Are You Struggling to Attract All-Star SBA BDOs?


The new year is upon us already. Man, 2018 sure flew by, didn’t it? SBA had another great year. All indicators two months ago were that 2019 is going to continue to be a great year as well. However, in the last couple of months, some things changed and it appears that SBA lending will slow a little.

Because the economy is still strong, business is exchanging hands and people are still willing to venture out on their own to open their own shingle. Those things will help the SBA space for 2019. I just read a couple headlines and predictions that by the end of 2019, we will be back in a recession. Now is the time to find the best shop that will continue to lend during a recession in the event that we are heading in that direction.

Finish your deals while you can

Many BDOs are looking for safer shops that are large and don’t have to sell the loans on the secondary. Most BDOs are trying to find the fit that can get their deals done. As I always tell all the BDOs and Managers, that if you’re at a shop that gets your deals done, you need to stay put. Unless there are other circumstances that are forcing you to leave.

If your bank is being bought by an institution that doesn’t really do SBA lending now, you probably need to find a new home before the deal finalizes or you might be holding a bag of deals that can’t get done at the new bank. As a recruiter, SBA is such a passion for me! Even though I’m not a lender, SBA is the backbone of the U.S., it’s fascinating to me. They drive growth, change, and innovation in the larger companies and support local economies immensely.

Ensure the deals are getting done

As a company, if you’re looking to retain your best talent, you need to make sure the credit side is great and the deals are getting done. If you are saying no too often, you will start losing your top producers and will only be able to capture C-quality talent. These producers talk a big game but don’t produce all that much. You want someone that talks to so many other banks that can help you with ideas on how to make things better for your BDOs without increasing the expense side of your budget.

I just worked with a new shop and helped them build an SBA program. They had some ideas but were way behind on deals and compensation structure. I worked with them and now they have a competitive structure. With this new structure, they captured a huge hitter that is getting SBA deals done. I also just worked with a Director of SBA for a top 100 7a shop in the nation. We worked together to change the incentive plan to be competitive, even if they decide to hold the loans.

Let’s work together

If you’re struggling to retain or capture talented BDO professionals, let’s have a conversation. I will work with you and your team to make your shop recruit your next all-star lender. Or if you are a BDO looking for your next home, reach out to me and let’s find you a shop where you can get your deals done efficiently.