SBA Lending – Fee Income

Project Description:

Problem Statement: Affiliates are not utilizing the benefits of selling SBA loans to secondary market following disbursement. SBA Audit will be focused on following procedures vs. auditing files.

Goal Statement: Document SBA processes and drive the sale of loans to the secondary market. Streamline processes to reduce NVA operations

Start Date: November   End Date: July

Project Metrics

Status: SBA Team on track to meet/exceed Fee Income Goal

Goal: Fee Income $5.0MM; @ $4.2MM YTD

Baseline: Fee Income: $80,000

Project Benefits

Net Savings: $4.2MM

• Direct Savings: Fee Income $ 4.2MM
• Soft Savings:
  • Customer Satisfaction
  • Reduced Lead time & steps (NVA - rework)
  • LO/RM understanding of SBA loans
  • Standard processes for SBA Audit

Realized Savings

• Direct Savings: $3.6MM YTD

Project Accomplishments

• Mapped “as is” processes @ 4 affiliates
• Defined standard “to be” SBA Process
• Team eliminated NVA steps from process (Legal direct)
• Improved Guarantee Fee process (Assigned to Affiliate)
• Completed SOP’s on; U/W & SBA Application, Servicing Closing, Tracking & Disbursement, and Selling to 2nd Market
• Creating Access dbase to sell loans Proactively v. Reactively
• Standard processes; Worksheets, Conditional Approval Letter and Checklist for Borrower, LO and SBA Specialist