AGING SBA PORTFOLIO?
KEEP YOUR FINGER ON THE PULSE.
5 first steps to take when dealing with
a distressed portfolio.
One of the top priorities in an SBA Department is keeping your fingers on the portfolio’s pulse.
As a portfolio ages, it will inevitably develop cracks. There may even be multiple loans that stress or default at the same time. The key to handling these situations is, first, don’t panic! More importantly, have an established process and procedure for your team to address each loan.
We are often asked, “Where do we start?”
It’s not always a simple answer, because each loan has its own personality and the Borrowers don’t always keep you in the loop - and then you find yourself scrambling to catch up to stay in compliance.
That said here are LRM’s Five First Steps when a loan shows stress or default.
