Dates of Event & Pricing

$295 for Webinar and Playback*

*Playback has no expiration.

  • Tuesday, February 2, 2021

  • 12:00 – 1:00 pm (Eastern Time)

  • 11:00 – 12:00 pm (Central Time)

  • 10:00 – 11:00 am (Mountain Time)

  • 9:00 – 10:00 am (Pacific Time)

Curriculum

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.

Description:   This loan webinar’s agenda includes the following:

  • 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)

 

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 lending
    • Identifying infrastructure needed to support smaller business lending


  • Standardized credit and operations processes and policies for smaller business lending
    1. Scope—market served, transaction/exposure limit
    2. Roles and responsibilities—relationship managers, analysts, underwriters, loan documentation, loan operations, credit administration
    3. Loan processing—financial information requirements, credit package
    4. Analysis and underwriting—time in business, appropriate guarantees, satisfactory credit history, minimum credit scores, minimum DSCR, collateral LTV’s, maximum term and amortization, minimum liquidity, risk rating,   appraisal and environmental requirements
    5. Conditions and covenants—bank depository account, no additional borrowing, no liens, taxes current
    6. Approval—pricing, policy exceptions, doc exceptions, overrides
    7. Loan documentation—demand vs. time note, standardized loan docs vs. attorney-prepared docs, 
    8. Monitoring—asset quality, risk rating migration, credit score changes, stale annual reviews, continuous monitoring, policy exceptions, loan doc exceptions, stale risk ratings
    9. Problem asset management—bankrupts, deceased borrowers, all substandard loans, 90-day past-dues, non-accruals, charge-offs, OREO
    10. Pricing and policy discipline 

Instructor

  • Dev Strischek

    Dev Strischek

    Devon Risk Advisory Group / Principal


    A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek is principal of Devon Risk Advisory Group based near Atlanta, Georgia. Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc. Dev is the former SVP and senior credit policy officer at SunTrust Bank, Atlanta. He was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. Prior to SunTrust, Mr. Strischek was chief credit officer for Barnett Bank’s Palm Beach market. Dev is also a member of the Financial Accounting Standards Board’s (FASB’s) Private Company Council (PCC).

Credits

1.0 CPE Credits & 1.2 AAP Credits