The Lender's Advantage Newsletter - December 2012

Happy Holidays!

The West Texas District Office would like to wish you a safe and happy holiday season.  We truly appreciate you for supporting our SBA loan programs.

The SBA Lender Relations Team (LRT) Conducted the Following Interview with District Director, Calvin Davis, on December 20, 2012

LRT:  Mr. Davis, how do you view the future of small business in West Texas in the coming years?

Davis:  While I am not a prognosticator, I fully believe that there is an exciting and very prosperous future for the people of West Texas and especially for the local small businesses.  This is in large part due to the enormous potential that will undoubtedly be generated by the Cline Shale find.  As you know, this huge Cline Shale is considered to be the biggest oil play in America's history, and, it's right here under us.  With the imminent upcoming exploration, we will see more people moving to West Texas which means an increased demand for goods and services which ultimately equates to more businesses with small businesses being at the center of the economic expansion.

LRT:  How do you view SBA's lending role in regard to the future growth of West Texas?

Davis:  Using the Permian Basin oil boom as a basis, I believe that SBA and commercial small business lending may not be in large demand at the beginning; however, as big companies become more settled, and more people enter and remain in West Texas, and the natural business diversification occurs, SBA lending will be an essential ingredient in the successful growth and development of the area.

LRT:  You were recently a guest on two radio talk shows that deal with small business matters.  Specifically, station KRFE-AM 580 with Shane Webber, and station KEJS-FM 106 with Ben Gonzales.  What did you find most significant about these interviews?

Davis:  It was amazing that so many people are still unaware of who or what SBA is.  I was able to provide the overview of our lending, contracting, counseling, and disaster programs.  But, the most notable feedback was with reference to the dialogue regarding SBA's Small Loan Advantage Program (SLA).  I carefully explained that under the SBA guaranteed loan program, which spotlights our exciting and recently improved SLA product, you must first find a bank that is authorized to do SBA lending.  I of course explained the SBA loan is actually issued by an SBA bank and it carries the guaranty of the SBA.  I explained that since the personal relationship offers an advantage to the consumer in banking and lending, the potential borrower should first check with their own bank for an SBA loan.  If the individual's personal or business is uncertain regarding the SLA program, I strongly recommended that the potential customer contact the SBA office for direction and advice.

LRT:  Did anyone inquire as to what happens if the lender is still reluctant to offer the SBA product to the customer?

Davis:  Yes.  I gave out our toll free office phone number (800-676-1005) and our website (www.sba.gov) and I explained that the Lubbock-West Texas District Office now publishes a listing of our "most active lenders" throughout our 71 county district.  This can be found on line by clicking here or can be picked-up in our district office.  Any lender on this list is considered to be experienced and well versed enough in SBA lending to provide the potential borrower with the requested and needed assistance assuming the business is otherwise eligible for SBA financing.

LRT:  Thank you Mr. Davis.  We will follow-up with you on this topic as you continue to reach out to our local small business communities.

Rates

Effective September 21, 2012, The Office of Financial Assistance announced the 1st Quarter "Peg" Rate and Direct Interest Rate.  For specific rates, you may view notice here.

Current Lender Activity Report

The November 2012 Lender Activity Report is now available.  Click here to review the report.

Lender Relations Hot Topics - Important SBA Tools & Web Links

SBA continues to strive to improve its programs and tools to make the SBA process more efficient and user friendly.  SBA has developed 10-Tab systems for both new 7(a) loan application submission packages and for guaranty purchases.  The 10-Tab systems are used to organize the required documentation in a uniform manner thereby ensuring that complete packages are submitted to the centers and expediting processing time. 

10-Tab 7(a) SBA Application Submission Packages

The Loan Guaranty Processing Center (LGPC) 10-Tab Submission PDFs were created to enable lenders to submit new SBA loan applications as organized PDF files.  Submission packages are created by simply dragging documents into the submission PDF file templates. Lenders can access the 10-Tab Submission Instructions and Tutorial by clicking here. 

10-Tab Guaranty Purchase Packages

There are separate 10-Tab Guaranty Purchase Packages for different 7(a) loan guaranty programs.  If the loan is a Standard 7(a) loan, PLP, or a LowDoc Loan, the 10-Tab purchase package will be sent to the National Guaranty Purchase Center (NGPC) in Herndon, VA. The NGPC requests that all guaranty packages be sent electronically by using the "Send This File" link which can be found on SBA's website or by clicking here.

All Express Loans and Small Loan Advantage 10-Tab Purchase Packages go to the Little Rock Servicing Center (LRSC), using a different 10-Tab system.  The American Recovery Capital (ARC) loans also go the LRSC using yet another 10-Tab system.  The 10-Tab purchase packages for Express and ARC loans are submitted electronically to the LRSC using this link.

For more information, please contact Roger Henderson, Lender Relations Specialist/Brand Manager at 806-472-7462 ext. 107 or by email at roger.henderson@sba.gov

Lender Reviews

To help lenders prepare for SBA Lender Reviews, they can access the 7(a) Risk Based Lender Review File Checklist by clicking here.          

Lender Roundtable - Hereford, TX - January 15, 2013

The West Texas District Office would like to invite all lenders in Hereford and surrounding communities to attend an SBA Lenders Roundtable meeting that will be held at the Hereford Country Club on Tuesday, January 15, 2013 from 11:30 A.M. to 1:00 P.M. Lenders will have the opportunity to network and receive the latest updates on the SBA loan programs.  The Hereford Country Club is located at 726 Country Club Drive, Hereford, TX. If you are interested in attending this event, please contact Derenda Fisher at 806-472-7462 ext. 123 or by email at:  derenda.fisher@sba.gov  

Lender Roundtable - Childress, TX - January 29, 2013

The West Texas District Office would like to invite all lenders in Childress and surrounding communities to attend an SBA Lenders Roundtable meeting that will be held at Jakson's Steaks & Bar-B-Que on Tuesday, January 29, 2013 from 11:30 A.M. to 1:00 P.M. Lenders will have the opportunity to network and receive the latest updates on the SBA loan programs.  Jakson's Steaks & Bar-B-Que is located at 1501 Avenue F Northwest, in Childress, Texas.  Lunch will be at the attendee's expense.  If you are interested in attending this event, please contact Derenda Fisher at 806-472-7462 ext. 123 or by email at:  derenda.fisher@sba.gov  

SBA Opportunities Workshop

The Texas Tech University Small Business Development Center (SBDC) in Lubbock will host the SBA Opportunities Workshop on Wednesday, January 30, 2013 from 6 P.M. to 8 P.M.  The SBDC's address is 2579 S. Loop 289 in Lubbock.  Small business owners will have the opportunity to learn more about the SBA loan programs and to learn about the services provided by the Small Business Development Center.  Be sure to register for this event, please contact Elaine Melot at 806-745-1637 or by email at:  e.melot@ttusbdc.org

Training Calendar

We are currently in the process of establishing our lender training calendar for 2013.  Our Lender Relations team can provide the training at your bank location or at our Lubbock District Office.  If you are interested in setting up a training class for updates on the new SOP 50 10 5 (E), SBA Loan Programs, Purchasing & Liquidation or other topics, please contact any of the following individuals: Armando Garcia, Lead Lender Relations Specialist at 806-472-7462 ext. 104/armando.garcia@sba.gov; Roger Henderson at 806-472-7462 ext. 107/ roger.henderson@sba.gov or Derenda Fisher at 806-472-7462 ext. 123/derenda.fisher@sba.gov

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