, As 2022 winds down...

Greetings!

December brings reflection on the past year, and preparation for the new.

How did your year go? Did you meet your goals?

What are your plans and goals for next year? How will the new SOP 50 10 6.1 (if it’s ever issued!) impact those plans and goals?

Like you, we reflect and plan as well. Like you, we are anxiously waiting for the new SOP so we can make the appropriate adjustments to our plans and goals – and help our clients make their own adjustments.

And as the year closes, we – Lori and Rebecca – want to thank you, our readers and clients, for being part of our SBA Lending community. We wish you a delightful holiday season, and a prosperous 2023.

LRM's December 2022 Notice Nook

Proposed Rules: Affiliation and Lending Criteria for the SBA Business Loan Program issued 10/26/22. Comments due on or before 12/27/22

Proposed Rule: Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization issued 11/7/22. Comments due on or before 1/6/23

Standard 7(a) Authorization File Library issued 11/2/2022

Independent Auditor's Report on SBA's Fiscal Year 2022 Financial Statements issued 11/15/2022

SBA Franchise Directory issued 11/17/2022

2022 Weekly Lending Reports issued 11/18/2022

OIG Semiannual Report to Congress issued 11/29/2022

About those Proposed Rules!

As part of preparing for the new year, we encourage (a.k.a. beseech and implore!) you to read the Proposed Rules issued by SBA on 10/26 and 11/7 and linked above. It’s important for you to understand the proposed changes and provide SBA with your comments. While these rule changes may streamline and simplify things for SBA, they may not for you, the Lenders. Make your voice heard and send in your comments!

The Affiliation and Lending Criteria rule changes include changes to how proceeds may be used. It’s a full 11 pages of small print, as SBA notices tend to be. And we highly recommend that you read it in full, so you can be aware of how the proposed changes might impact your loan process.

Comments on these changes are due on or before December 27^th, 2022. You can submit your comments through the website address listed in the proposal immediately after the Summary section.

The Small Business Lending Company (SBLC) rule changes are a tiny bit simpler (is any SBA rule “simpler”? We think so; some are just a little shorter and easier to read). This proposal includes changes to the moratorium on licensing new SBLCs and creates a new entity, the Mission-Based SBLC. Curious about what that is? We were too – and to encourage you to read the proposal, we’ll leave it up to you to go do exactly that in order to find out!

Comments on these changes are due on or before January 6, 2023. You can submit your comments through the website address listed in the proposal immediately after the Summary section.

Want some help interpreting these proposals?

We can do a review and analysis of your business to see how these rule changes might impact your processes and procedures.

Call us at (877) 576-0819 to schedule a time for a brief conversation about how this might work.

LRM December Announcement

Please note we will be out of the office from 12/26/2022 -1/2/2023. We will respond to all messages and correspondence when we return to the office on 1/3/2023.

If there’s anything you need prior to then, please let us know as soon as possible!

THE LATEST NEWS FROM OUR BLOG

The Perils of Inexperience

By Lori McCausland

The number of new business startups in the last few years simply exploded previous records.

And that means more business owners than ever before are seeking SBA support.

But with the mass exodus from traditional jobs, the next generation of talented SBA lenders may have a hard time finding mentors.

Which means you, dear Lender, may be at risk. If your staff are new to SBA lending, you could be exposed to costly mistakes – even if you have robust processes and procedures in place.

Some Facts of Life for SBA Lenders:

There will always be …

Rule changes
Loan reviews
Defaults to be dealt with and repairs to be handled
New people to be trained
Updates to processes and procedures

And there will always be …

Happy Borrowers with thriving businesses, who are
Grateful to you for helping them create something meaningful

What matters is how well you anticipate and plan for these (and more) facts of life – and how consciously you recognize and help your team to acknowledge the good you’re doing in the world, the ways you’re helping small business owners realize their dreams and serve their communities.

Let us know how we can help; call (877) 576-0819, or reply to this email, or use our website Contact form.

Follow us on LinkedIn to get our most recent blog posts. Check out the Blog page on our website. Call us at (877) 576-0819 to discuss how we can assist you.

Your Team at LRM Lender Consultants,