SBA note.... Do you subtract the SBA guaranteed portion from the loan balance prior to calculation of reserves? If so, do you only subtract the guaranteed portion from the pooled loans or from both the pooled and the individually impaired loans?

We are getting conflicting direction and I'm just wondering what the general consensus is.

Based on OCC guidance, unless and until we discover that the guaranty may be unenforceable, the guaranteed portion is deducted from both pooled and impaired reserves.