SBA One Tips & Tricks Wisconsin Lenders Conference 2017 SBA Simplified LLC May 18, 2017

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1 SBA One Tips, Tricks & Issues May 18, 2017 SBA Lender Training Wisconsin Dells, Wisconsin Presenter: Coralie Myers 1 Points to Remember About SBA One A Work in Progress Give SBA.One@bnymellon.com Populates SBA application forms Replaces Authorization Wizard Lenders ultimately responsible info@sbasimplified.com 2 About This Presentation Pros & Cons of Guided Path vs. Expert Path How to input collateral in SBA One to get the results you expect Document Management Overview of issues and some solutions Where to go for information & help info@sbasimplified.com 3 1

2 Guided vs. Express Path Guided Path Any loan type (except 504) Non delegated lenders must use Usually optional for delegated lenders All loans going to the LGPC MUST use the Guided Path Expert Path Optional for Delegated Lenders only Optional for PLP & SBA Express 4 Picking a Path Creating a Loan info@sbasimplified.com 5 Picking a Path Pros & Cons Who is inputting your loans? Do they know as much as you do? Will you be doing any companion loans? You can t copy a loan from a different path Are you sure it won t have to go to the LGPC? Guided path MUST be used for loans going through the LGPC Are you sure you remembered all the documentation requirements? info@sbasimplified.com 6 2

3 Check the Navigation Bar First If the section is not checked, that Section is not Complete! Sections: Primary Eligibility Eligibility, About the Business Eligibility Principals/Guarantors Terms & Conditions Lender Contact Underwriting Credit Analysis Collateral Insurance More when applicable 7 Why Isn t It Working Right? Possible Causes Did you remember to hit Continue at the bottom of the page after you made changes? If you made changes in the early part of the program, you might have to re-enter data in a later part if it changed things Re-check the navigation bar. Do you have the authority to take the action? It might not be you check with BNY Mellon to see if others are having an issue 5/17/2017 SBA Simplified LLC info@sbasimplified.com 8 Eligibility The Basics If the Loan is to an EPC, you MUST input the EPC name as the Borrower HERE or you will have to go back and re enter data. info@sbasimplified.com 9 3

4 About the Principals if the Guaranty Is Secured 10 Collateral Input 11 Collateral Summary Table Detail MUST be completed to 12 Save this Section & Advance 4

5 Commercial RE Detail 13 Residential RE Detail 14 Equipment Detail 15 5

6 Collateral Summary w/ Detail Note that after the detail information was saved, SBA One reordered the listing so that collateral with the same owners were grouped together. 16 Additional Collateral Input This answer determines what you see next 17 Additional Input Residential RE Only select Title and/or Lien search if you are NOT depending on the property as collateral and it is being taken as an abundance of caution. 18 6

7 Additional Input Residential RE SBA One gives you choices on the types of policies & options available depending on where the collateral is located (State/Territory). 5/17/2017 SBA Simplified LLC 19 Additional Input Commercial RE 5/17/2017 SBA Simplified LLC 20 Additional Input Liquor License 21 7

8 Additional Collateral Input If this is an EPC/OC loan, answer this no. EPC/OC lease requirements will appear in the collateral section as a result of data put in the Borrower Section. Triggers Authorization Language. HOWEVER, lender is still responsible for complying with the SOP even if not shown. info@sbasimplified.com 22 Limiting Liens Just because the program lets you limit collateral doesn t mean you should. CHECK THE SOP! According to SOP , you can only limit liens for residential and investment properties in certain instances. info@sbasimplified.com 23 Additional Collateral Input Appraisal amounts required in the Loan Authorization are generated from the Detail Section in the Collateral Summary If you answer Yes in Guided Path If you answer No in Guided Path info@sbasimplified.com 24 8

9 Additional Input Environmental Note: Correctly completed Environmental questionnaires are required even if you do an environmental audit! 25 If Going to the LGPC Lender must upload ALL documents and financial statements according to the normal 10-Tab Format Use naming convention noted on SBA website. Upload your internal credit memo under Tab Schedule of Collateral Tab 2 Lender Credit Memo contains only the Schedule of Collateral and must match the internal credit memo you upload. info@sbasimplified.com 27 9

10 Draft Authorization Review to confirm all required items are included BEFORE you submit to E-Tran Changes can be made up to the point you get a loan number, then loan file is frozen Express & 7a Authorization Boilerplates are now the same Lenders are responsible for compliance with the SOP even not required in the Loan Authorization. info@sbasimplified.com 28 Collateral Section Authorization info@sbasimplified.com 29 Collateral Section Authorization info@sbasimplified.com 30 10

11 Collateral Section Authorization Failure to follow EPC/OC lease requirements can result in DENIAL! EPC/OC Lease Requirements 31 Final Authorization SBA One sends an with Authorization number when approved. Print final authorization and have signed. The Lender is still responsible for preparing the Borrower s Certification & inserting applicable paragraphs. (example: Credit Cards all used for business.) After approval, you have the option of printing what you put into the system before moving on to the Closing Section. info@sbasimplified.com 32 Document Management SBA s 10-tab format for Applications is used to organize the forms for each loan. Data you enter fills in the SBA Forms The IRS 4506 form is partially filled in. You still need to enter your institution s contact information, print and submit. System generated forms can be updated until submitted to E-Tran. info@sbasimplified.com 33 11

12 Document Management Tab 34 Document Management 10 Tab 35 SBA One Issues Simple to copy a loan, but no way yet to delete it. The only way to tell the difference is the Control #. It will sometimes ask you to explain refinancing within 6 months of a change of ownership even if not done Must enter $1 or more on collateral in table: (E-Tran will not accept a zero value.) "New" or Used is shown on Equipment in Authorization do NOT limit in Security Agreement or UCC from Table info@sbasimplified.com 36 12

13 SBA One Issues The system will generate 2 - SBA1919s if the individual is a member of an EPC and OC - Each shows ownership of a different entity. The authorization only shows one guaranty per person however. This is not a defect, but may be different than what you have done in the past. Assignment of Lease not always showing in the Loan Authorization still needed if fixtures or leasehold improvements, or an explanation if not obtained. If affiliates, the program selects the borrower or EPC as the primary business for size standards, which may not be correct. This may affect eligibility. info@sbasimplified.com 37 Solution to a Recent Challenge Challenge/Problem: You must provide now provide identification information (SSN, EIN, or Alien Registration) on 90% of ownership, not 80% in E-Tran. If over 10% is owned by a foreign national, they cannot get a social security number or alien registration number. The Solution: Have them get a tax id number SBA One will not process otherwise. info@sbasimplified.com 38 Refinancing Existing SBA Loan Challenge Challenge/Problem: When computing maximum guaranty it doesn t remove debts being refinanced which can cause the system to reject the loan. The Solution per the LGPC: Log into ETRAN and Search for the application that received The Aggregated SBA Loan Requested Amount exceeds maximum message. Click on the Validate button and correct any errors listed. Depending on how much your loan amount exeeds the total, you may be able to correct the aggregate error by lowering your guaranty percentage. *Please note: ETRAN does not allow you to lower your percentage to below 10%. info@sbasimplified.com 39 13

14 LGPC s Solution continued info@sbasimplified.com 40 Find Updates on SBA One info@sbasimplified.com 41 SBA One Lender Guide Learn how to: Get Access to SBA One Identify access for Lender Roles Learn what the icons mean Navigate in SBA One Use DocuSign Use PARRiS Scorecard _Lender_Guide_Version_3.0_-_ pdf info@sbasimplified.com 42 14

15 Remember SBA One is a Work in Progress Contact sba.one@bnymellon.com with suggestions and issues. The programmers are not lenders. They won t know there is a problem unless you or SBA tell them. SBA One is not a substitute for the SOP Input in SBA One populates the authorization and other documentation. info@sbasimplified.com 43 Remember Collateral ALL Collateral must be input into the table to appear correctly in the loan authorization If, as a delegated lender, you eliminate a requirement (i.e. lease for the term of the loan, lease assignment) DOCUMENT in lender credit memo or file Regardless of what is in the authorization, the lender is required to follow the rules in the SOPs. info@sbasimplified.com 44 Who We Are info@sbasimplified.com 45 15

16 Questions? How to Reach Us: E Mail: info@sbasimplified.com Main Phone: (509) SBA Simplified members direct phone # s: Pat Johnson: (208) Lisa Lerner: (602) Coralie Myers: (509) info@sbasimplified.com 46 16