SBA Division Operations

Participation in SBA lending comes with specific responsibilities, whether a lender operates under delegated authority or submits loans to SBA for approval. Delegated lenders have greater authority to make decisions regarding eligibility, creditworthiness, closing, servicing, and liquidation, but that authority also carries an increased responsibility to ensure those decisions comply with SBA Loan Program Requirements.

For SBA lenders, delegated authority can provide greater efficiency and control over the lending process, but maintaining that authority requires continued satisfactory performance and compliance. SBA considers a lender’s performance, compliance, corrective actions, and overall risk profile when granting or renewing delegated authority, making strong internal procedures and controls essential to a successful SBA lending program.

Our firm helps lenders understand, obtain, maintain, and renew their delegated authority. We provide practical guidance on SBA requirements, lending decisions, documentation, policies, and internal controls so lenders can confidently use their authority while building a compliant and defensible SBA lending program.

Successful SBA lending depends on consistent compliance throughout the life of a loan. From eligibility, underwriting, and closing to servicing and liquidation, lenders must follow the SBA Loan Program Requirements applicable at the time an action is taken and maintain documentation demonstrating that those requirements were satisfied.

For lenders, these day-to-day practices ultimately help protect the SBA guaranty. Gaps in eligibility analysis, documentation, closing, servicing, or liquidation can create significant issues when a lender seeks payment on the guaranty. Strong policies, current procedures, and careful documentation help lenders identify risks early and demonstrate that the loan was handled in accordance with SBA requirements.

Our firm supports lenders throughout the entire SBA loan lifecycle. We assist with eligibility and loan structure, closing and post-closing matters, servicing decisions, portfolio reviews, policies and procedures, and other operational questions that arise in the ordinary course of SBA lending. By helping lenders incorporate compliance into their day-to-day operations, we help them manage risk and protect the SBA guaranty.

SBA lender oversight is the ongoing process through which SBA, including its Office of Credit Risk Management (OCRM), monitors lender performance, operations, risk, and compliance with Loan Program Requirements. This oversight can include lender monitoring, risk ratings, reviews and examinations, testing of loan files and operations, findings, corrective actions, and other ongoing requirements.

Oversight is an important part of maintaining a successful SBA lending program. SBA reviews can identify operational or compliance deficiencies that require a timely response and corrective action. As lenders grow and SBA rules and expectations continue to evolve, lenders must be prepared to adapt their policies, procedures, controls, and practices while demonstrating continued compliance.

Our firm helps lenders navigate oversight activities with SBA and OCRM at every stage. We assist lenders in preparing for reviews and examinations, responding to preliminary and final findings, developing corrective action plans, and addressing ongoing compliance requirements. We also help lenders adapt as SBA rules and expectations change so their programs can continue to grow while maintaining a strong compliance foundation.

Even strong SBA lending programs will encounter difficult situations. Suspected borrower or agent fraud, material misrepresentations, compliance concerns, or other unexpected issues can create risks that extend beyond an individual loan and potentially threaten the integrity of the SBA lending program. In certain circumstances, those issues may also require communication or cooperation with SBA, the SBA Office of Inspector General (OIG), or other investigative and enforcement agencies.

For lenders, identifying these situations early and responding appropriately is critical. Significant compliance failures or failures to act prudently can expose lenders to SBA enforcement actions and may jeopardize delegated authority, program participation, or the SBA guaranty itself. A thoughtful response also helps lenders fulfill their obligations while supporting the integrity of the SBA program.

Our firm helps lenders identify and navigate complex situations that may threaten program integrity. We advise lenders on suspected borrower or agent fraud, potential referrals, communications with SBA, and cooperation with the SBA Office of Inspector General and other enforcement agencies. When unexpected issues arise, we help lenders develop a strategic response that protects their interests while working constructively with SBA and the appropriate authorities.