DIY SBA Lending
Some of you saw the title and said to yourself “Great, someone finally put together a YouTube video on how to be an SBA Lender” – nope. It probably can’t be done and even if it was done you’d fall asleep 10% of the way in. The SBA’s current SOP 50 10 5(K) contains 426 pages of information. Add to that the SOPs for Servicing and Liquidation and Policy Notices and you have way too much information to cram into a video. Additionally, like any one of these DIY project videos, it’s never as easy as it looks. SBA lending isn’t easy. Like baseball, the SBA has as many unwritten rules as it does written requirements. In fairness to the SBA, you can’t write a loan program that addresses every possible situation.
Knowing the basics of SBA lending is a great starting point. The SBA program encourages, nay requires, that any SBA loan that is made could not be obtained through conventional methods. The inexperienced need training that can be acquired inexpensively, if not free, from your local SBA office and other sources. If you’re serious about SBA Lending, you need to know the rules. Basic understanding helps you originate new opportunities. Potential borrowers need to know:
If their business is eligible for SBA financing
How much can they borrow and how much do they have to put into the deal
What are the collateral requirements (Do you have to take my house?)
What collateral is required
Do they have to personally guaranty the loan
Mastering these basics are you first steps to becoming an effective SBA Lender! Want to learn more? Join us on Wednesday, January 29, 2020 at 1 PM EST for our Basic SBA Eligibility RLS Interactive Training.