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COLEMAN: Small Business Lender News of the Day for Monday, August 3, 2026

August 3, 2026

Michigan Business Network

Fed: Small Businesses Turn to Credit Cards as Bank Loan Originations Decline

by Bob Coleman

Founder & Publisher

Louis R. Masaschi, 59, of Longmeadow, Massachusetts, was sentenced to four years in federal prison for a commercial loan fraud conspiracy that caused more than $20 million in lender losses.

Masaschi and his wife and business partner, Jeanette Norman, operated dozens of limited liability companies that owned commercial and residential properties in Massachusetts and Connecticut. Federal prosecutors said they attempted to obtain $60,123,000 in commercial financing between May 2016 and November 2018.

The fraud was built around loan documents that appeared to support one another.

The plea agreement states that Masaschi and Norman submitted “materially false financial information” to banks, credit unions, insurance companies and commercial mortgage lenders.

That information included “false rent rolls” containing inflated monthly rents and lease expiration dates. The borrowers also submitted false profit and loss statements that overstated property income.

The pair also submitted “fictitious documents that supported the false rent rolls,” including lease agreements, tenant estoppel certificates and subordination, nondisturbance and attornment agreements. These documents contained inflated rental payments and forged tenant signatures.

Some packages were delivered directly to lenders. Others went through mortgage brokers.

After the loans closed, the borrowers made some payments or no payments before defaulting. Several properties were left vacant.

Using AI Copilot to Analyze Two Months of Borrower Bank Statements — Webinar Thurs, Aug 6

SBA has instructed lenders that underwriters must now verify repayment ability using actual bank activity. That means underwriters are reviewing two months of business bank statements to confirm recurring obligations, operating activity, and cash flow consistency. And all of it has to be documented in the credit memo.

This material is designed for SBA underwriters, credit analysts, credit officers, and lending managers responsible for repayment analysis and SBA credit documentation.

How Should You Price an SBA 7(a) Loan? Average Pricing Benchmarks by Industry, Loan Type, Risk, and Return — Tues, Aug 11

A 10-year business acquisition loan does not have the same economics as a 25-year commercial real estate loan. Startups, franchise acquisitions, equipment purchases, working capital requests, and business expansions present different risks, operating costs, expected loan lives, and competitive pressures.

Interest income is only one part of the return. Funding costs, origination expense, servicing income, secondary market premiums, servicing strips, prepayment risk, expected loan life, and the capital required to hold the unguaranteed portion all affect profitability.

Lenders must decide when to compete on rate, when to compete on structure and service, and when the expected return does not justify the transaction.

NASLB Winter Summit – November 17, 2026 (Orlando, FL)

Registration is now open for the NASLB Winter Summit on November 17 at the Citrus Club in downtown Orlando. Following the success of the Spring Summit in Las Vegas, this premier event will bring together SBA brokers, lenders, referral partners, and industry leaders for a day focused on networking, deal flow, and growth.

Attendees will hear from leading SBA lenders, top-producing brokers, and industry executives on lender credit appetite, market updates, SBA 7(a) and 504 lending, business acquisition financing, and strategies to get more deals approved and funded. An exclusive networking reception will be held the evening before, making this a must-attend event for anyone involved in SBA lending.