicate any issues that are developing by industry, geography, or other risk factors. 

(3) NAGGL’s first priority should be to continue acting as liaison between the lending community, Congress, and the SBA. Through the education of lenders and Congress on the proper utilization of the 7(a) program, NAGGL is able to help craft a program that provides the necessary permanent financing for small businesses across the country. As a Board member, I will work to bring the ideas and concerns of Lenders and Associates to the leadership body and ensure the actions of the Association continue to represent the best interest of all parties including the small business customers, lenders, and the government.

C. E. “Tee” Rowe
America’s SBDC (Association of Small Business Development Centers)
Burke, VA

I have over 20 years of experience working and advocating for small business and the programs and policies that support them. My career started with 10 years on the Committee on Small Business in the US House (where I worked on several 7(a) revisions), and seven years at SBA where I worked in and then led Congressional Affairs. 

I’m now CEO of America’s SBDCs, representing the nation’s leading small business technical assistance provider, small business development centers (SBDCs). America’s SBDCs have been members of NAGGL since I joined their organization because I recognize the partnership that exists between so many 7(a) lenders and their local SBDCs. I want to expand and strengthen those partnerships which are based on a common goal to provide small business with the capital (intellectual and fiscal) it needs to thrive. 

I want to bring my advocacy skills to NAGGL’s board to continue to grow the stature of NAGGL’s membership as the leading providers of capital to the small business community. I also want to strengthen the ties between NAGGL’s members and their local SBDCs to help fortify our mutual clients. NAGGL builds small business success and I want to help drive that message home. 


(1) Anything NAGGL can do to aid the repositioning of borrowers out of high rate “alternative finance” and into 7(a). It’s not a single thing but rather easing a few items that discourage smaller loan refinance – like requiring landlord sign off or raising the unsecured loan amounts. This will help bring more small loans and underserved clients into the 7(a) program and help ease congressional concerns on those loans. Some of SBA’s own policies are hindering lenders’ ability to fulfill those goals.

(2) SBA needs to improve and update SBA One to bring it up to speed technologically, and focus on ensuring continued smooth processing and program support. Slow processing and inconsistency always hurts the program and reflects unfairly on the product. SBA needs to continue clarifying and simplifying its policies.

7(a) performance is amazing, lenders do an outstanding job and it shows in the strength of the portfolio. I think the biggest weakness for 7(a) is SBA not impressing upon the public, the small business community and congressional stakeholders how great 7(a) performance is, and what an effect the program has on the economy. 

(3) NAGGL’s first priority must be supporting loan authorization levels and ensuring program stability including “Administrator flexibility”. That means making the economic development case to Congress. 7(a) is the leading economic development tool at SBA and must continue to be seen as the most fiscally sound, ROI efficient program at SBA. Increased loan sizes have driven demand and authorizations up, but also created misplaced oversight concerns in Congress. NAGGL should ensure that 7(a)’s strength is seen as a success and not a liability with a strategy that combines an industry led oversight agenda with increases that support program growth and stability. 

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6/11/2018 » 6/14/2018
Salt Lake City, UT - 7(a) Lender Classroom Training