Join hosts Paul Long and Tonya Mazurek on this informative episode of SBA Today as they dissect the newest updates in SBA lending practices, focusing on the long-awaited and newly released SOP 5000 updates.

Presented with their signature blend of humor and expertise, they delve into what these changes mean for lenders, the implications for servicing actions, and the renewed importance of personal and business credit scores in loan evaluations. In a detailed discussion rich with practical insights, Paul and Tonya explore the intricacies of the SOP 5057 servicing requirements, effective from April 2025, providing plenty of practical tips for lenders to stay compliant.

They highlight the criticality of maintaining accurate documentation for loan servicing actions, offering reassurance to lenders amidst these changes.

Additionally, they spotlight the reintroduction of equity verification, emphasizing the importance of credible documentation and how these shifts echo SBA’s earlier, more stringent standards. 

Key Takeaways:

• The new SOP 5057 servicing requirements will apply to loans serviced by the SBA from April 15, 2025. It's imperative for lenders to maintain documentation reflective of the SOPs in place when the service action was initiated.
• Personal credit scores continue to outweigh business credit scores in significance, with 90% of lenders considering personal scores over business scores when evaluating loan applications.
• SBA is enforcing strict confidentiality rules, prohibiting its employees from discussing internal information with outside entities, underlining the importance of discretion in communication.
• Equity injection verification is reintroduced, ensuring lenders provide proof of equity sourced in alignment with the SOPs effective at the time of loan issuance.

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

In this episode of "SBA Today," hosts Paul Long and Tonya Mazurek dive into the Small Business Administration's (SBA) latest fraud prevention measures.

Paul and Tonya draw parallels between these fraud checks and TSA security practices, highlighting the potential frustrations faced by businesses seeking financial assistance. They also discuss the peculiarities surrounding applications flagged for improbable age submissions and question both the flexibility and functionality of the SBA's systems.

The show's core revolves around the SBA's ongoing efforts to curb fraudulent activities within its loan programs. Paul and Tanya scrutinize the effectiveness of these measures, such as citizenship verification and age checks, speculating on whether they are errors within SBA systems or instances of creative fraud. Using a conversational tone replete with lighthearted banter, they ponder over the potential for increased paperwork and processing delays.

This episode further underscores the important yet frustrating role of bureaucracy and compliance for emerging entrepreneurs and community businesses, emphasizing the need for practical application and human oversight.

• The SBA has implemented new fraud prevention measures, including citizenship verification and automatic alerts for improbable ages to combat identity fraud.

• Concerns are raised about the efficacy of these systems and whether they add unnecessary complexity, potentially burdening small businesses.

• There is skepticism about whether these policies may unintentionally create more paperwork, thus delaying processes for both lenders and business owners.

• Paul and Tanya emphasize the importance of human oversight alongside algorithmic checks, implying potential pitfalls if fully relying on automated systems.

• The episode brings attention to the upcoming National Small Business Week and urges the audience to partake in local events to witness the contributions and successes of small businesses.

🛠 Sponsored by 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 AI 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.

In this engaging episode of "SBA Today," hosts Paul Long and Tonya Mazurek navigate the complex world of SBA loans and business acquisitions. Joined by Ryan Hutchins from Peak Business Valuations, they deliver a compelling discussion on various lending and valuation topics relevant to the current economic landscape.

From tackling debates over student loans and governmental operations' financial sustainability to dissecting the intricacies of business valuation, the hosts provide listeners with actionable insights and industry expertise.

The episode dives deep into the pertinent issues surrounding student loans, potential new legislative changes, and the challenges related to staffing and loan management within governmental agencies.

Ryan Hutchins enhances the discussion with his expert analysis on working capital needs, quality of earnings, and business valuation's critical role in helping entrepreneurs make informed investment decisions. His detailed explanations offer a roadmap for understanding how businesses can be evaluated more effectively, especially in times of economic fluctuation and uncertainty. 

• Student Loans in SBA Lending: The controversial proposal to integrate student loans into SBA lending has generated significant debate among lawmakers and lenders.

• Quality of Earnings and Business Valuations: The rising significance of quality of earnings (QOE) and business valuations highlights the importance of assessing financial health and ensuring accurate evaluations, particularly in high-stakes acquisitions.

• Economic Outlook and Trade Impact: Economic challenges, such as international trade dynamics and inflation, are also reshaping the environment for small businesses and manufacturers in the U.S.

🛠 Sponsored by 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 AI 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

In this lively episode of SBA Today, hosts Paul Long and Tonya Mazurek delve into a series of significant topics affecting the Small Business Administration (SBA) and its stakeholders.

On this timely broadcast airing during the week of April Fool’s Day, and filled with spirited banter, they kick off by thanking Rez Title, their new show sponsor. Resuming after Tonya's sun-filled vacation in Florida, where she enjoyed her time acting as the first mate on her cousin's charter company in Key West, they bring their audiences back to the pivotal updates in the SBA universe.

Throughout the episode, Paul and Tanya explore several crucial themes, from the recent job cuts at the SBA to the mandatory inclusion of birthdates in loan applications. They analyze the complexities of these changes, contextualizing them within the broader landscape of small business lending.

Additionally, they discuss the SBA's return to collecting fees on 7(a) loans, emphasizing the necessity for the program to stay financially independent and self-subsidized. Key insights are shared on young entrepreneurs’ reluctance to indulge in debt and the evolving relationship between business owners and financial service providers over time, based on data from the Federal Reserve's small business report.

Key Takeaways:

•  The SBA is cutting 2,700 jobs, impacting various levels of operations, though essential programs remain unaffected.
• A new procedural requirement now mandates that borrower birthdates be recorded in E-Tran, affecting loan application processes.
• The return of 7(a) loan fees aims to rectify the program's financial deficit, ensuring it remains self-sustained.
• Lending patterns show a shift from large institutions to smaller banks and credit unions over the lifespan of a business.
• Young entrepreneurs under 35 are notably averse to taking on debt, influencing the SBA's strategic adjustments.

🛠 Sponsored by 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 AI 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! https://res-title.com/

 Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

In this engaging episode of SBA Today, host Paul Long delves into the dynamic world of Small Business Administration loans alongside guest Lance Sexton.

Paul and Lance explore significant changes unfolding in the SBA landscape, including the reintroduction of fees, the latest policy updates, and other critical lending developments. Through lively discussion, they shed light on these changes and their implications for lenders.

SBA's decision to reinstate fees marks the end of a period of no-cost loans, a move aimed at ensuring zero subsidy operations and securing bipartisan support for the lending program.

The episode further unpacks the revised environmental policies, highlighting the necessity of updated reports and how they impact the loan process. The conversation navigates through additional regulatory changes, such as updates in form requirements and imminent SOP updates expected in the quarterly 7A connect call.

Also, student loan servicing shifts under SBA, while significant workforce reductions raise concerns about retaining specialized staff. 

Key Takeaways: 

• SBA is reinstating borrower fees to maintain the zero-subsidy status of its loan programs, known as the "reverse price rollback."
• New environmental policies require real estate environmental reports to be no more than a year old, maintaining transactional transparency and safety.
• Form updates, like the 1919, have introduced slight changes that lenders need to be aware of to remain compliant.
• SBA is making a substantial workforce reduction, cutting 2,700 jobs to realign with pre-pandemic levels while shifting more focus to field operations.
• The SBA responsibility now includes student loan servicing, highlighting the expansion and increased complexity of the agency's roles. 

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

In this episode of SBA Today, co-hosts Paul Long and Tonya Mazurek delve into an array of topics ranging from questionable SBA loan disbursements to minors, recently announced SBA initiatives, and the restructuring within the agency.

With a mix of humor and expert analysis, Paul and Tonya discuss an intriguing claim of 312 million in SBA business loans allocated to children under 11, debating possible errors and fraudulent activities that might have led to such outcomes.

The episode also covers significant SBA announcements like the Made in America manufacturing initiative aimed at cutting regulations and addressing barriers in loan programs. The conversation touches upon the reorganization efforts within the SBA, scrutinizing staffing challenges and the importance of resource allocation.

The discussion is peppered with insights into the complexities of SBA's operational dynamics, emphasizing the need for streamlined programs and effective governance.

Paul and Tanya wrap up by reflecting on their recent participation in Bob Coleman's Awards Retreat, expressing gratitude for community networking and discussing the impact of recent layoffs in the SBA's Fresno Servicing Unit.

In this episode:

• SBA Loan Allocation Controversy---Discussion on claims of loans being disbursed to children, exploring potential errors or fraud within the system.
• New SBA Initiatives---Introduction of the Made in America manufacturing initiative and plans to expand the 7A working capital pilot program.
• Regulatory Challenges---Critique of the SBA's efforts to reduce regulatory burdens through new initiatives and hotline services for small business feedback.
• Agency Restructuring---Examination of recent layoffs within the SBA, particularly in the Fresno Servicing Unit, and concerns about staffing optimization. 

Are you a business owner or prospective business owner?

Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

In this episode of SBA Today, hosts Paul Long and Tonya Mazurek delve into a riveting session about recent developments and considerations for SBA lending policies.

Paul and Tonya engage in a spirited conversation about the American Bankers Association's recent hearing on Capitol Hill and their eight robust recommendations for strengthening underwriting standards within the SBA framework. Their dialogue humorously likens SBA lending approval to an "Olympics" event where navigating shifting underwriting criteria is akin to a freestyle competition.

Throughout the episode, the hosts explore a wealth of topics including the potential reinstatement of SBA loan authorizations, the implications of non-bank lenders in the current financial landscape, and the vital role of equity injections for startups. They stress the importance of established lending criteria and the impacts on credit risk. Paul vividly illustrates the gap left by the removal of the SBA franchise directory, advocating for its reinstatement for better lending decisions.

How essential is equity injection for startups? It's time to find the balance between strength and flexibility.

Takeaways:

• The importance of maintaining robust SBA underwriting standards and the potential chaos that ensues with undefined criteria.
• The critical role of equity injection for startups and why 10% might not be sufficient for high-risk ventures.
• The necessity of reinstating the SBA franchise directory for informed lending decisions and minimizing financial risks.
• The ongoing debate about participation from non-bank lenders and the subsequent need for stricter regulation.
• Anticipation of changes to SBA fee structures as a response to increasing default rates and financial sustainability concerns.

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

Join Paul Long and Tonya Mazurek for an engaging installment of "SBA Today," where they dissect the current state and chaotic changes within the SBA landscape.

From executive memos to office relocations and workforce policies, this episode explores the numerous, sometimes controversial, policies introduced under the current administration. With a touch of humor and some light-hearted banter, Paul and Tonya provide listeners a vivid glimpse into the regulations reshaping the sector, all while highlighting both the positives and negatives these changes bring to SBA lending. 

The current episode covers a sweeping memo from the SBA administrator focused on promoting U.S. manufacturing, reforming trade offices, and complying with President Trump's executive orders. Key topics include restructuring efforts by eliminating the Office of Diversity and inclusion-related offices, the halt placed on grants non-compliant with executive mandates, and a potential rollback of certain green lending privileges.

With bureaucracy changes comes uncertainties like the longer waits for environmental approvals due to reduced legal staff. Revealing insights into administrative work-structure adjustments and the membrane-thin relationship between political decisions and day-to-day SBA operations feature prominently in the discussion. 

Paul and Tonya dive into notable issues such as the planned closure of sanctuary city offices and enhanced scrutiny of foreign national access to SBA resources. While providing comic relief with sarcastic remarks on some seemingly redundant policies, they target pertinent matters like fraud prevention and advocacy board overhauls aimed at increased efficiency. The episode concludes with reflections on whether productivity will improve with mandatory office returns and how hybrid work options remain crucial for attracting top industry talent. Tonya and Paul spice up financial audits and procedural debates with candid commentary, ensuring listeners walk away both informed and entertained.

Takeaways:

• The SBA's focus has shifted to promoting manufacturing in America, with a transformation in trade offices to support U.S. production.
• Controversial measures align with executive orders, affecting diversity and green energy initiatives, while fraud-prevention strategies take center stage.
• Workforce policies mandate a return to full-time office work, affecting SBA employees amid staffing changes.
• Regional SBA offices might relocate from sanctuary cities, sparking debate about operational impacts and feasibility.
• Enhanced customer service, cybersecurity measures, and restrictive policies on foreign nationals aim at safeguarding taxpayer resources.

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

In this engaging episode of SBA Today, hosts Paul Long and Tonya Mazurek delve into the impact of Kelly Loeffler's confirmation as the new Small Business Administration (SBA) Administrator.

They explore the consequences of shifting work dynamics in the SBA office, especially as workers adjust to new in-office requirements—highlighting potential slowdowns caused by logistical challenges and staff turnover. The lively discussion extends to how these changes could affect small businesses and lending practices in the long run.

With a keen eye on economic trends, the hosts examine a recent Biz Buy Sell report that indicates a 5% increase in business transactions in 2024, marking a higher average sale price of enterprises. They draw parallels between rapidly evolving market conditions and the enduring complexities of commercial lending. The episode also considers the potential effects of proposed tariffs by the Trump administration, their impact on costs, and how small businesses might navigate such inflationary pressures.

Paul and Tonya conclude by anticipating the market trends of 2025, with an emphasis on the challenges faced by retiring baby boomers and the ongoing difficulties in the tight labor market.

Takeaways:

• Logistical Shifts at the SBA: Kelly Loeffler's confirmation as SBA Administrator raises questions about office dynamics, potential staff attrition, and subsequent impacts on small business operations.
• Business Transaction Trends: An increase in business sales and enterprise value in 2024 prompts a closer look at buyer and seller market dynamics.
• Tariff Concerns: Proposed tariffs from the Trump administration could raise operational costs for small businesses, affecting economic recovery and local sourcing efforts.
• Labor Market Pressures: Difficulties in finding skilled employees persist, exacerbating retirement decisions among baby boomer business owners.
• Market Adaptation: Transitional phases in both business practices and employment strategies highlight the necessity for adaptability amidst regulatory and economic shifts.

Are you a business owner or prospective business owner? Let’s see how we can help you. 

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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

In this episode of SBA Today, hosts Paul Long and Tonya Mazarek dive into critical developments surrounding the SBA's 7A loan program. They unravel the complexities of a significant financial setback that threatens to alter the landscape of small business lending. Through insightful commentary and detailed analysis, Paul and Tonya explore how recent decisions have impacted the program's financial health, discuss the consequences of loan fee reductions, and consider potential solutions that could stabilize the program and support entrepreneurship moving forward. The Small Business Administration's flagship 7A loan program is currently facing financial turmoil, marked by a loss of hundreds of millions of dollars in 2024. Paul and Tonya analyze the SBA's recent fee reductions and rising loan defaults as primary contributors to a negative cash flow, emphasizing the need for a balanced approach to supporting small businesses. As SBA struggles with decreased incoming funds from fees, stress on loan purchases by the agency is escalating, reminiscent of the financial pressures during the COVID-19 pandemic. The hosts provide strategic advice, stressing the importance of maintaining rigorous lending standards to mitigate future defaults. Beyond the immediate lending challenges, the episode highlights new leadership within the SBA. The appointment of Thomas Kimsey as the Associate Administrator of the Office of Capital Access represents a significant step toward improving the SBA's strategic direction. Paul and Tanya express optimism about having a seasoned banker in this crucial role, hopeful that his expertise could drive the SBA towards more sustainable practices. Through this engaging dialogue, they guide listeners through the intricacies of managing risk while prioritizing small business growth and access to capital.

Key Takeaways:

☀️The SBA's 7A loan program faces a serious financial shortfall due to reduced loan fees and increased defaults, resulting in a negative cash flow of $274 million.

☀️Fee structure changes intended to ease the entry of borrowers might have unintentionally increased loan defaults, mirroring similar issues from the COVID-19 era.

☀️A significant backlog of loan purchases continues to strain the SBA, indicating a need for tighter management and strategic oversight.

☀️The newly appointed Associate Administrator, Thomas Kimsey, brings banking expertise that could favorably influence the SBA’s approach to financial challenges.

☀️Ensuring rigorous lending standards is crucial to balance small business support with sustainable fiscal policies. 

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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