Last year, SBA's Inspector General issued a scathing audit criticizing Banco Popular for its underwriting procedures for the franchise, Huntington Learning Centers.

The IG wrote that the bank failed to properly analyze and underwrite applicant projections.

This failure warrants the denial of the SBA guaranty for all of the bank's Huntington Learning Center franchise loans says the OIG.

While SBA's Inspector General is not the final arbiter of SBA's policies and procedures, it is a necessity that SBA lenders understand their thinking in order to ensure the validity of their SBA guaranties.

In response to the Inspector General report, we have scheduled this webinar that will carefully examine the audit so that you will have the necessary current information to craft your institution's credit box with respect to franchise start-up loans.

What you will learn:

A careful analysis of the Inspector General Audit and how it affects you

A review of SBA's "repayment ability" standard

Best practice guidelines of what lenders must do in analyzing borrower projections

What resources lenders must use in analyzing borrower projections

How the Inspector General views projections in repayment ability for mom and pop start-ups

How the Inspector General views projections in repayment ability for franchise start-ups

What the Inspector General defines as "Unrealistic Revenue Projections"

"Common sense" tests banks should perform to analyze strength of borrower projections