Tonya Mazurek is back and joined by a very special guest, Stephanie Dunn, Executive Vice President and Chief SBA Revenue Officer at Community Bank & Trust. They'll dive into Tonya's recent career move and discuss the critical, and often overlooked, reasons why SBA loan deals get rejected.

In this episode, you’ll learn about:

• Debanking Debate: President Trump's new Executive Order, "Guaranteeing Fair Banking for All Americans," targets "debanking" practices based on political, religious, or industry affiliation. This could lead to increased scrutiny for banks and potential requirements to reinstate previously denied clients.

• SBA News Headlines: The SBA has disbursed over $1.5 million to Texas flood victims and approved more than $10.1 million in relief for Kentucky. The SBA Franchise Directory has been reinstated and streamlined, allowing franchisors to sign one master certification. The SBA is also considering raising the 7(a) loan limit, possibly to $7.5 million or even $10 million for industrial businesses.

• Why Deals Fail: A Deep Dive with Stephanie Dunn

• Cash Flow: The top reason for rejection is an existing business's inability to show strong cash flow, which is crucial for repayment ability. Stephanie and Tonya discuss the difference between historical performance and overly optimistic projections, with Stephanie sharing that only about half of businesses actually meet their projections a year later.

• Lack of Experience: Beyond a borrower's own skills, lenders look at the strength of the team around them. A borrower with questionable experience can succeed with a knowledgeable team, and a new manager must understand how to work with an inherited team before making changes.

• Poor Credit & Money Management: It’s not just about the credit score. Lenders dig into payment history, judgments, tax liens, and child support, as these reflect poor money management. Tonya and Stephanie both advise borrowers to know what’s on their credit report before applying to avoid surprises.

• Construction Projects: The hosts discuss the risks of construction projects with low excess cash, inexperienced contractors, or "guesstimate" estimates. They stress the importance of having a contingency plan, an experienced General Contractor (GC), and understanding that delays are common.

• The "Human Factor": A deal can fail because of bad loan officers who "speak too soon," brokers who "spin a deal," or inexperienced bank teams. Stephanie emphasizes that borrowers should vet their lenders by researching their experience in a specific niche. Tonya adds that a good lender should be comfortable saying "I don't know" and will find the right person to help.

Don't miss a beat! This episode is live on LinkedIn and YouTube. You can also catch our family of podcasts: "The Art of SBA Lending" and "The BDO Show." Follow Tonya and Stephanie on LinkedIn for more insights.

This episode is sponsored by: Res/Title

Res/Title, your "One Stop Shop for SBA closings". We're your commercial title and closing company that provides you with the tools and technology to give you an instant quote and Al property reports on any deal in the nation. Whether it's for $35,000 or $35 Mil, we handle closings anywhere in the nation with one point of contact. Get started today! www.res-title.com

⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️