7 Class Hours

Instructor: Brian Carlson

The course will provide an overview of how to create a successful and profitable SBA lending operation and provide a good working knowledge of SBA lending. The focus will be how to create an effective SBA lending operation and how SBA lending can improve a bank from a CAMELS perspective. You will see how SBA lending can be used to enhance capital, asset quality, management’s reputation, earnings and liquidity. The class will look at the costs of sourcing loans, underwriting, closing and servicing, so that your bank can forecast its profitability.

The course will also address the following areas:

  • What the key steps in the SBA lending process are and how to insure that your SBA loan guarantees will be enforceable
  • Strategies for successfully and cost-effectively marketing for SBA loans
  • The basics of how the SBA secondary market works when a bank sells the guaranteed portion of an SBA loan
  • Why SBA lending provides significantly higher yields than traditional commercial lending
  • What are the biggest risks related to SBA loans
  • How to use SBA lending to refinance loans in your existing portfolio to reduce risk and loan concentrations
  • Comparison of SBA loan yields when the guarantees are retained or sold
  • How FASB 91 and 166 affect SBA lending
  • Case study on how one bank is using SBA lending to generate profits far in excess of traditional banks
  • Case study of how SBA lending can be used to enhance a bank’s capital position and profitability

Annual School Session

Second/Third Year, Second Week Elective Course

Lending Track