SBA Today

This week on SBA Today, Paul and Tonya are diving into: 🚚 SBA ON THE MOVE: The SBA has officially relocated its Washington Metro Area District Office to Herndon, Virginia. 📝 AUDIT YOUR OWN FILE: Don't let your deal fall apart over missing basics. 🗣️ FRONTLOAD CLARITY: Quarter-end is no time for ambiguity. 📞 ACTIVE OVER PASSIVE: Call your borrowers daily. 🛡️ PROTECT THE CLOSER: Your closer is the "strong arm" that guides the deal home. 🧠 MENTAL PREP: Make sure your borrowers know the stakes. Tune in, subscribe, and share this episode to help your team navigate the quarter-end rapids! 🛠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. 

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.   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 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!

This week on SBA Today, Paul and Tonya explore the "SBA Dark Web" for a look at the Federal Register before diving into shocking new data on lender satisfaction . From shifting form requirements to a massive satisfaction crash for online lenders, we're looking at what small businesses really want—and where the industry is missing the mark . We're breaking down: 🔍 SBA Dark Web & Form Gutting: Paul dives into the Federal Register, where the SBA is looking to retire redundant forms like the 912 and potentially revamp the 1919 to reduce paperwork . 🤝 Relationship vs. Speed: New data from Lumos shows a massive gap in borrower priorities . While small banks dominate on relational strength (67%), online lenders hold the edge on operational speed (55%) . 📉 The Satisfaction Crash: Lender satisfaction has declined across the board since 2019 . Small banks dropped from 74% to 62%, but online lenders saw a staggering collapse, plummeting from 38% to just 2% . 🎀 The Finish Line: Tonya shares a heartwarming story from a client's ribbon cutting in Castle Rock, Colorado, attended by SBA Deputy Administrator Bill Briggs, reminding us why we fight through the red tape . 💡 The Closing Cure: We discuss how the closing process can make or break a borrower's experience . Paul explains why cross-training your team (underwriters learning processing and vice versa) is the key to a better customer journey . Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

It's turkey week, but the news never sleeps! This week on SBA Today, Paul and Tonya breaking down: ☎️ SBA Connect Call Recap: The call covered the MARC Loan and various notices. 📈 Working Capital Chart: The SBA released a "VERY helpful" chart detailing the options for 7(a) Working Capital Product Options, including MARC Revolving, SBA Express, Seasonal CAPLine, and more. 🗓️ New Connect Calls: Save the dates! The SBA released the 2026 schedule for 7(a) and 504 Quarterly Connect calls with an updated focus. 💔 Hiring Miscommunication: This left employees confused and frustrated after having rearranged personal plans. Tune in, subscribe, and share this episode to stay updated on the latest SBA news!   ⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️

This week on SBA Today, the mood is lighter because the government is BACK OPEN! Paul and Tonya discuss: 🎉The government lights are back on—a Connect Call is scheduled soon, so stay tuned for updates. 💔 MARC Program Update—what's going on? 🏨 SBLC SOLD—why another non-bank entity moving up the rankings should matter to lenders, especially one focused on hotel owners. 📈 BizBuySell Q3 Report Insights—Buyer Urgency & Economic Headwinds! ❌ The 'Investment' Lie—we deliver a reality check Tune in, subscribe, and share this episode to help your colleagues get the latest on the re-opening and the market! ⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️

This week on SBA Today, we dissect the sudden closure and portfolio sale of a Top 20 SBA lender, BayFirst Financial, and their aggressive small-dollar loan program (BOLT). This autopsy holds vital lessons for every lender about risk, pricing, and the current state of credit quality. Why this matters to YOU: 🚨 Industry Shockwave: The abrupt shutdown of a large institution's 7(a) department and a subsequent $5.1 million loss on the portfolio sale signals immediate financial pain from exiting the business. 📉 Macro Warning Signs: The secondary market has been volatile, pricing pressure is down, and credit quality is deteriorating. Your own institution is making internal decisions based on these factors. 💸 The BOLT Program Mistake: BayFirst's aggressive BOLT program focused on smaller 7(a) loans (up to $150,000). The CEO cited stress in older, low-interest rate vintage BOLT loans. You must price for risk! 🔎 Risk Dissection: We examine potential risk multipliers: Higher Risk Loans: Small dollar loans are inherently higher risk due to the nature and financial sophistication of the borrowers. Broker Fees: This bank was known for paying high 2% broker fees , compounding the acquisition cost when defaults rose. Policy: Was the program influenced by the former "Score & Go" process or affected by the collapse of the previous "Do What You Do" collateral standard?  ✅ The Takeaway: The market demands a return to disciplined underwriting and a focus on fundamentals. We all want to help small businesses, but we must be prudent to stay in business.

This week on SBA Today, we are joined by special guest Stephanie Dunn for an upbeat conversation about the true heartbeat of our industry: Connection. But first, Paul gets heated about the ongoing government shutdown. We're breaking down: 😡 INSANE! Paul lets loose, calling the continuing shutdown "Cray Cray, Ridiculous, Wild, Bizarre, Unreasonable, INSANE." Tonya adds that nobody wins this standoff—we all lose. 🤝 The Power of Connection: The overwhelming takeaway from NAGGL was the power of connection. We discuss why connection matters as much as knowledge in this business. 🚀 Giving People Wings: With Stephanie Dunn, we discuss the importance of supportive leadership and how empowering others to grow doesn't create risk, it creates strength. Fear vs. Trust: What happens when teams or banks operate from fear or scarcity instead of connection and trust? We explore the difference between competing and collaborating. Keep the Spirit Alive: We share simple ways to keep the NAGGL spirit of connection going, even when you're back at your desk. Final Farewell: Don't miss THE FINAL EPISODES OF The Art of SBA Lending! 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. ⚠️

This week on SBA Today, Paul and Tonya are live from the NAGGL Fall Conference! We're talking conference takeaways, the ongoing shutdown, and the jaw-dropping new state-by-state analysis of lost lending dollars. 🛑 We're in a holding pattern. We explain why funds won't be available immediately upon re-opening, even for authorized loans. ✅ Good News from the IRS: The IRS is still processing 4506C requests and transcripts. ❌ Bad News on Citizenship: The SBA is NOT processing Citizenship verifications during the shutdown. 💸 The True Cost of Shutdown: The SBA released a State-by-State Analysis of loans not approved due to the shutdown. California is losing the most at 212 loans and $126 Million PER WEEK. Other major impacts: Texas (125/week) , Florida (135/week) , and New York (106/week). The least affected is West Virginia (4 loans/$1.4 million per week). 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. ⚠️

It's Day 14 of the shutdown, and we're tackling borrower anxiety while celebrating an SBA content legend! This week, special guest Ray Drew joins us to discuss the chaos and drop some major news about the future of his shows. We're breaking down: ⚠️ Borrowers on Edge: We discuss the fear and anger from borrowers facing a continuing shutdown and the looming problem of expired documents and backlogs once the SBA reopens. 📝 Borrower "Stay Ready" Plan: Use this time to organize financials, update business plans and projections, and complete due diligence on purchases. 🚧 The Post-Shutdown Nightmare: Expect a heavy backlog, slower processing, high call/email volume, and a rush of new applications (especially for General Purpose lenders) . ❤️ Practice Kindness: We urge everyone to be kind to borrowers, sellers, lenders, and SBA employees, recognizing that strain and fear are running high right now. 💥 RAY DREW RETIRES! After six years, Ray Drew announces he is retiring from the Art of SBA Lending podcast. 🚀 The Next Chapter: The BDO Show is getting a new cast (a West Coast crew including the "$100 Million Dollar Man," Daniel Park) and launching Season 3 on Monday . 🎤 EPIC Final Episodes: Ray details the last three episodes of The Art of SBA Lending, featuring Chip Mehan (CEO of Live Oak Bank), a special story with Heidi Whitesell, and a reunion with the four loan officers who brought him into the SBA. 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. ⚠️

This week on SBA Today, we're broadcasting from the dark, dealing with the government shutdown, and dissecting the end-of-year lending stats and the last-minute rule changes that slipped out right before the lights went off . We're breaking down: 🛑 How Long Will It Last? We break down the poll results (spoiler: most people are wrong!) and why Paul thinks we're looking at 30 days plus of shutdown. ⚠️ Servicing Nightmare: Borrowers still owe payments, but good luck getting a deferment or modification. We discuss the growing backlog and the "stupid decisions" lenders start making during a shutdown. 🗺️ Definition Change: The SBA removed the "in the same geographic area" requirement from the New Business/Expansion definition, a change Paul is "scared" about and Tonya thinks is a recipe for trouble. 🛠️ MARC, Fees, and ESOPs: Get up to speed on the Procedure Notice changes, including: The 90-day fee rule DOESN'T APPLY to Working Capital Pilot programs . MARC loans CANNOT refinance same institution debt and must be GP. Construction Contingency for 504 loans increased from 10% to 15%. 📊 End-of-Year Stats: Who Won? We break down $37 billion in 7(a) loans and $7.8 billion in 504 loans : Live Oak (No. 1) hit $2.8 BILLION with a large average loan size . Newtek Bank (No. 2) did almost twice the volume of loans at a smaller average size. 📉 Lender Fallout: We discuss the news of a Top 20 SBA lender selling off their portfolio and why low-profile is sometimes the best strategy. 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.

This week on SBA Today, we tackle the high-stakes political drama that could affect your deals and celebrate the unsung heroes who keep the process moving during National SBA Closer Appreciation Week! We're breaking down: Will They or Won't They? Congress failed to reach an agreement on the Continuing Resolution, leaving us at the end of the fiscal year tonight and facing a possible government shutdown. Get those authorizations in now! The SOP BOMBSHELL: The SBA just released a 203-page Servicing and Liquidation SOP. Paul nerds out to tell you the two key takeaways, including the new "SBA Uncollectible" status in E-Tran. A Closer's True Value: We welcome Regina Braga (President/CEO) and Rachel Lesperance (Closing Supervisor) of Res/Title to discuss the indispensable traits of a great SBA closer: customer service and problem-solving (firefighting!). The Wildest Closing Story: Find out what it takes to close 100 properties in one portfolio across three states—it will make you "want to vomit," according to Paul! Borrowers' Biggest Mistakes: We reveal the two critical things closers wish borrowers knew, including the need for a borrowing entity bank account for cash-out transactions.  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.⚠️