Small Business Underwriting

Small Business Underwriting: Evaluation, Underwriting and Policy

Thursday, June 17, 2021
12:00 – 1:00 pm (Eastern Time)

Large corporate borrowers tend to attract many bankers’ attention, but the fact is that many banks find their markets are comprised of smaller, privately held firms.   In fact, these smaller firms number well over 20 million and provide 60% of American jobs.

The challenge of lending to smaller borrowers is how to balance the cost of acquiring them—evaluation, underwriting, approving, monitoring—with the lower profitability inherent in these loans.   Smaller loans have proven to be riskier—the probability of default increases as the size of the borrower decreases and the repayment term increases.

The purpose of this loan webinar is to provide practical guidance on finding that balance and generating prudent profitability.

Topics include:

  • Credit considerations in lending to smaller businesses
  • Fitting small business lending into the bank organization
  • Establishing standardized credit and operations processes and policies for small business lending (SBL)
  • Creating a practical and effective periodic review process
 

Specific Areas Covered:

Credit considerations in lending to smaller businesses

  • Most common types of borrower requests
    • Lines of credit
    • Term loans
    • Commercial real estate transactions
  • Typical underwriting criteria—global cash flow and DSC, acceptable collateral and LTV, guarantees, minimum credit scores
  • Standard “6-pack of smaller business loan products

Fitting small business lending into bank organization

  • Reporting into commercial vs. consumer side
  • Integrating standardized underwriting with decentralized lendin
  • Identifying infrastructure needed to support smaller business lending

Standardized credit and operations processes and policies for smaller business lending


Instructor

Dev Strischek
Devon Risk Advisory Group / Principal
As the Principal for Devon Risk Advisory Group, Dev Strischek brings years of senior experience in financial services to his clients around the areas of risk policy, risk culture, and portfolio risk management. Dev also serves as a Member of the Private Company Council for FASB. Prior to those roles, Dev served for 18 years at SunTrust Bank, retiring as their Sr Vice President and Senior Credit Policy Officer for the bank. Dev is a frequent industry speaker on many aspects associated with credit risk and compliance, as well as loan policy best practices. He has also authored many industry trade articles on principles and practices, problems and issues relevant to risks that financial organizations must manage.
 

Attendance verification for CE credits provided upon request.

Webinar Sponsored by BankersHUB

If you are having issues with registering online, please contact CBAO's Education, Training & Special Event Coordinator, Patti Webb, (614) 610-1877.

 Registration (Member/Non-Member Pricing)

Webinar and Playback* ($295/$445)
*Playback has no expiration. 

Additional Hookup - Registering another banker from a different location ($185/$225)

When
6/17/2021

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