SBA 504 Portfolio Management (Loan Servicing)
Advanced Course

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 can very well be a time-consuming, difficult task. Likewise, working with a borrower who has missed two consecutive 504 payments requires a compassionate, but realistic, approach to what could end up being a significant loss to the CDC and SBA.

This one and one-half day course provides an in-depth, analytical study of the three major areas of advanced portfolio issues: collateral actions, changes in ownership, and problem loans. There is heavy emphasis on casework, with many cases derived from experiences of CDCs across the country. Because the subsidy rate for SBA 504 is so closely tied to net recoveries on defaults, special attention will be given to the resolution of problem loans.

PREREQUISITE: At least 18 months' experience in credit administration (loan approval or servicing) at a CDC or commercial lender. NADCO's basic servicing course is not a substitute for experience. Course participants should only include those CDC employees who either are or will be heavily involved with advanced servicing functions, such as working with delinquent or defaulted borrowers, or evaluating (as opposed to simply processing) collateral change and change in ownership requests.

Advanced Portfolio Management topics include:

• Organizing a CDC to optimize the servicing function
• 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
• Preparing a Liquidation Recovery Plan (LRP)
• Working closely with Fresno/Little Rock Servicing Centers

For information on when this course will be presented, if scheduled, click here to view the NADCO calendar of events.

For any additional information, please contact NADCO at (703) 748-2575.