This course provides guided practice in understanding the framework that governs SBA servicing actions. You will examine SBA’s requirements for prudent servicing, determine authority under the 7(a) Servicing and Liquidation Action Matrix, apply key servicing definitions, and walk through a structured approach to assessing and approving servicing requests.

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

• Explain SBA’s requirements for servicing actions, including commercially reasonable standards, conflicts of interest, and lender preference.
• Identify the appropriate authority for a servicing action using the 7(a) Servicing and Liquidation Action Matrix.
• Apply key servicing definitions, including liquidation value, recoverable value, and recoverable versus non-recoverable expenses.
• Assess a servicing request using a structured, defensible decision-making process.
• Determine when SBA prior written approval is required and outline the proper submission steps.

This course provides guided practice in evaluating and implementing different types of SBA servicing actions. You will examine loan modifications, collateral changes, ownership adjustments, and other servicing decisions to determine appropriate analysis, documentation, and approval authority.

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

• Identify and differentiate the different types of SBA servicing actions
• Determine when a servicing action may be approved under delegated lender authority and when SBA approval is required
• Evaluate financial and collateral impacts associated with common loan modifications
• Analyze borrower requests to assess repayment ability and ongoing viability

This course provides guided practice in understanding how secondary market participation and prepayment rules impact SBA 7(a) servicing decisions. You will examine how selling the guaranteed portion of a loan affects servicing authority, investor consent requirements, reporting obligations, and the calculation of subsidy recoupment and secondary market prepayment penalties.

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

• Explain how selling the guaranteed portion of a 7(a) loan impacts servicing authority and investor consent requirements
• Identify reporting and remittance responsibilities associated with SBA Form 1502 and the Fiscal and Transfer Agent (FTA)
• Determine when the SBA Subsidy Recoupment Fee applies and calculate the appropriate penalty percentage
• Evaluate secondary market prepayment requirements, including the 10-day notice rule and potential interest penalties under SBA Form 1086

This course provides guided practice in monitoring SBA loans during regular servicing to identify changes that may affect loan performance, borrower creditworthiness, or the lender’s collateral position. You will explore how lenders monitor entity changes, management covenants, collateral, and more to ensure prudent servicing practices and protect the SBA guaranty throughout the life of the loan.

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

• Identify key areas of loan monitoring during regular servicing, including entity changes, borrower creditworthiness, and risk rating appropriateness
• Evaluate borrower performance and financial information to determine whether a loan’s risk profile has changed
• Recognize management covenants and understand how lenders monitor compliance with loan agreement requirements
• Monitor collateral securing an SBA loan, including insurance coverage, property taxes, lien priorities, and UCC continuation requirements
• Apply prudent portfolio monitoring practices to identify potential risks and protect the SBA guaranty throughout the life of the loan

This course provides guided practice in analyzing borrower workout requests and determining whether a proposed workout plan is feasible. You will review the documentation, financial analysis, and servicing considerations lenders use to evaluate repayment prospects and structure appropriate workout solutions, including the use of deferments and payment modifications.

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

• Identify when deferments or payment modifications may be appropriate to help borrowers address temporary or ongoing repayment challenges.
• Analyze borrower financial information and projections to assess workout feasibility.
• Evaluate additional factors, such as junior creditors, collateral, and borrower cooperation.
• Recognize when SBA resource partners may assist borrowers in strengthening workout plans.
• Apply prudent servicing judgment when determining whether a workout request is appropriate.