SBA Today

If you originated loans between 2023 and 2024, you need to hear this. This week on SBA Today, Paul and Tonya are diving into:

• 🔍 THE 2026 OVERSIGHT PLAN: What three specific areas—including lenders with rapid increases in loan volume—is the Inspector General zeroing in on this year, and why should SBLCs be particularly worried?
• 📉 THE KPMG DISCLAIMER: Why did the FY 2025 Independent Audit come with a stunning disclaimer, and what does it signal about the future of SBA audits?
• 🚩 THE 73,302 LOAN FLAG: Over $32 Billion in loans is now under a cloud. What specific OIG report (26-07) flags 73,302 loans for "limited assurance on eligibility," and did your loans make the list?
• 🛠️ PLANNED OIG WORK: Keep an eye out for upcoming reviews on Lender Service Providers (LSPs), manufacturing loan portfolios, and IT capital planning.

The bottom line: Documentation is your best friend. With 73,000+ loans now flagged for review at the time of purchase, having a solid foundation has never been more critical. Tune in, subscribe, and share this episode to stay ahead of the audit trail!

🛠This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

This week on SBA Today, Paul and Tonya are going off the rails with Lance Sexton to discuss:

• THE TRAINWRECK REPORT: Lance dives into a legendary cautionary tale that serves as a reality check for every lender and BDO.
• PLANNING AHEAD: We break down why "knowing what's coming down the line" is the only way to avoid a total trainwreck of your deal.
• THE LAST MINUTE TRAP: A discussion on why waiting until the eleventh hour is the fastest way to turn a solid application into a disaster.

The bottom line: In this market, anything can happen. If you aren't planning for the "wreck," you're already in one. Tune in, subscribe, and share this episode to help your colleagues stay on the tracks!

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

This week on SBA Today, Paul and Tonya dive into:

• 📉 The Credit Squeeze—What recent data from the Small Business Economic Bulletin shows approval rates for businesses under $5M.
• 🔄 The Opening vs. Closing Inversion—For the first time since 2020, business establishment closings have begun to outpace openings.
• 📈 Franchising's 2026 Outlook—The industry is projected to grow by 1.5%, with Texas and Florida leading the pack as top states for expansion.
• ✨ The "Experiential" Shift—Consumer preferences are moving toward "experiential dining" and luxury travel, signaling a shift toward meaning and memories over purely value-driven offerings.

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

This week on SBA Today, we are covering a massive regulatory shift for Green Card holders, a major SBLC merger, and new mandatory requirements for small loans that lenders cannot ignore.

Paul and Tonya discuss:

• 🤝 SBLC MERGER ALERT: Harvest Small Business Finance, one of the 16 SBLCs, is merging with Crossroads Impact (a CDFI) . We'll be watching closely to see how this affects their lending footprint.

• 📋 NEW SMALL LOAN RULES: A new Procedures Notice is out with strict reminders for loans under $350,000 :

  • 2 Months of Bank Statements: This is now a REQUIRED "must," not a "should" . Lenders are specifically looking for undisclosed debt versus the Debt Schedule .

  • Repayment Ability: Credit history and a minimum 1.10x DSCR remain the standard for repayment ability.

  • SBA Express: Note that there are no changes to current SBA Express rules.

• 🛂 THE LPR FINAL COUNTDOWN: If you haven't submitted your LPR applications, you are likely too late . With a 10-day turnaround and thousands in the queue, the March 1st window is closing .

• 🛠️ SERVICING AFTER MARCH 1ST: What happens to existing LPR loans? Standard actions like deferments are fine, but ownership changes or loan increases will trigger new citizenship requirements .

• 📈 MARKET PULSE: The Q3 2025 IBBA data shows 2026 is a year of disciplined dealmaking, with multiples hitting up to 4.1x for larger deals .

Tune in, subscribe, and share this episode to help your colleagues stay ahead of the latest SBLC shifts and small loan mandates!

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

This week on SBA Today, Paul and Tonya are joined by David Parrish, a 20-year SBA veteran and secondary market expert, for a deep dive into the massive regulatory and structural shifts hitting the industry in early 2026.

From the strategic move to allow SOFR and Treasury base rates to the candid "insider" truth behind the agency's 53% headcount reduction, this episode is packed with the data and wisdom you need to navigate the current market.

We're breaking down:

• The New Rate Revolution: Beginning March 1, 2026, the SBA is unlocking SOFR, 5-year, and 10-year Treasury base rates for variable 7(a) loans. David explains the "math in the sauce" behind secondary market pooling and how these rates provide a critical buffer against future market corrections.
• The 53% SBA Draw-Down: The 2025 Annual Report revealed a staggering loss of headcount. David provides a first-hand account of the "deferred resignation" and "early retirement" waves and what the loss of tenured wisdom means for the speed of SBA processing.
• The Green Card Bombshell: A major procedural change now prohibits Lawful Permanent Residents (LPRs) from SBA loan eligibility starting March 1st. We discuss the potentially "devastating" impact on major markets like Florida, Texas, and California.
• FY26 Volume Check: Despite a five-week shutdown at the end of 2025, YTD 7(a) volume has already hit $10.2B. We analyze whether manufacturing initiatives like the MARC program can offset the loss of volume from newly ineligible borrowers.

Chapters:

[00:00:00] Intro

[00:03:31] The Rate Shift: SOFR, 5-Year, and 10-Year Treasury Options

[00:09:48] Secondary Market Liquidity: Pooling the New Base Rates

[00:13:08] The Exodus: Inside the 53% Headcount Reduction

[00:23:32] YTD Volume: $10.2B and the Rebound from the Shutdown

[00:25:55] The Citizenship Mandate: Impact on LPR Borrowers

[00:31:05] Market Hotspots: The Florida and California Squeeze

[00:43:57] Closing: Resiliency in the Small Business Ecosystem

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

This week on SBA Today, Paul and Tonya tackle:

🛂 New Citizenship Mandate—what it means for Lawful Permanent Residents (green card holders).

🏛️ Shutdown Status—the Senate passed the stopgap bill, and it's now in the House for a final vote.

⏳ The Shutdown Squeeze—a short shutdown creates a massive backlog that hits closings first.

🏗️ Permitting is a Problem—Period.

💡 The Execution Gap—Capital alone doesn't fix things. This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

This week on SBA Today, Paul and Tonya are breaking down:

• 📑 The 1919 Exit: The SBA is moving toward a fully electronic submission experience, eventually eliminating the physical Form 1919 altogether.
• 🔍 SOP Updates: SBA is now requiring two months of commercial bank statements for 7(a) Small loans to verify real cash flow.
• ✅ Agency Slim-Down: In 2025, the SBA reduced its workforce by 54%, closed 19 underutilized offices, and cut agency credit card spending by over half.
• 🪪 Fraud & Security: SBA is now cross-checking loan applicants with DHS and Treasury databases to hunt down billions in stolen funds.
• ⏸SBLC Moratorium: The Community Advantage SBLC expansion is on hold after defaults doubled the standard portfolio.

💡 Mark your calendars: The 7(a) Underwriting Call is set for February 11th. This is a must-attend for lenders looking to stay compliant with the new cash-flow focus.

🎧 Catch the full episode for the deep dive into the 2025 Annual Report and what's next for SBA technology.

This episode is sponsored by SBA Collective—empowering community banks and credit unions to compete and win in SBA lending.

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

The SBA just released the Procedural Notice on the new SBSS score guidelines, and the subtext is clear.

This week, Paul and Tonya are breaking down:

• SBSS Sunsetting—Lenders must pivot to internal credit scoring models consistent with their non-SBA guaranteed loans.
• The "Hidden" Message: Paul explains that the SBA now wants a full analysis on every loan.
• Shutdown Déjà Vu: With appropriation talks stalling, a government shutdown is looming.
• Approvals vs. Disbursements: We welcome "Data Nerd" Nick Repertorio to discuss why SBA 7(a) lending isn't evenly distributed and why approval numbers don't always tell the full story of money out the door.

💡 Lender Tip: If your institution has been relying solely on consumer credit scores or the SBSS "Score and Go" method, you have until March to adopt a more robust internal analysis.

🎧 Catch the full episode for a deep dive into the data with Nick Repertorio.

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

The SBA just dropped a massive update for 2026 that will completely change how small-dollar loans are underwritten.

Paul and Tonya break down:

• SBSS Sunset: The Small Business Scoring Service (SBSS) will be discontinued on February 28, 2026, for 7(a) Small loans at or below $350,000.
• Lender Freedom: Lenders can now use their own existing scoring models to streamline small-dollar lending.
• New Inspector General: William "Bill" Kirk has been sworn in as Inspector General, bringing over 30 years of experience to target fraud and restore agency integrity.
• Red Tape Hotline: The SBA's new "Deregulation Strike Force" wants to hear from you at 1-800-827-5722 about which regulations need to go.
• Market Shift: Pipelines are full, but banks are getting more conservative, putting post-closing liquidity and direct operating experience under a microscope.

💡 Mark your calendars: The next 7(a) Connect call is Tuesday, January 20, 2026, at Noon (ET). Don't forget to use the new fee calculator released on January 6th to avoid MARC program errors!

🎧 Catch the full episode for the latest on why your 2026 pipeline might be getting a lot tighter.

This episode is sponsored by SBA Collective — empowering community banks and credit unions to compete and win in SBA lending.

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

Happy New Year! We are kicking off 2026 with a massive episode of SBA Today. From a federal fraud "freeze" impacting thousands of loans to new data on loan performance, we are diving deep into the news you need to start your year strong. We're breaking down:

• ❄️ The Minnesota Freeze—Administrator Kelly Loeffler announced that nearly 7,000 SBA loans in Minnesota are being blocked due to a $400 million COVID-era fraud scandal.
• 📉 Sold vs. Retained Loans
• 📅 Franchise Deadline Extension
• 🛠️ The Power of the Support Network—Paul shares why trying to "save money" by doing it yourself can be a disaster.
• 🏆 2026 SBA Lender Professional Awards—Nominations are now OPEN for the Coleman Report's prestigious annual awards.

Tune in, subscribe, and share this episode to stay ahead of the curve as we navigate the first big updates of 2026!