Small Business Lender News of the Day for Tuesday, April 15, 2025
The quote “things change slowly, then all at once” impacted me yesterday. Stretching this into a small business-themed metaphor, the futuristic observation is a takeoff on the Ernest Hemingway quote: “How do you go bankrupt? Two ways: gradually, then suddenly.”
Having lived my entire life in Southern California, I am always intrigued by reading about earthquake prediction and wondering if we will ever master that technology.
Buried among my Amber Alerts and weather notices, I’ve had an earthquake alert app sitting dormant on my iPhone until 10:08 yesterday morning when I got this message:
5 seconds later my home office was rocking and rolling and I heard a few things falling off a shelf in the den.
I was definitely aware of my surroundings and planning how best to dive under my desk in case of a big jolt that could knock my house off its foundation. However, I was actually more shocked and preoccupied by how the warning system worked than by the earthquake itself!
SBA Hot Topic Tuesday — SBA to Verify Citizenship, DOB, Adds Automatic Fraud Alerts
Says SBA Administrator Kelly Loeffler. 
“With the help of DOGE, the SBA has already made a number of common-sense reforms to prevent the rampant fraud we’ve seen over the last four years. Unlike the previous Administration, we respect the American taxpayer and are dedicated to ensuring every dollar entrusted to this agency goes to support eligible, legitimate small businesses. With these simple fraud prevention measures, we will end the abuse of our loan programs – with stronger safeguards to hold bad actors accountable.”
Key changes to combat fraud within the SBA’s loan programs include:
- Citizenship Verification: All SBA loan applications now include a citizenship verification provision to ensure only legal, eligible applicants can access SBA programs. Lenders are required to confirm that applicant businesses are not owned in whole or in part by an illegal alien, consistent with President Trump’s executive order ending the taxpayer subsidization of open borders.
- Date of Birth Verification: All SBA loan applications now include a process to verify applicant age and date of birth. This provision will mitigate fraud stemming from applicants using an identity other than their own, including those of children or the deceased.
- Automatic Fraud Alerts: SBA’s date of birth verification process will automatically flag any applicant claiming to be younger than 18 or older than 115 years of age.
All SBA New Loan Closing Requirements Since January 20th — Webinar 4/23
The flurry of SOP procedural notices changing SBA’s 7(a) Loan program affects the SBA 7(a) loan closer more than any other position.
This Coleman webinar will address all changes up to and including April 23rd. Lance Sexton, our national award-winning SBA loan closing instructor, will discuss all changes since January 20th and unveil a new checklist addendum that all loan closers must use to ensure proper documentation of all changes until the new SOP is issued.
SBA Loan Construction Tariff and Labor Pool Risk Management — 4/29
Join construction risk management expert Kyle Gustafson as he discusses important factors for you to consider in underwriting, closing and funding your SBA 7(a) and 504 loan construction loans. And that projects are completed on time and within budget.
Done correctly, construction lending is an excellent product niche for the SBA lender. Unfortunately, failed construction projects blow up spectacularly and leave the lender scrambling for payment of the guaranty from SBA.
