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Level 1

UNDERWRITING

Understand what it means to underwrite an SBA 7(a) loan by evaluating a business’s ability to repay debt. This track provides practical insights into reviewing the income statement, balance sheet, and personal and global cash flow .

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Level 1

LIQUIDATION

Understand what happens when a loan goes into liquidation, and how to manage every step correctly. This track provides practical insight into collateral, recoveries, guaranty purchase, and charge-off decisions.

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Overview

The Level 1 – Underwriting track builds essential knowledge for underwriting 7(a) loans by evaluating revenues, expenses, and other financial components to determine a business’s ability to repay debt.

Across four courses, learners gain a practical understanding of loan underwriting such as the income statement, how to assess and document collateral, the balance sheet, and aligning loan structure with uses of proceeds. The track is fully on demand, allowing learners to move at their own pace, with 30 days to complete all coursework.

Requirements

There are no prerequisites required to take this track. However, it is highly recommended that each learner complete the following courses before beginning this track:

Earn

  • 1 of 5 Required tracks to earn the Level 1 Mastery badge
  • 1 of 4 Required tracks to earn the Underwriting Specialist badge
  • Completion of this track earns 5 CEUs (valid for 24 months from the date of completion)
Purchase Track

Explore Level 1 -
Underwriting Track

Course 1 – Underwriting and the Income Statement

This course introduces the foundations of underwriting by focusing on how to evaluate a business’s income statement. Learners will gain a clear understanding of revenues, expenses, and net income, and how these components help determine a business’s ability to repay debt. The course also covers personal cash flow and global cash flow to support a complete underwriting picture.

By the end of this course, learners will be able to:

  • Explain the purpose of underwriting in small business lending
  • Identify key components of a business income statement
  • Calculate debt service coverage (DSC) using business cash flow
  • Describe when projections are required and how they support underwriting
  • Calculate global cash flow using business and personal financials and understand its role in credit decisions
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Course 2 – Understanding and the Balance Sheet

This course provides a foundational overview of how to review and analyze small business financials from a lending perspective. Through this breakdown of the balance sheet, key ratios, and working capital concepts, you will learn to identify business strengths, red flags, and areas of potential risk.

By the end of this course, learners will be able to:

  • Identify the components of a balance sheet and explain their significance
  • Explain how equity reflects business ownership and retained earnings
  • Use key financial ratios to assess a business’s liquidity and leverage
  • Calculate working capital needs based on cash cycles and expenditures
  • Recognize signs of potential financial stress or risk in a business
  • Understand different working capital solutions when funding gaps exist

Course 3 – Collateral, Guarantors, and Loan Terms

This foundational course helps beginning underwriters understand how to properly structure an SBA loan request. You’ll learn how to assess and document collateral, identify the right guarantors, and determine appropriate loan terms.

By the end of this course, learners will be able to:

  • Identify when and how to take collateral for SBA 7(a) loans
  • Distinguish between required, limited, and supplemental guarantors
  • Determine maximum loan terms based on use of proceeds or blended maturities
  • Apply foundational knowledge to basic underwriting scenarios

Course 4 – Underwriting to the Use of Proceeds

In this foundational course, we’ll explore how loan structure must align with the intended use of proceeds for changes of ownership, debt refinance, real estate purchases, and construction and renovation projects. You’ll learn key definitions, occupancy and lease terms, and how to apply SBA’s underwriting requirements.

By the end of this course, learners will be able to:

  • Identify the key requirements for different types of change of ownership
  • Determine when a debt refinance meets SBA's improvement and eligibility standards
  • Recognize EPC/OC structures and how occupancy rules apply to real estate purchases
  • Understand key construction terms and the additional documentation required for loans
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Ready to Build Your Underwrting Expertise?

Gain the foundational knowledge needed to manage SBA 7(a) loan liquidation with confidence. Enroll in the Level 1 – Underwriting track today and complete the coursework on your schedule.

Purchase Track

Ready to Build Your Liquidation Expertise?

Gain the foundational knowledge needed to manage SBA 7(a) loan liquidation with confidence. Enroll in the Level 1 – Liquidation track today and complete the coursework on your schedule.

Purchase Track