2016 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, support staff or referral agents, who just need a general SBA 504 background.

Topics include:
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


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
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.