I spent three days last week at the Great Lakes Lenders Conference in a small college town in central Ohio. My family and friends asked if I needed an intervention when I sent photos from mid-field at Ohio Stadium. Although it was an informative tour of the historic stadium, it could not compare to being on the field at the Big House, whether after the annual 5k or after an inspiring defeat of that team from Columbus. However, I was able to set aside my biases to make meaningful connections and obtain valuable resources in the lending world.
All joking aside, I want to congratulate the Economic & Community Development Institute, for sponsoring a fantastic conference and for its 20th anniversary as a leading microlender and Community Development Corporation in the small business lending sphere. Based in Columbus but spread across the region, ECDI highlighted its record of success spawning and mentoring small businesses by lending to underserved and underfunded communities. ECDI’s innovation and determination, particularly during the pandemic, provided that all-important spark to a wide variety of endeavors—from a taco truck turned regional caterer to a healthy-ingredient focused confectionery to a trash hauler in southern Ohio.
Almost 500 individuals—lenders, community development reps, local officials, SBA employees, and vendors—attended the conference. Beyond the fantastic opportunities to network, I obtained the latest specific updates on calling an SBA guaranty, best practices in SBA lending, utilizing resources to prevent loan defaults, and strategies for managing loan liquidations.
At the risk of over-simplifying it, there are two key advantages of SBA financing: providing funding to small businesses that need it (“No money, no business”), and offering a safety net to the lending institution with a guaranty that the SBA will purchase on the back end. There are important steps that a lender and its counsel must take—from origination through the liquidation process—to preserve its right to the guaranty.
I’ve been privileged to work with clients in litigating, modifying, and consolidating obligations with SBA guaranties. Contact the Banking and Financial Institutions Team at Dalton & Tomich today to discuss any lending relationship, regardless of SBA status. We will analyze your options and advise you at every step, from origination to liquidation.
