The Art of SBA Lending

In this episode of The Art of SBA Lending, Ray tackles a question many top-producing BDOs face: What's next? For those constantly pushing themselves to the next level, it’s not just about the numbers—it’s about growth, challenge, and finding fulfillment in their career.

Ray dives into the various career paths for high-performing BDOs and unpacks the unique challenges and opportunities that come with each option:

• Scaling to the $100 million mark: What does it take, and is it worth the risk of burnout?

• Transitioning to sales management: Can managing a team offer the next level of satisfaction, or is the pay cut too steep?

• Becoming a shop director: What does it look like to lead your own SBA department? Can this role provide both the challenge and compensation that top BDOs are seeking?

We also explore the emerging idea of the "Mini-Director" role, where BDOs can continue to grow without sacrificing income or independence. This episode is packed with real-world insights from a stellar panel of Art of SBA contributors:

• Dustin Baker - CEO and Cofounder of Shatterbox

• Jeannie Yoder - SBA Regional Executive at United Community Bank

• Jared Johnson - Senior Business Development Officer at First Internet Bank

Whether you’re looking to expand your production or explore new career paths, this episode is for you. Tune in to learn how top BDOs are leveling up and what you can do to take the next step in your SBA lending career.

Baker Lewis

Baker Lewis is the SBA lending industry’s premier executive search and personnel consulting firm. Schedule a call by reaching out to Dustin Baker at 940-230-4321.

[Rapid Business Plans]

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to www.rapidbusinessplans.com/art-of-sba

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top. Subscribe here: https://www.artofsba.com/army-of-bdos

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

https://www.youtube.com/@thebdoshow  

www.youtube.com/@sbatoday

Head to http://www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

In this episode of The Art of SBA Lending, Ray Drew tackles the big question that can’t be ignored: Should we be paying underwriters and closers based on production?

From bonuses to performance metrics, we’re exploring what it would take to reshape compensation in SBA lending.

How do you incentivize underwriters and closers in a way that drives performance without crossing compliance lines?

Ray is joined by this weeks Art of SBA Contributors:

• Dustin Baker, CEO and Co-Founder of Shatterbox

• Chris Kwiatkowski, President of Government Guaranteed Lending at Dogwood State Bank

• Darren Davis, President of SBA Lending at Colony Bank

We’re covering:

• Why aligning compensation with performance could improve underwriting and closing speeds

• The risks and benefits of incentivizing non-BDO roles

• How incentive plans could attract new talent and boost retention

• How to navigate SBA compliance when implementing new pay structures

🎧 Tune in to this thought-provoking discussion and see how a shift in compensation could change your shop’s performance dynamics.

Listen in today and let us know what you think in the comments or by leaving a review!

This episode is sponsored by:

Baker Lewis

Baker Lewis is the SBA lending industry’s premier executive search and personnel consulting firm. Schedule a call by reaching out to Dustin Baker at 940-230-4321.

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to https://rapidbusinessplans.com/artofsba

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top. Subscribe here: https://www.artofsba.com/army-of-bdos

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

https://www.youtube.com/@thebdoshow  

www.youtube.com/@sbatoday  

Head to http://www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

This week on The Art of SBA Lending, we’re diving deep into the framework that defines SBA lending success—the credit box.

Ray is joined by our panel of experts to explore how SBA shops build and refine their credit boxes to manage risk and go to market with a competitive product.

What does it take to build a successful SBA credit box? Is your credit box ready for the future?

With insights from this weeks Art of SBA panelists:

Jeannie Yoder, SBA Regional Executive at United Community Bank Brian Carlson, SBA Managing Director at Mission Valley Bank Chris Kwiatkowski, President of Government Guaranteed Lending at Dogwood State Bank

We're covering:

-How to design a credit matrix that reflects your risk appetite -The role of competition in shaping your credit guidelines -Balancing conservative vs. aggressive underwriting -Post-close liquidity and its importance in credit risk assessment -The impact of regulatory compliance on your credit box decisions

Tune in now for a conversation that could redefine your approach to SBA lending and leave us a review!

This episode is sponsored by:

CORPSMART

CORPSMART is a due diligence group that specializes in lien searching, UCC filing, DMV title recordings and more. If you're looking to streamline your process, the CORPSMART team is the best resource, offering a wide range of services, capability to directly integrate with your in-house systems, and the icing on the cake, their over-the-top customer service, making every deal that much easier to close

To discuss your due diligence needs visit the CORPSMART website at https://corp-smart.com for more information or to set up a get acquainted call, email McKenna Weiks at [email protected] - and let them know that the Art of SBA sent you!

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to http://www.rapidbusinessplans.com/art...

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

https://www.artofsba.com/army-of-bdos

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

https://www. http://youtube.com/@thebdoshow

https://www.youtube.com/@sbatoday

Head to http://www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

In this episode of The Art of SBA Lending, we’re diving into one of the hottest and most complex topics in the industry today: broker compensation in SBA lending.

As the competition for volume in the 7(a) space heats up, broker fees are on the rise—sometimes dramatically so. But what does that mean for the industry, lenders, and ultimately, the borrowers?

Join us as Ray brings in another panel of expert Art of SBA Contributors to dissect the impact of increasing broker referral fees and the ripple effects they have on SBA lending.

Is higher compensation pushing brokers to steer deals toward banks that offer the highest payout rather than the best solution for the borrower? And are those costs being passed on to the small business owner in the form of higher interest rates?

In this episode, we’ll break down:

• The ethics and impact of rising broker compensation
• How higher referral fees could affect borrower pricing
• Why banks might be "buying" business rather than earning it
• A proposed solution to ensure transparency and competition in the industry

Joining us are top SBA professionals:

• Charles Green, SVP at Harvest
• Kay Anderson, SVP at Live Oak Bank
• Javier Jorge, CEO of Chatbiz and SBA Director at Locality Bank

Tune in for a candid conversation on what’s driving broker compensation trends and what the future of SBA lending might look like if these practices continue.

This episode is sponsored by:

Lumos Data

Lumos empowers your small business lending growth with cutting-edge analytics and streamlined applications that optimize your performance.

If you're ready to take your small business lending to the next level with cutting edge analytics visit lumosdata.com.

‌

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to 

https://rapidbusinessplans.com/art-of-sba

Join us at FLAGGL!

Catch Ray Drew, Chris Hackney, Alan Peterson, and Sterling Birdsong speak at the FLAGGL conference on September 19th in Orlando, FL

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

Https://www.YouTube.com/@thebdoshow

Https://www.YouTube.com/@sbatoday

‌

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

 

ARMY OF BDOs | Art of SBA

 

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

This week on The Art of SBA Lending we’re diving into a critical industry debate: the strategic differences between 504 and 7(a) loans for real estate.

This episode will explore:

• Distinct Features: Analyze the structural nuances and financial mechanisms of 504 versus 7(a) loans.
• Strategic Considerations: Examine scenarios where each loan type offers superior advantages, focusing on factors like loan flexibility, interest rates, and collateral requirements.
• Impact Analysis: Evaluate how the choice between these loans affects long-term business relationships and portfolio health.

Featuring expert insights from leading industry experts and Art of SBA Contributors:

• Charles Green, SVP at Harvest
• Ken Rosenthal, Senior Advisor at Momentus Direct Capital
• Brooke Mirenda, President and CEO of SEDCO

🎧 Join us on The Art of SBA Lending for a session filled with expert analysis and debate designed exclusively for SBA lenders and professionals. Tune in to gain insights that will enhance your professional practice and help navigate your decision-making process in real estate lending.

This episode is sponsored by:

The Content Store

The Content Store is a video content agency specialized in podcast, YouTube, and short form video editing.

Elevate your brand with premium video content today. Go to http://www.thecontentstore.com/ to get in touch.

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to 

Art of SBA — Rapid Business Plans

 

Join us at FLAGGL!

Catch Ray Drew, Chris Hackney, Alan Peterson, and Sterling Birdsong speak at the FLAGGL conference on September 19th in Orlando, FL

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

Https://www.YouTube.com/@thebdoshow

Https://www.YouTube.com/@sbatoday

‌

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

 

ARMY OF BDOs | Art of SBA

 

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

In this episode of The Art of SBA Lending, we dive into another crucial conversation: how do we not only attract, but also train and retain the next generation of SBA professionals?

From the great financial collapse to a $37 billion year in 2021, the landscape has drastically changed. Yet, the challenge remains: cultivating a workforce that is not only skilled, but is also loyal.

Welcome our Art of SBA Contributors for this week:

• Dustin Baker, CEO & Cofounder of Shatterbox
• Chris Kwiatkowski, President of Government Guaranteed Lending at Dogwood State Bank
• Javier Jorge, SBA Director at Lake Michigan Credit Union and Founder of ChatBiz

Key Topics:

• Evolution of SBA hiring from post-recession recovery to today's in-demand market.
• Strategies to attract, train, and retain talented professionals in a competitive landscape.
• Creating a culture that aligns with modern workforce expectations.
• Balancing the investment in new employees with the risk of them being poached.

Join us as our expert panel explores how successful SBA lenders are addressing these challenges. Our contributors are leaving us with actionable insights and advice, tailored for anyone aiming to enhance their team dynamics and operational success in today's SBA lending environment.

This episode is sponsored by:

Baker Lewis

Baker Lewis is the SBA lending industry’s premier executive search and personnel consulting firm.

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to 

Art of SBA — Rapid Business Plans

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

Https://www.YouTube.com/@thebdoshow

Https://www.YouTube.com/@sbatoday

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

ARMY OF BDOs | Art of SBA

 

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

In this episode of The Art of SBA Lending, Ray dives deep into the evolving world of business acquisition financing. Are lenders taking on more risk than ever before?

Ray kicks things off by examining how underwriting standards for business acquisitions have shifted, allowing for up to 90% financing and bringing a wave of new buyers with little-to-no industry experience. Is this a positive change for the SBA’s mission or does it open the door to more defaults?

Ray is joined by an expert panel of Art of SBA Contributors, featuring:

• Charles Rho, President of Velocity SBA

• Kay Anderson, Senior VP at Live Oak Bank

• Brian Carlson, SBA Managing Director at Mission Valley Bank

Together, they unpack:

• The growing trend of self-funded search models

• Investor-backed injections

• Whether this new wave of first time entrepreneurs is sustainable

With interest rates creeping up and default rates on the rise, this conversation couldn’t come at a better time. Tune in for a thoughtful discussion on the risks, rewards, and future of SBA business acquisition lending.

This episode is sponsored by:

CORPSMART

CORPSMART is a due diligence group that specializes in lien searching, UCC filing, DMV title recordings and more. If you're looking to streamline your process, the CORPSMART team is the best resource, offering a wide range of services, capability to directly integrate with your in-house systems, and the icing on the cake, their over-the-top customer service, making every deal that much easier to close

To discuss your due diligence needs visit the CORPSMART website at https://corp-smart.com for more information or to set up a get acquainted call, email McKenna Weiks at [email protected] - and let them know that the Art of SBA sent you!

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to http://www.rapidbusinessplans.com/art-of-sba

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

https://www.artofsba.com/army-of-bdos

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

Https://www.YouTube.com/@thebdoshow

Https://www.YouTube.com/@sbatoday

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

The BDO model—it’s reliable and proven, and clearly I’ve been a fan, but is the industry missing out on better alternatives?

We’re getting into it on todays new episode. Join me and our Art of SBA Contributors as we break down the costs, the strengths and potential pitfalls, and alternative options for the BDO model.

Should we be exploring new sales channels?

Are we leaning too heavily on BDO’s?

How do we build a culture that retains top talent?

Listen to our takes this week with:

• Chris Hurn – Founder & CEO of Fountainhead Commercial Capital

• Mike Breckheimer – President & CEO of Windsor Advantage

• Ken Rosenthal – Senior Advisor at Momentus Direct Capital

This episode is sponsored in part by:

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to http://www.rapidbusinessplans.com/art-of-sba

In this episode, host Ray Drew delves into the transformative changes within the SBA 7(a) Small Loan Program.

With the new SOP increasing what they consider a “small loan” from $350,000 to $500,000 and streamlining processes, SBA lending has seen a renaissance in small loans.

Key topics covered include:

• The shift in the secondary market favoring smaller loans

• The role of major banks in processing these loans

• How major banks are stepping up their game for small loans

• Fintechs role in sourcing these small loans

• Strategies for creating and scaling a sustainable small loan program

Ray brings in more Art of SBA Contributors to share their own first-hand experiences with the changes, and break down the essentials of originations, processing and underwriting in the new and growing small loan landscape of our industry.

This weeks contributors:

• Mike Breckheimer, President and CEO of Windsor Advantage

• Darren Davis, President of SBA Lending at Colony Bank

• Christopher Hackney, President of SBA Lending at BayFirst and cohost of the BDO Show

Tune in to discover how your bank can navigate and thrive in this evolving landscape of SBA small loans. Don’t miss this in-depth analysis and expert panel discussion!

Navigate this episode:

Introductions

1:30 Ray introduces and this weeks topic: The rise of the SBA Small Loan Program

7:05 Introduction to this weeks Art of SBA Contributors

7:25 How our panelists banks are handling small balance loans currently and moving forward.

Discussing Originations

11:30 Sourcing deal flow and partnerships with fintech’s

12:35 Keys to success when working with high volume small loan brokers

Discussing Credit

23:00 Creating an efficient, scalable system without taking on more risk

25:20 Auto-decisions for smaller loans

26:55 The possibility of SBA turning into fintech

Overall views of the SBA Small Loan Program

32:25 Biggest obstacle SBA shops face heading into this next era

35:33 Bottle necks in SBA

38:40 Success stories and positive impacts on business owners

This episode is sponsored by:

Lumos Data

Lumos empowers your small business lending growth with cutting-edge analytics and streamlined applications that optimize your performance.

If you're ready to take your small business lending to the next level with cutting edge analytics visit lumosdata.com.

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to http://www.rapidbusinessplans.com/art-of-sba

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today, each week with the links below!

Https://www.YouTube.com/@thebdoshow

Https://www.YouTube.com/@sbatoday

BDO’s…let’s start your weeks strong! Sign up for our weekly sales advice series, Sales Ammo. Every Monday morning wake up to a piece of Rays sales advice in your inbox to help you rise to the top.

Subscribe here:

https://www.artofsba.com/army-of-bdos

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.

Welcome back to The Art of SBA Lending podcast! A place where the most influential leaders in the SBA lending industry come together to debate, discuss, and drive our industry forward.

In today's episode, host Ray Drew kicks things off, addressing the increasing impact of politics on SBA lending. From SOP changes to funding challenges, the SBA mission for diverse funding, and the implications of the 2024 presidential elections, no stone is left unturned.

Join us as we dive into a dynamic panel discussion with three esteemed Art of SBA Contributors:

• Brooke Mirenda, President and CEO of SEDCO

• Bob Coleman, Founder and Publisher at Coleman Report

• Chris Hurn, entrepreneur and SBA lending veteran

Our experts will share their insights on:

• How politics has permeated SBA lending

• The potential impact of the 2024 elections on SBA programs

• The evolving mission of the SBA and its focus on diverse groups

Tune in now and let us know your thoughts!

Navigate the episode:

1:15 Ray speaks on political implications on SBA and the upcoming election

5:54 Panelist introductions

6:20 Has the SBA gotten more political in recent years?

7:30 Will the party in power change the course of the SBA’s core missions of access to capital and job creation?

8:25 Is there a difference between republican administration vs democrat administration when it comes to getting money out the door for Americas small businesses?

9:45 Should it be a part of prudent lending to consider race or gender when making a decision to lend?

13:50 Is there a lower demand of underserved communities requesting SBA loans? What can be done about it?

24:30 What do the next 4 years look like if Trump wins?

29:22 What do the next 4 years look like if the democratic nominee wins?

33:25 How will whoever wins the election impact the printing of new SBLC licenses?

39:50 Why isn’t there a private version of the SBA 7a loans program? Is that a potential contingency plan for the industry if it goes south?

This episode is sponsored by:

Lumos Data

Lumos empowers your small business lending growth with cutting-edge analytics and streamlined applications that optimize your performance.

If you're ready to take your small business lending to the next level with cutting edge analytics visit lumosdata.com.

Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to http://www.rapidbusinessplans.com/art-of-sba

Loving The Art of SBA Lending episodes? Make sure to follow along with our sister shows, The BDO Show and SBA Today with the links below and sign up for our weekly sales advice email series, Sales Ammo!

https://youtube.com/playlist?list=PLy96bxmDpxgc_Xe8QV5cRxx3Ov4G2-OLX&si=LKPyAmIHZ47Yepef

https://www.youtube.com/@theartofsbalending

https://www.artofsba.com/army-of-bdos

Head to www.artofsba.com for more information and to sign up for our must-read monthly newsletter to stay up to date with The Art of SBA Lending.