How Does The Recent SBA SOP Update Impact Business Bankers?

So, what do the new SBA SOP changes mean to Business Bankers?  I am sure that other CDC BDOs have flooded your mailboxes with the great news! Yes, the SBA is making it easier for borrowers to secure SBA approval. However! Your bank and your credit team still need to get comfortable with the borrower! Some of the big changes to the SBA SOP have to do with streamlining the affiliation rules (how many additional tax returns you will have to collect), determining creditworthiness, and more leniency on borrowers who have a lot of liquid balances! Finally, prior criminal convictions no longer impact the SBA’s credit approval…this is a BIG ONE! All of this is mostly good news for CDCs! Eventually, your credit team will fall in line and not put you through the ringer when…for example…there is a prior felony on your borrower’s credit history! The SBA may no longer have an issue with it, but your credit manager might!

Until your credit team starts embracing the more streamlined SBA approval process…I suspect they will still put your SBA 504 & 7(a) deals under the microscope! The question then becomes whether you have the skills to quickly size up the financial health of your borrower, estimate how debt the business supports, and put together a bullet-proof case to get your team to support your deal right out of the gate! What are your current CDC partners doing to help you obtain the skills you need to increase your production and your earning potential? 

Enroll in my Business Banker Success Development Program and learn how to get your business banking game from where it is to where you desire it to be! There is no CDC BDO in the market that can make the same offer! Let’s talk if you want to start fueling your success in Business Banking today!

If you want to work with a CDC BDO that will help get you’re your SBA deals to the finish and give you the tools you need to succeed, call me at 310-210-4571. You can learn about the banker development program at www.bizpetrol.com/business-bankers.

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