Is Your Bank In Compliance With The Current Small Business Administration’s SOP Regulations?

In several due diligence efforts recently, Ardmore identified a need for community and regional banks to review their SBA portfolios to ascertain if they are following the current SBA Standards of Procedures (“SOP”). Too many banks believed they reduced their credit risk of a borrower by obtaining an SBA guaranty, only to find out that the guaranty was negatively affected by non-compliance with the SOP. Ardmore believes that SBA programs are an acceptable and valid form of lending for banks that have the skills, experience, and processes to perform them properly. The banks that do not display these attributes have an increased risk of loss due to inadequate administration and credit risk. Un

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