MILLIONS AT STAKE 🚨 What We Learned the HARD WAY (So You Don't Have To!) | July 1, 2025

Welcome to a very special episode of SBA Today! Join hosts Paul Long and Tonya Mazurek as they bravely pull back the curtain on the "educational moments" – or as Tonya calls them, "OH CRAP MOMENTS" – that every professional in the SBA lending industry faces. 

In this candid discussion, Paul and Tonya reveal real-world experiences and share hard-earned lessons on:

• Credit Pull Timing: When is the right time to pull credit? Before or after a term sheet? Tonya shares why she prefers not to pull credit upfront and encourages customers to check their own.
• Business Acquisitions & Valuations: Do a "quick and dirty value" to understand the ballpark of a business's worth and identify potential missing assets or major add-backs. Beware of improper add-backs, like personal expenses!
• Low Credit Scores & "Good Stories": Tonya shares her experience with "story lending," especially for those with unforeseen credit issues like medical bills. While the SBA is silent on credit and it's lender discretion, structuring deals with more collateral or equity can strengthen challenging situations. 
• Underwriting Cash Flow Errors: These are "extremely common" and why lenders must review credits carefully. Mistakes can happen, like transposing numbers or misinterpreting add-backs. Pre-flights and quick cash flow analysis can help prevent these errors. 
• Seller Notes on Full Standby Being Paid (Quietly): While "to my knowledge of course not" for their deals, Tonya acknowledges that outside-the-system payments can happen without the lender's awareness. 
• Turning Down Deals on Ethics: Both Paul and Tonya agree this is crucial. If there's a "red flag at the beginning," expect more later. Tonya prioritizes the borrower first, even referring them to other banks if a traditional loan is a better fit. 
• Post-Closing Paperwork & "Eating Crow": It's common to go back for signatures or paperwork after a deal closes , and as the "face of the bank," sometimes you just "gotta swallow it" and admit a mistake. 
• Missed Loan Fees or Vehicle Taxes: Paul admits to getting "caught multiple times" on these, especially with large vehicle purchases where taxes can be a significant, easily overlooked number. 
• The Deal You Wish You Hadn't Done: Tonya shares a heartbreaking story of a restaurant startup before the pandemic, where despite bank support, unforeseen challenges led to failure. Paul recounts a similar situation with an older individual who had to sell their paid-off home. These stories underscore the emotional toll and importance of empathy in the business. 
• The Importance of Conversation: Tonya passionately argues against just telling clients to "put in a loan application." Having a real conversation upfront helps understand their needs, prevents wasted effort, and avoids unnecessary credit pulls.

Don't miss a beat! Join us live every Tuesday morning on LinkedIn and YouTube! Catch up on previous episodes and explore our family of podcasts: "The BDO Show" and "Art of SBA Lending."

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⚠️ Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ⚠️