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Course Descriptions
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NAGGL has developed three groups of SBA lending training courses – Fundamental, Advanced, and Feature – to provide SBA lending professionals with opportunities for growth and success within the industry.


Understanding the SOP 50 10
This two-day foundational course explores all critical 7(a) program requirements to help you properly originate 7(a) guaranteed loans.

On the Agenda
• SBA 7(a) Lender Responsibilities
• Program Parameters
• SBA Loan Eligibility
• Credit Standards
• Loan Authorization
• Processing/Disbursement

Basic Credit Analysis

Using plenty of examples, this two-day course walks students through core credit analysis concepts, including an exploration of ratio analysis, analyzing projections, understanding cash flow, determining repayment ability, preparing the credit memo to meet SBA requirements and more. SBA mandates debt service coverage ratios and the agency’s oversight arm continues to focus on lenders' underwriting practices. This course helps you understand underwriting the ‘SBA way’ to avoid potential pitfalls that can put your SBA guaranty at risk.

On the Agenda    
• Evaluating the Loan Request
• Financial Statement Basics
• Analyzing Financial Statements
• Assessing Projections
• Analyzing Cash Flow
• Assessing Working Capital Adequacy
• Preparing the Pro Forma Balance Sheet
• Evaluating Management
• Evaluating Collateral
• Writing the Loan Report
• Avoiding Common Errors

Closing and Funding the SBA Loan

A two-day course designed for anyone who prepares loan closing documents and coordinates key participants and events during loan closing.

On the Agenda
• SBA 7(a) Basics
• Review of Loan Authorization
• Lender Unilateral Authority
• Loan Authorization Boilerplate Fundamentals
• Due Diligence
• Documentation and Closing

Suggested Prerequisite: Understanding the SOP 50 10

SBA Loan Servicing and Liquidation

A two-day course for those responsible for managing their institution’s SBA loan portfolio’s servicing and liquidation processes in accordance with the 7(a) Servicing & Liquidation SOP 50 57.

On the Agenda
• Program Authorities
• Lender Performance Standards
• Loan Servicing
• Loan Liquidation
• Workouts
• Litigation
• Offers in Compromise
• Guaranty Purchases
• Charge-Off and Wrap-Up Procedures

How to Get SBA to Honor Its Guaranty
SBA only honors its loan guaranty if the lender can document that it “made, closed, serviced and liquidated the loan in accordance with SBA Loan Program Requirements and prudent lending practices”.  This one-day course provides guidance on the mechanics of the purchase process including requirements related to completion and submission of CPC Tabs, Purchase Tabs and Charge-off Tabs, and demystifies the new mandate that lenders “resolve” loans within 24 months of SBA’s purchase—or risk forfeiting the guaranty.  Since protecting the guaranty starts during loan origination and continues through the purchase process, this course also shares tips for avoiding common deficiencies that result in repairs or denials of liability, making this a “must-take” course for every 7(a) lender.

On the Agenda
• Overview of Purchase Guidance
• When and How to Properly Request Purchase
• Understanding the SBA 10 Tab Purchase System
• Common Denial of Liability Reasons
• SBA’s Purchase Review Process
• How to Handle Proposed Repairs and Denials of Liability
• Care and Preservation of Collateral (CPC) Tabs
• Lenders’ Post-Purchase Responsibilities



Advanced SOP 50 10 Training
This two-day course uses ‘real-life’ advanced case studies to help lenders understand, apply, and document complex SOP 50 10 requirements.

On the Agenda
• SBA Program Requirements
• Credit Elsewhere
• Lender Preference and Ethical Issues
• Size, Affiliation and Franchise Lending
• Eligibility of Business Model
• Illegal Businesses
• Recognizing Passive Businesses
• EPC/OC Structures
• Uses of 7(a) Loan Proceeds
• Debt Refinancing
• Changes of Ownership
• Review of Credit and Collateral Requirements
• SBA Form 159
• Tips on Protecting Your Guaranty

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. 

Advanced Credit Analysis
This one-day course uses case studies and examples to work through a higher level of credit analysis that focuses on the income statement as well as the balance sheet. Income statement analysis is centered in determining cash flow for the business using EBITDA and global calculations, calculating UCA cash flow and evaluating projections while balance sheet analysis is centered in analyzing working capital needs, evaluating leverage, and creation of the pro forma balance sheet.

On the Agenda
• Quick Review of Credit Analysis
• EBITDA Cash Flow Model
• Global Cash Flow Model
• Uniform Credit Analysis (UCA) Model 
• Projections Based Lending
• Debt to Worth/Leverage Analysis
• Working Capital Analysis
• Pro Forma Balance Sheet Analysis

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

Advanced SBA Loan Documentation and Closing

This two-day course helps lenders in ensuring the documents that they assemble comply with the SOPs, the 7(a) Loan Authorization, and support commercially reasonable and prudent lending practices.

On the Agenda
• Key Loan Closing Issues
• Proper Searches
• Third Parties
• Loan Modifications
• Franchises

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.

Advanced SBA Loan Servicing and Liquidation

This two-day 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
• Program Guidance
• Loan Servicing, Including Secondary Market Limitations
• ‘Last Chance’ Loan Servicing (Workouts)
• Loan Liquidation 
• Offers in Compromise
• Guaranty Purchase Process
• Post-Purchase Activities (Wrap Up/Charge Offs, Referrals to Treasury, Referrals 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. 



Addressing Legal Issues in 7(a) Servicing and Liquidation
This one-day 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
• Routine Servicing Actions that Require Counsel Involvement
• Workouts
• Liquidation Plans, Picking a Liquidation Strategy, Liquidating Collateral and Anti-Deficiency Issues 
• Litigation
• Bankruptcy, Receivership, and Other Litigation/Death and Divorce

Mechanics of the SBA 7(a) Secondary Market
A one-day 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.

SBA 1502 Reporting

A one-day 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
• Processing Cycle and Timing Issues
• Introduction to SBA Form 1502
• Ongoing Servicing Fee
• Special Handling Reporting
• Loan Exceptions and Discrepancies
• 1502 Related Servicing Actions
• Payment Adjustments
• Data Exchange

SBA Construction Lending
This one-day course addresses special requirements related to construction lending and risk management.

On the Agenda
• Construction Requirements
• Construction Risk Management
• Performance and Payment Bonds
• Contracts, Budgets and Supporting Documentation
• Construction Loan Documents and Processing
• Disbursements and Close Out

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

SBA Express Lending

Discover (or rediscover!) the SBA Express loan program. This one-day 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

Understanding Lender Oversight and the Review Process

This one-day course provides an overview and refresher on SBA’s risk-based lender oversight processes and practices, and ultimately, how to avoid being cited for ‘exceptions’ and ‘findings’ by SBA examiners. 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 reviews and purchases.

On the Agenda
• SBA’s Loan Program Organizational Structure
• Types of Monitoring and Reviews
• Onsite Review Process
• Common Onsite Review Findings
• High Profile Lender Oversight Issues
• Tips for Avoiding Oversight Problems
• Lender Oversight Fees

Establishing Internal Policies and Procedures for SBA Lending

This half-day course explores the absolute necessity of having comprehensive written lending policies for your SBA department and get suggestions for writing internal guidance that will satisfy all of SBA's requirements – while being “commercially reasonable and prudent".

On the Agenda
• Need for SBA Policy and Procedures Manual
• Minimum Components of Manual
• Common Weaknesses and Deficiencies
• Tips for Effective Writing
• Periodic Review and Updates of Manual

Explore the CAPLines Programs

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 half-day course introduces the CAPLines requirements and policies as reflected in SOP 50 10 5, 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 5
• Overview of Current CAPLines Requirements
• Comprehensive Discussion of Working Capital CAPLines
• Overview of Key Elements of Contract CAPLines

Navigating the Streets of PARRiS

This half-day 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

Get Acquainted with SBA 7(a) Lending

A mini-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
• Background and Program Authorities
• SBA Loan Programs and Processes
• 7(a) Lending Parameters
• Eligibility Criteria – Business and Personal
• Eligible Uses of Proceeds
• Loan Closing
• Servicing and Liquidation Requirements
• SBA Lender Oversight

*Suggested prerequisites are provided to help select courses that build upon previous learning. While these are not mandatory, experience has shown that participants benefit more from the course if they have previously completed the suggested prerequisite(s).

Descriptions updated on January 10, 2020.

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