WINDSOR ADVANTAGE’S Q&A CORNER
SBA Notes of Interest By Connor Mulvey, Windsor Advantage
flow. Many have focused on 2019 versus 2020 in this analysis.
Post-COVID and SBA Underwriting Today
2. What impact has COVID and the Delta Variant had on the business?
SBA Underwriting has changed since COVID and as a result, many lenders are wondering what is prudent lending in the eyes of the US Small Business Administration. We have received a few questions on how best to approach SBA borrowers today.
Analysis today must focus on management’s ability to adjust and compensate for any reduction in revenue, supply chain management or staffing considerations. Even some of the most stable businesses have been impacted. We encourage you to discuss any restrictions that have impacted the borrower’s cost projections, access to supplies or inventory. The SBA has a COVID questionnaire that you should continue to utilize, especially with the increased uptick in infections.
1. What areas of underwriting does the SBA consider relevant today versus two years ago? In your credit memo, you must address the impact any other loans (PPP, EIDL) could have on the cash
3. What industries have experienced the greatest negative impact from COVID? • • • • • • • •
Event Planners Live Venues Fitness Centers Day Cares Spas & Salons Office Furniture Full-Service Restaurants, Bars Pet Boarding
4. What industries have had limited negative impact from COVID? • • • • •
Dentists Medical Practices Pharmacies Auto Repair Gas Stations & Convenience Stores
sary r e v i n n A Fifth
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• January-February 2022
