The Lender's Advantage Newsletter - June 2012

Newsletter Date: June, 2012

New Deputy District Director

The U. S. Small Business Administration West Texas District Office recently welcomed Reynald R. Lops as the Deputy District Director.  He will assist District Director, Calvin Davis, managing the delivery of the SBA programs and services throughout the 71 counties of Northwest Texas.  Lops brings more than 33 years of experience from the Department of Defense – United States Air Force.  Most recently, as a civilian, Lops served as the Director of Management Operations for the 498th Nuclear Systems Wing at Kirtland Air Force Base in Albuquerque, N.M.

Small Business Week Awards Celebrations

The West Texas District Office will recognize its Small Business Week Award winners at the following events:

Thursday, June 14, 2012 - Reception was held at the Amarillo Chamber of Commerce to honor B&W Pantex with the Frances Perkins Vanguard National SBA Award.  This award recognized B&W Pantex for having the most outstanding record in the federal procurement sector for best utilizing women-owned small businesses prime and subcontractors during the preceding fiscal year.  Frances Perkins was a social reformer and the first woman to serve in a cabinet-level position. She also served as Secretary of Labor from 1933-1945.  The Frances Perkins Vanguard award is presented each year by the Administrator of SBA.  B&W Pantex employees, John Woolery, Pesident and Plant Manager, and Brad Brack, Small Business Program Manager, were also honored with individual awards for their support of SBA and the small business community.

Friday, June 15, 2012 - Luncheon was held at the Abilene Civic Center to honor Joyce Denise Ayers, small business owner of Neecee's College of Cosmetology, as the 2012 Minority Small Business Champion of the Year.  This award was in recognition of Ms. Ayers' outstanding support and dedicated effort to benefit the small businesses of our district. The Abilene Black Chamber of Commerce was also recognized for its support of SBA and the small business community.

Wednesday, June 20, 2012 - Luncheon held at the Texas Tech Club in Lubbock to honor John Steinmetz, Lubbock Market President of Vista Bank, as the 2012 Financial Services Champion of the Year. This award recognized Mr. Steinmetz for his significant contribution and dedication to the small business community. Craig Bean, Executive Director of the Northwest Texas SBDC, and Dr. Allen Carrigo, Director Operations and Support for the Northwest Texas SBDC, were also honored for their support of SBA and the small business community.

Thursday, June 28, 2012 - Dinner held at the Alley Cafe in Dumas to honor Michael Ramirez of High Plains Contractors & Management Group, Inc. as the 2012 Small Business Person of the Year. This award was to recognize Mr. Ramirez for his significant contribution as an outstanding small business person and for his dedicated support of small business.

Wednesday, July 11, 2012 - Event to be held at the La Margarita restaurant in Odessa to honor Maria Valeriano of Maria Valeriano Insurance Agency as the 2012 Women in Business Champion of the Year. This award is to recognize Ms. Valeriano for her significant contibutions and dedication to the small business community. Enrique Romero will also be honored as the 2012 SBDC Counselor of the Year.  This award is to recognize Mr. Romero for his significant contributions as an invaluable resource for clients and for his dedication and support of the small business community. The Midland Hispanic Chamber of Commerce will also be honored for its support of SBA and the small business community.

Lender Relations Hot Topics

Rates

Effective March 30, 2012, The Office of Financial Assistance has announced the 3rd Quarter "Peg" Rate and Maximum 504 Third Party Interest Rate.  For specific rates, you may view notice here.

Borrower's Equity Contribution

When making an SBA loan, lenders should be aware, if a borrower contribution is involved, the lender must provide evidence that cash or assets were injected into the business.  Properly executed credit card receipts, paid invoices, processed checks, bank statements, and a settlement statement such as HUD-1 can be used as proof or evidence of injection.  Based on the approval date of the loan, evidence of the source of the equity injection may also be required.  If the loan was approved between 09-06-05 and 10-01-10 (SOP 50 51 2b, Chapter 13) and the equity injection was greater than one-third of the loan amount or $200,000, whichever is less, evidence of the source of funds is required.  If the loan was approved after 10-01-10 and is an early default, evidence of source is required regardless of the injection amount. For more information, contact Roger Henderson, Lender Relations Specialist/Brand Manager at 806-472-7462 ext. 107 or by email at roger.henderson@sba.gov.

Lender's SBA Loan Policy

As SBA Lender Relations Specialists, we are often asked by Lenders if we can provide them with a “sample” SBA Loan Policy.  SBA does not have sample loan policies to provide to its lender-partners.  It is very important that SBA lenders have their Loan Committee members formulate a well-defined SBA Loan Policy that is part of the Lender’s overall loan policy. When a bank makes a decision to start an SBA lending program, one of the first steps that the bank's Loan Committee must take is to establish an SBA Loan Policy.  The bank’s loan committee should consider several factors in establishing this policy.  These factors should include such things as staffing needs, software needs, underwriting criteria, and SBA lending goals.  It should determine as part of its SBA lending goals whether or not the Lender plans to sell the SBA loans on the secondary market.  The Lender should have the SBA Loan Policy be consistent with the Lenders’ conventional loan policy.  The SBA Loan Policy should outline the parameters in which the Lender can use the SBA Loan Programs to supplement its conventional loan policy in order to mitigate its credit risk.  The SBA Loan Policy, just like the Bank’s conventional loan policy, should cover maximum loan amounts, loan terms, loan pricing, fees, etc.  It should cover loan-to-value ratios, real estate policy and other underwriting criteria.  Above all, the SBA Loan Policy should state that the bank's staff has the expertise to process, close, service and liquidate SBA loans. Bank Examiners, as part of their portfolio review, will want to review the SBA Loan Policy to make sure that the bank is following the parameters outlined within the policy.  The SBA Loan Policy is the key document for the lender in regards to its overall SBA Lending Program. For additional information, contact Derenda Fisher, Lender Relations Specialist at 806-472-7462 ext. 123 or by email at derenda.fisher@sba.gov.

New SBA Notices

SBA Procedural Notice 5000-1238

SBA Procedural Notice 5000-1238 - 7(a) Loan Origination 10-Tab Submission Tool was released on 5-18-2012.  Click here to view Notice. 

SBA Information Notice 5000-1239/Lender & Dev. Co. Loan Programs

This update to the SOP, referred to as SOP 50 10 5(E), was effective on June 1, 2012.  SBA will post two versions on the web site: 1) a “tracked changes” version, to enable users to more easily identify what has been modified; and 2) a “clean” version incorporating all of the changes into the document.  The revised SOP may be found under the Lender’s tab on SBA’s website. Please see below for training opportunities on the new SOP. Future sessions will be added at a later date. Click here to view Notice.

SBA Information Notice 5000-1240/Small Loan Advantage Program 

The Small Loan Advantage (SLA) program was re-designed with changes incorporated into SOP 50 10 5(E). Any lender, not just PLP lenders, will have the opportunity to utilize this new streamlined program. Please refer to the notice for details. Click here to view Notice.

SBA Information Notice 5000-1241/Revisions to Export Working Capital, Export Express, & International Trade Loan Programs

There are a number of revisions to eligibility and terms and conditions under SBA's International Trade Loan Programs.  Click here to view notice. 

May Lender Activity Report

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

Training Needs

If any Lenders within our District would like to have training classes regarding the new SOP 50 10 5 (E); program changes outlined within the new SOP, or other topics, contact: Armando Garcia, Lead Lender Relations Specialist at 806-472-7462 ext. 104 or by email at armando.garcia@sba.gov ; Roger Henderson at 806-472-7462 ext. 107 or email at roger.henderson@sba.gov or Derenda Fisher at 806-472-7462 ext. 123 or by email at derenda.fisher@sba.gov.

7(a)Liquidation & Purchasing Training

The West Texas District Office will be providing 7(a) Liquidation & Purchasing Training classes in Odessa and Amarillo in the near future. For further information, contact Roger Henderson at: 806-472-7462 ext. 107 or by email at roger.henderson@sba.gov.

How to Navigate the Franchise Registry Training - July 12, 2012

This is a follow-up training session to the SBA and Franchises webinar that was held in March. This 90-minute class will start at 12:00 noon Central Time.  This training session will focus on the features and functions of the Franchise Registry.  Edith Wiseman of FRANdata will be the guest speaker. Access information will be available soon and will be sent via email to our lenders and resource partners.

1502 Reporting - Aug. 7 (2 pm-4 pm) & Aug. 9 (10:30 am-12:30 pm) 

Due to the high demand for this class, two training sessions are being offered that will cover the same material. Victor Cruz of Colson Services will be the guest speaker. Access information will be available soon and it will be sent via email to our lenders and resource partners.

Amarillo Banker's Luncheon - July 17, 2012

The West Texas A&M Small Business Development Center will be hosting a banker's luncheon that will be held on Tuesday, July 17, 2012 at the Amarillo Club.  This event will provide a great networking opportunity for our Amarillo area lenders.

Mid-America Lenders Conference (MALC) - August 13-15, 2012

This year the annual SBA Mid-America Conference will be held August 13-15, 2012 in Houston, TX.  This lender training conference will feature a multitude of nationally recognized subject matter experts.  For registration and additional information, click here.  

SBA Women's Lender Forum - October 2, 2012

The West Texas District Office is in the process of developing an SBA Women’s Lender Forum that will be held on Tuesday, October 2, 2012 at the Griffith Center in Lubbock.  If you would like to be part of our development committee or would like to participate as an attendee, contact, Derenda Fisher, Lender Relations Specialist by phone at 806-472-7462 ext. 123 or email at derenda.fisher@sba.gov.

 

 

 

 

 

 

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