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      Welcome to the SBAadvisors Blog!

      Dec.
      11 th

      The Top 5 Requirements to Starting or Expanding an SBA Lending Platform: #2 PLAN, part c

      By Tim Terry |

      How Much Does It Cost to Get Started and When Should We Expect to Break Even?

      With any new business plan, we want to know all about the investment needed and the timeline to profitability.  As a Commercial/SBA Lender, you need this knowledge to determine the credit strength in any new deal.  When a bank is considering investing in a new SBA lending platform, it is just as vital to fully understand the costs associated, the variables involved and the timeline to profitability.  Recently, one of my new clients told me that they had already completed the “budget” for a new SBA lending initiative at the bank.  Like many created “budgets”, it was a quick view of what was to be expected.  Adequate for exploratory purposes, but not when you decide to commit to an SBA lending platform.

      I was asked by this client to complete a 3 year SBA departmental budget. When completed and compared to the budget created by the bank, they could not have been more different.  I completed two models for 3 years each. The first showed results based on holding all the loans.  The second model showed results based on selling the SBA guaranty portion on the secondary market.  You can probably guess which one made money in the first year and which one did not show a profit until late into the second year.

      There are so many variables that need to be considered in an SBA budget:

      1. Forecasting how many loans to be approved and funded in each of the 3 years.
      2. What average loan size to anticipate?
      3. What average pricing on the loans should be targeted?
      4. How many days or weeks from initial approval to a closed and funded loan?
      5. What incentive should be paid to commercial lenders for doing an SBA loan?
      6. Should we pay broker fees and how much?
      7. If we sell the SBA guaranty, what average pricing should be expected?
      8. Should you charge a packaging or processing fee and if so, how much?
      9. Should we totally staff the department or utilize a Loan Service Provider (LSP) until loan production proves full time staff are necessary?
      10. Who and what skill sets are needed first as you get started and how much will they cost?
      11. What percentage of total loan production should be calculated for Loan Loss Reserve?
      12. What should be spent on marketing?
      13. Should we just use internal commercial lenders or hire dedicated SBA lenders?
      14. What incentives and how much should be considered for SBA BDOs?
      15. What other “best practices” should be accounted for including software, training, etc.?

      And there are many other questions or variables that need to be taken into consideration.  But when the budgets are completed, management can have a very clear understanding of the costs involved and when and what and how much money can be made in each of the first 3 years.

      Solid information for making sound decisions about starting and growing an SBA department makes a huge difference in those new SBA lenders who succeed in a big way and those that don’t come close to meeting expectations.

      (For more information and assistance in developing an SBA department budget, please contact Tim@SBAadvisors.com)

      “The Top 5 Requirements to Starting or Expanding an SBA Lending Platform” written by Tim Terry, CEO of SBA Advisors.

      Filed Under: Blog, Consulting, Marketing, SBA News, Staffing, Uncategorized Tagged With: SBA, SBA 504, SBA 7a, sba advisors, sba advisors updates, sba consulting, SBA departments, sba job search, SBA jobs, sba lender, SBA lending, sba lending budget, SBA lending programs, sba loans, sba search, SBA7a, sbasearch, seo, tim terry

      Welcome to the SBAadvisors Blog!

      Jan.
      28 th

      Press Release January 26, 2014

      By Tim Terry | Leave a Comment

       SBAadvisors announces new SBA “tradigital” marketing programs to SBA lenders across the country.

      Dallas, TX – Today Tim Terry, President of the 22 year old firm, SBAadvisors, Inc.  announced the addition of new marketing services to banks seeking to grow their SBA government guaranty lending.  “Having set up 10 SBA lending programs for lending institutions across the country, it is exciting for the company to now offer what has been missing in the industry; SBA loan marketing support!”

      The general public’s view is that banks do not want to lend to small business and those that do, make the process very difficult.  SBAadvisors can now assist the banks that are seeking to change this attitude and attract small business customers.

      Tim reports that the Small Business Administration (SBA), has released new policies and procedures to enhance and simplify the process for banks to use the SBA program to help small businesses.  “In many ways, these new policies show that the SBA is working hard to help banks to get needed capital into the hands of credit worthy small businesses.  Lenders need to make small businesses aware of these significant advances.”

      While banks are very strong in marketing for auto and home loans, they have yet to apply efficient marketing approaches to reach out to small business.  SBAadvisors is now offering “Tradigital” marketing strategies for lenders to be able to reach the small business sector.  This is a combination of traditional marketing approaches of radio and print advertising with digital approaches utilizing new SBA branded websites along with advanced SEO (search engine optimization).

      Many ad firms are telling banks that traditional marketing approaches of print and radio are no longer effective.  The overwhelming focus is now on SEO strategies.  While SEO is a mandate, print media cannot be ignored.   Customers do like the ability to hit a button and submit an inquiry or an application, but print media can drive customers to the website in more cost effective ways than pay per click.

      SEO works.  However, it can take six to twelve months before you show up on the first page of a search engine.  Print ads provide an immediate branding specific to the desire to pursue small business loans.  A combination of both digital and print is a mandate for any level of immediate success.

      About SBAadvisors

      SBAadvisors is a national consulting firm that specializes in support services to SBA lenders nationwide.  While the company has a national reputation as the largest executive search firm that is SBA employee specific, it has also actively involved in setting up new SBA lending departments from coast to coast.  The new division of tradigital marketing services completes the strategic services needed to become a contender in the hotly competitive bank environment.  To learn more please visit the company website:  www.SBAadvisors.com

      Contact

      For more details please contact:
      Tim Terry, President
      SBAadvisors, Inc
      940.381.6200
      tim@SBAadvisors.com

       

      To see original press release, go to: http://www.pr.com/press-release/538838

      Filed Under: Blog, Marketing, SBA News Tagged With: press, sba advisors, sba marketing, sba website, seo, tim terry, traditigal marketing

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