2015 Fall Training Course Descriptions

Introduction to SBA 504

This one-day course gives anyone who is new to the SBA 504 loan program the foundation required for success. It is the prerequisite for all of NADCO’s courses, and also stands alone for those individuals, such as board members, support staff or referral agents, who just need a general SBA 504 background.

Topics include:
History of the 504 Loan Program
Overview of the CDC Industry
Business Eligibility
Source and Uses of Funds/Loan Structuring
Project Eligibility Guidelines
Credit, Collateral, and Character issues
Loan Approval Process
Loan Closing and Funding Process
Loan Servicing Issues
Successfully Marketing the 504 Loan Program


504 Marketing Sales & Business Development

This NADCO training course is designed to help you increase your SBA 504 volume. Attendees should include existing CDC staff, executives, marketing personnel and most definitely, business development officers. The course is targeted to teach you the principals of business development as well as enhance experienced staff’s knowledge of tools and techniques designed to bring in more deals. The lifeblood of a CDC is attracting new deals. We educate you on effective ways to bring in new business targeting these areas.

Topics include:
How to effectively market the 504 program to different audiences
Defining your best referral sources
SBA 504 loan vs. competing loan programs
How to effectively compete with multiple CDC’s in a market area
Use of the secondary market in your area to effectively win deals
Use of current rules and regulations to effectively win deals
Direct, Indirect, Group and Relationship marketing
Database marketing
Sales techniques
Motivational techniques
Develop your SWOT analysis (if you don’t know what that is….you better get trained)
Develop your own marketing plan and implementation strategy
Top successful marketing tools and collateral material

PREREQUISITE: "Introduction to SBA 504" or at least six-months’ experience with a CDC.

OCRM: Impact of Current Changes & Preparedness

“Change” is the constant in today’s SBA 504 lending world and your CDC needs to be prepared for its next SBA OCRM review or ALP designation renewal. OCRM reviews are not what they used to be in providing SBA with oversight of CDCs.

This one day course is a “must” for the CDC Manager, Board of Directors, and staff responsible for compliance. CDCs who have upcoming or potential SBA OCRM reviews on the horizon and ALP designation renewals coming due in the next 6 months should attend. Real time updates and recently announced changes to OCRM review processes will be included. Designed to be interactive, participants are encouraged to ask questions throughout the course. You are aware of the “who” and the “what”. Participate and you will learn the “where”, the “when”, the “how”, and the “why”. BE PROACTIVE, Not Reactive! Sign up for this course and learn how to prepare your CDC for the next OCRM review, BEFORE you receive the initial notice of review or ALP renewal letter.

Topics Include:
Remote Reviews vs Targeted Review vs Full On-Site Reviews
OCRM Risk Based Review Process Changes Including “SMART”
Components of the “SMART” CDC Profile Assessment
“Legacy” vs “Emerging” Loan Portfolio
Loan File Review Requirements
The Importance of Risk Rating Your CDC Loan Portfolio
Internal Control Discussions
Changes to CDC Organizational Requirements
OCRM Review Ratings
Frequent Review Findings
Current SBA/OIG “Hot Button” Issues
Best Practices to Implement NOW


Writing the SBA 504 Credit Memorandum: Striving for Excellence

This half-day intensive course following the 2015 Annual Meeting will take you step by step through the process of writing a top-notch credit memorandum for SBA 504 loan applications. Participants will find out what it takes to satisfactorily provide the pertinent information required by Sacramento Loan Processing Center (SLPC) for the consideration of a loan’s approval. This interactive course encourages active participation and collaboration as the instructors guide the group through an example credit memo including best practices industry experts are currently finding successful.


Understanding 7(a) Program Basics for Community Advantage Lenders*

This is the first offering of a series of courses being developed by the National Association of Government Guaranteed Lenders (NAGGL) exclusively for participants in SBA’s Community Advantage Program. The session will cover all issues related to 7(a) loan processing from the specialized point of view of Community Advantage lenders and will include interactive exercises and class discussions.

Topics include:
Introduction to SOP 50 10 and Community Advantage Program Guide
Community Advantage Participation Requirements
SBA’s Requirements for Service Providers
7(a) Program Background/Authorities
Community Advantage Program Parameters
Loan Eligibility
Credit Standards
Loan Authorization
Processing and Disbursement

*Please note: this course is being provided by special arrangements between NADCO and NAGGL and is open ONLY to current and prospective Community Lenders and the service firms that support them. We are able to offer this training at a special rate because of contributions being made by NADCO, NAGGL, Prudent Lenders, and other generous sponsors.

Navigating SOP 50 10

Do your palms start to sweat when you think about finding something in the SOP? Are you always relying on co-workers or industry colleagues to bail you out when you need an SOP citation to respond to that application screen-out? Well this NEW 2-day course could be your perfect solution! We provide a thorough review of the policies and procedures required to successfully originate, underwrite, and approve a SBA 504 loan. Critical training for loan officers, business development officers, credit analysts, and other CDC staff members who want to expand their knowledge of the intricacies of the 504 loan program and how to successfully deliver an approval for your prospects and clients. Includes extensive use of best practices and tips other CDCs successfully utilize.

Topics include:
Introduction to SOP 50 10
504 Loan Program Background
Credit Standards
Loan Structures/Sources and Uses of Funds
Business Eligibility/Affiliation Issues
Project Eligibility Guidelines
    Economic Development Objectives
    Eligible Debt Refinancing
Special Considerations
    National Register of Historic Places
    Combining 504 with other loan programs (i.e. New Market Tax Credit, Industrial Revenue Bonds)
    Change of Ownership Projects
Collateral, Appraisals and Environmental Policies
Loan Application Procedures and Controls
Loan Conditions/Authorization Requirements

PREREQUISITE: “Introduction to SBA 504” or six-months’ experience in a substantive capacity (e.g., loan officer) for a CDC.

504 Loan Packaging

This OVERHAULED AND STREAMLINED one-day class – essential training for loan officers and loan processors – provides a thorough review of the loan application process from the first applicant meeting to the CDC’s internal approval and culminates with the SBA approval. Emphasis is placed on the forms and supporting documentation required for a successful SBA package. We’ll train you to collect the right information, accurately complete the required forms, and successfully interact with SBA for a loan approval. Includes extensive sharing of best practices and pointers from CDCs with the fastest Sacramento Loan Processing Center (SLPC) turn around times in the country.

NEW Topics include:
Preparing the Authorization for Debenture Guarantee
Using eTran
Navigating the franchise registry
Avoiding/Successfully Responding to screen-outs and denials
Preparing 327 amendments

Additional Topics include:
Applicant interview and initial application forms
Sources and Uses of Funds/Loan Structuring
Preparing the CDC Credit Memo
Pre-Application Review forms
SBA Form 1244
Detailed review of all required application exhibits

PREREQUISITE: “Introduction to SBA 504” or six-months’ experience in a substantive capacity (e.g., loan officer) for a CDC.

Credit Risk Institute

The innovative NADCO Credit Risk Institute will give new and experienced CDC credit analysts the “tools” needed to effectively analyze small business financial statements and underwrite SBA 504 loans. The Institute begins with an introduction to financial statements, needed for new analysts, and will progressively take students through the principles and concepts contained in the NADCO Credit Risk Institute Credit Analysis Model. These principles will be reinforced by intensive case studies. Upon successful completion of the Institute Course work, CDC analysts will receive the NADCO Credit Risk Institute Certification.

The Institute will be structured as follows:
Pre-course study:
Online Class: Introduction to Financial Statements
Online Class: Accounting Principles for Credit Analysts
Online Class: Cash Flow Analysis using Tax Returns
Pre-Course Case Study

Four-day Class Session:
Online Class Review
Pre-Course Case Study
The Credit Risk Institute Credit Analysis Model (illustrated using the Pre-Course Case):
    Prescreening Loan Applications
    Management Assessment
    Income Statement Analysis (Ratio, Trend, and Industry Analysis)
    Balance Sheet Analysis (Ratio, Trend, and Industry Analysis)
    The Operating Cycle
    Cash Flow Analysis (“Traditional” and “Indirect” Cash Flow)
    Personal cash flow analysis
    Global Cash Flow Analysis (Business and Personal)
    Start Up and High Growth analysis (Cash budgeting and Projection Analysis)
    Make your decision (How to write a good credit memorandum)
Case Studies (applying the 504 Credit Analysis Model)
    Manufacturing and/or wholesale
    Service business and/or professional
    Startup/major expansion
    Multiple Operating Companies
Final exam

504 Loan Closing

This two-day course is a must for CDC staff and attorneys who are new to closing SBA 504 loans (or who need a refresher), as well as counsel who plan to participate in SBA’s Designated 504 Closing Counsel/Priority CDC program for expedited closings. This case-study focused course will cover the basics as well as practice tips related to the SBA Authorization for Debenture Guarantee (SBA 504 Loan) as well as submitting a complete closing package to SBA’s District Office. The course developed and offered by NADCO’s Attorney Advisory Council. Further information will be offered soon.

PREREQUISITE FOR CDC STAFF: CDC staff must have completed the "Introduction to SBA 504" course or have at least six months’ substantive experience with 504 lending.
There is no prerequisite for attorneys.**

**SBA is tracking the completion of education requirements by Designated 504 Closing Counsel, and NADCO reports to SBA the names of attorneys who attend and complete the "SBA 504 Loan Closing" and "SBA 504 Loan Closing Update" courses. Certificates of completion are only awarded to participants who attend the courses in their entirety.

Attorneys seeking CLE credit for attending this course should contact their state bar association to determine their state bar’s requirements and then complete the application process through their state.

Basic Servicing

This one day course has been rewritten by a team of experts and provides a comprehensive overview of all of a CDC's servicing and portfolio management responsibilities, including monitoring the borrower's financial condition and maintaining tax filings, insurance, and security and collateral filings.

Topics include:
Keys to effective portfolio administration
Fundamental servicing responsibilities
Loan grading/classification
Reporting requirements
Routine servicing actions (including collateral release, assumptions)
Introduction to intensive servicing actions, delinquent and problem loans, collections and workouts

PREREQUISITE: Participants must have completed Introduction to SBA 504 or must have at least six month's substantive experience with 504 lending.

Advanced Servicing

This one day course has been rewritten by a team of experts and provides an in-depth, analytical study of servicing approaches. The ability to effectively manage complex portfolio issues extends far beyond the basic knowledge of policies and procedures and the ability to complete the right forms at the right time. Determining whether a borrower's request to substitute collateral is in the best interests of the CDC and SBA is challenging. Likewise, making sure you are using the correct approach to protect your CDC/SBA from significant loss in these changing times is crucial.

Topics include:
Optimize servicing functions
Servicing reporting systems that keep all parties informed
Evaluating collateral release, substitution and subordination requests
Evaluating requests for partial or complete changes of ownership
Detecting a potential problem loan before it becomes a problem
Balancing the interests of the borrower with those of the CDC/SBA
Managing a defaulted loan from start to finish
Working closely with Fresno/Little Rock Servicing Centers

PREREQUISITE: Participants must have completed NADCO’s 504 Basic Servicing.

Liquidation & Post Debenture Workouts

This 2-day course begins with the debenture purchase and does not include servicing. It is designed to expand and enhance the information contained in the recently introduced on-line series of Advanced Liquidation Modules. It includes lively interaction where CDC participants can pose various liquidation scenarios for discussion. Participants find this course invaluable in making new contacts. It includes in depth discussion on SBA Standard Operating Procedure 50-55 as it pertains to all liquidation activities. Also, learn litigation from a liquidation point of view including when to consider taking legal action to increase liquidation recoveries including assignment of loan documents back to a CDC for the purpose of litigation. Learn what SBA expects from a CDC as it relates liquidation and litigation activities from a regular CDC, an ACL CDC, to a PCLP CDC. The course will include in-depth discussions of SBA guidelines concerning the timing parameters of liquidation and how they affect liquidation. Guidance and discussion of documents needed for various liquidation/litigation actions including short sales, sale of notes, loan modifications and compromises. Class participants are encouraged to bring (or submit to NADCO beforehand) unusual or complicated liquidation cases for class discussion.

Topics include:
SBA’s updated Servicing and Liquidation Matrix
Post-debenture workout/modifications and their accounting
The complexities of note and loan sales
Short sales
SBA referral of borrowers to the Department of Treasury
Administrative Wage Garnishment as a collection tool

PREREQUISITE: "Introduction to SBA 504" or six-months’ substantive experience with SBA 504 lending.