Internal Loan Review

Some of our best clients tell us they want an independent, expert “dry run” for their SBA loan portfolio review before SBA comes in to do their thing. Maybe it has to do with that old saying “anxiety is the price we pay for lack of preparation”. Get prepared for your review. Invest in the approach that will help you face the examiners with confidence.

Review and Analysis of Portfolio Risk Management

Review commercial and SBA loan policy and procedures

• Assess lending practices and reports for determination of prudent lending
• Determine lender’s matching of roles to assess effectiveness and efficiency
• Evaluate underwriting and regular servicing of loans

Review of operational management

• Review management/governance of SBA Department
• Assess capabilities and responsibilities of SBA Department staff
• Determine bank responsiveness and efficiency to SBA program changes

Analysis of management of SBA loan portfolio

• Review SBA risk rating lender portal information to provide analysis of trends and peer comparisons
• Analysis of portfolio performance
  • Review size, composition, performance and credit quality of SBA portfolio
  • Evaluate trends in the SBA portfolio
  • Review application forms, SBA eligibility, loan authorization and closing
  • Assessment of credit quality
  • Review servicing actions and lender authority
  • Review liquidation plans and workout procedures
  • On-site exit interview to discuss preliminary findings
  • Includes overview of SBA requirements at time of on-site SBA audit
  • Includes assessment of each individual loan file reviewed on site
  • Provides list of findings to include detailed recommendations

On-Site Compliance Review

Pre-Review Interview

• Communication with SBA Department Management and Bank Management
  • Clarify scope and approach to review process
  • Stage review

Loan Portfolio Compliance Overview

• Review application forms and SBA eligibility
• Review SBA loan authorization and closing documentation
• Assessment of credit quality
• Review servicing actions and lender authority
• Review liquidation plans and workout procedures

Post-Review Interview

• On-site Exit interview to discuss preliminary findings
• Off-site telephone meeting to answer additional questions and provide further explanation

Summary Final Report

• Includes overview of SBA requirements at time of on-site SBA audit
• Includes assessment of each individual loan file reviewed on site
• Provides list of findings to include detailed recommendations