2015 Spring 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 or support staff, who just need a general SBA 504 background.

Topics include:
History of the 504 program
Overview of the CDC industry
Eligible and ineligible projects
Financing structures
Credit, collateral and character issues
The process of getting a 504 loan funded
Economic development criteria
The advantages of a 504 loan


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.

504 Loan Packaging

This course - essential training for CDC loan officers and processors - provides a thorough review of the loan application process, from the first meeting with the borrower through SBA approval. Case studies are used extensively.

Topics include:
Economic development financing
The roles of various 504 players
Eligibility of the business and the project
Deal structuring
Third party lenders
The loan package
SBA Form 1244, line-by-line
Cash flow analysis
The 504 Authorization and the Debenture Guaranty
The loan officer’s report (SBA Form 1245)
The CDC and SBA approval process

PREREQUISITE "Introduction to SBA 504" or six-months’ experience in a substantive capacity (e.g., loan officer) for a CDC, plus "504 Credit Analysis" or equivalent coursework. Basic understanding of SBA 504 loan program and credit analysis is required.