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#805435 - 08/29/07 10:18 PM Anyone experience a recent SBA Audit?
fmissle Offline
Platinum Poster
Joined: Jul 2007
Posts: 955
Pac NW
I'm running our newly formed centralized SBA documentation dept. We will be handling the prep of SBA docs, getting an SBA guarantee #, and auditing the file for required docs after closing.

The dept. who is currently doing this is stressing the newly announced SBA audits beginning this year (I personally think they're overstating the frequency of two times a year). Does anyone have any experience with SBA Audits or has anyone heard anything about them starting a new audit program? With the continued budget cuts, I would be suprised to get audited every other year.

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#816507 - 09/17/07 05:40 PM Re: Anyone experience a recent SBA Audit? fmissle
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Worked at the last place for seven years - - - one audit. Been here three - - - no audits.

I must admit that I was surprised at how in-depth they were. They sent more people than I expected and REALLY went thru each file with the fine toothed comb. They made a checklist against the original guarantee authorization and went to work. Then they checked for follow through - - collecting financial statements, tax returns, updated insurance. Any missed years were noted not just the lack of a current statement. They looked through officer comments to see how frequently loan officers were meeting with the borrowers, etc.

Finally, they performed a mini "loan review" on current credit quality of a large sample of the SBA loans.

They were pit bulls on the post-audit follow up, too. I know our loan admin dept was getting a fax every week with the list of outstanding items.

Hope this helps.....not a recent audit.....maybe 2003?

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