Bob Coleman

SBA Rescinds Non-Citizen 5% Ownership Rule Effective March 1, 2026, this Notice rescinds SBA Procedural Notice 5000-872050, removing the narrow exception that allowed a Borrower to have up to 5% ownership held by foreign nationals, or U.S. Citizens, U.S. Nationals, or Legal Permanent Residents (LPRs) whose Principal Residents was outside of the United States, its territories, or possessions. Further, and beginning with the Effective Date of this Notice, Legal Permanent Residents (LPRs) will not be eligible to own any percentage interest in an Applicant/Borrower, OC, or EPC. Read notice here: sba.app.box.com/s/clnfboz29gvs… #SBA #SBALending #SBACompliance #BorrowerEligibility #OwnershipRequirements #ForeignOwnership #NonCitizenOwnership #LegalPermanentResidents #RegulatoryAlert #SmallBusinessLoans

Franchising’s 5.5% Employment Impact on the U.S. Economy Last week, the House Committee on Small Business held a hearing titled “Local Ownership, National Brands: How Franchising is a Pathway to Entrepreneurship.” The discussion reinforced what many of us on Main Street already know: franchising remains one of the most accessible and scalable pathways to small business ownership in America. Today, an estimated 831,000 franchise businesses operate nationwide, employing nearly nine million people—approximately 5.5% of total U.S. employment—and contributing $550 billion to U.S. GDP. Chairman Roger Williams highlighted how the franchise model equips entrepreneurs with proven systems, training, and support—reducing barriers to entry while strengthening local economies. With tax reform, deregulation efforts, and improved access to capital, franchising continues to empower business owners to invest in their teams and communities. Testimony from franchise operators underscored several recurring themes: • Veterans leveraging military discipline and SOPs to succeed as franchise owners • Employees advancing from frontline roles to business ownership • Franchisees acting as long-term stewards of their communities • Strong economic impact in rural and underserved markets Having grown up in a family business rooted in franchising for over 80 years, I’ve seen firsthand how this model benefits consumers, manufacturers, and most importantly, local communities. Franchising works because it combines local ownership with national-scale systems. When policymakers support entrepreneurship, Main Street wins. Read more here: colemanreport.com/main-street-mo… #MainStreetMonday #Franchising #SmallBusiness #Entrepreneurship #EconomicImpact #JobCreation #VeteranOwnedBusiness #CommunityGrowth #AmericanDream #SmallBusinessOwnership

SBA’s Deputy Inspector General Sheldon Shoemaker is flagging a key 2026 challenge: stronger oversight of nonbank lenders, loan service providers (LSPs), and loan agents -- especially as SBA balances access to capital with program risk. The OIG’s bottom line: SBA must continue to • Enhance oversight of program lenders • Strengthen oversight of third-party providers (including agents lenders rely on) • Respond faster to emerging risks to reduce losses and protect integrity SBA’s Office of Credit Risk Management is managing risk across guaranteed loan portfolios totaling ~$163B (as of June 2025). Nonbank lenders (often not supervised by other federal regulators) require more direct SBA examination. OIG’s prior work also points to heightened fraud risk in PPP channels: • Nonbank PPP lenders originated $14.2B in suspected fraudulent loans, at a rate 5x+ traditional banks • Nearly $6.1B (43%) of that was tied to fintechs and state-regulated finance companies • Loans involving service providers showed a suspected fraud rate 3x+ loans without them SBA has improved tracking and monitoring of third-party providers, and OIG says it will keep watch on compliance and corrective actions. View SBA OIG Report here: colemanreport.com/wp-content/upl… #SBA #7aLoans #SmallBusinessLending #Fintech #CreditRisk #ProgramIntegrity #LoanAgents #Regulation #Compliance

A Coleman Conversation: David Parrish In this week’s episode of A Coleman Conversation, I spoke with David Parrish, former SBA leader and longtime federal regulator, to discuss his nearly two-decade career at SBA and his transition into private-sector consulting. David reflects on the weight of accepting the federal government’s deferred resignation offer, explains why the SBA secondary market is essential to the strength of the 7(a) program, and shares what he learned from working across major SBA lending programs including SBIC and 7(a). He also details the career path that led him from international loan workout work at the Export-Import Bank to SBA oversight roles, including his leadership of the Secondary Markets Oversight Group. Now, as founder of Deerwood Advisors, David is using his experience to help lenders, broker-dealers, and small business owners navigate capital sourcing and compliance while emphasizing the unique strength of the U.S. small business ecosystem. Watch Episode Here: youtu.be/PWs5NXMOGIc?si… Topics Covered: ✓ David’s deferred resignation decision and why it was the most difficult professional choice of his career, especially with the addition of voluntary early retirement ✓ David’s career progression inside SBA from nearly 20 years in the SBIC program to oversight roles in the 7(a) program, culminating in his leadership of the Secondary Markets Oversight Group ✓ What David misses most about SBA life and how he is now gaining perspective on the differences between operating in a large institution versus building something smaller and more agile ✓ What SBLCs are and why they dominate SBA rankings, including how their specialized focus on SBA lending and deep partnerships across brokers and third parties allow them to consistently lead 7(a) production volume ✓ Why the secondary market is essential to the success of 7(a) and how the guaranteed portion of loans is sold, pooled, and converted into bond-like instruments that drive liquidity and account for roughly half of the program’s funding ✓ Why David believes the U.S. small business ecosystem is uniquely resilient, largely because business formation is relatively accessible and exit is comparatively manageable, a structural advantage many other economies still lack #AColemanConversation #SBA #SBALending #SecondaryMarket #SmallBusinessFinance #MainStreetLending #BusinessAcquisition #SmallBusinessOwnership #FranchiseFinance #CommercialLending #LenderCompliance #CapitalAccess

A Coleman Conversation: Bill Briggs In the first 2026 episode of A Coleman Conversation, I spoke with Bill Briggs, Deputy Administrator of the U.S. Small Business Administration, about the SBA’s priorities for supporting small businesses, expanding manufacturing finance, and strengthening partnerships with lenders. Bill discusses the new MARC working capital program, the proposed increase in SBA manufacturing loan limits, SBA’s renewed focus on veterans and disaster response, and what lenders and Main Street can expect from the agency as it modernizes its programs and technology heading into 2026. Watch episode here: youtube.com/watch?v=GWL_bY… Topics Covered: ✓ Bill Briggs’ role as Deputy Administrator and why he returned to SBA after leading key loan programs during the COVID era ✓ How small businesses are foundational to America's economy through driving community growth and creating most new jobs, making SBA’s mission critical to the country’s economic strength ✓ SBA’s renewed focus on veteran entrepreneurs, including efforts to improve certifications and expand access to federal contracting opportunities ✓ The launch of the MARC program as a flexible working capital tool for manufacturers and early loan examples showing how it can help businesses expand ✓ SBA’s hands-on approach to helping lenders adopt new programs and encouragement for lenders to bring concerns early so policy works in practice ✓ What lenders and Main Street can expect from SBA in 2026, including improved lender experience and new technology and AI tools designed to make SBA lending easier and more efficient #AColemanConversation #BillBriggs #SBA #SmallBusiness #Manufacturing #SBALending #VeteranEntrepreneurs #EconomicGrowth #MainStreet #BusinessFinance

SBA Relaxes 100% U.S. Citizenship Ownership Standards to 95% SBA announced a major change that has held up many SBA 7(a) and 504 loans. Beginning January 1, 2026, SBA will allow a borrower to have up to 5% ownership by foreign nationals, U.S. citizens, U.S. nationals, or legal permanent residents whose principal residence is outside the United States, as well as individuals with Conditional LPR status. The change applies to all 7(a) and 504 applications approved on or after January 1, 2026. Until SBA updates Form 1919, lenders must collect the required information and applicant certifications as outlined in the SOP notice. View SBA Procedural Notice here: colemanreport.com/wp-content/upl… #SBALending #SmallBusiness #MainStreet #SBA7a #SBA504 #BusinessLoans #CommercialLending #Banking

Nathan Reis sentenced to 10 years in prison this morning for Blueacorn PPP loan fraud. He is to report January 20, 2026. His wife, Stephanie Hockridge was sentenced to 10 years last month and is due to report to prison on December 30, 2025.

SBA just announced $3.5 million in funding for the first four MARC loans. I’m told the agency is very committed to this program and is promising “white-glove” treatment for lenders to help get these deals funded. The first approvals include a $1.5 million line of credit to a welding and fabrication firm and a $250,000 facility for a porcelain enamel manufacturer — both approved by a community and regional bank. If you’re involved with a MARC loan and would like some coverage, just let me know. sba.gov/article/2025/1… #SBA #Manufacturing #MARC #WorkingCapital #CommunityBanking

A Coleman Conversation: Karen McHugh In this week's special episode of 'A Coleman Conversation', Bob Coleman sits down with Karen McHugh to mark her retirement from the SBA industry and reflect on a remarkable 40-plus-year career. Karen shares how an unexpected entry into SBA lending became a lifelong vocation focused on education, mentorship, and relationship-building, and discusses the legacy she hopes to leave behind—making SBA lending more understandable, approachable, and human. The conversation also explores her transition into a new chapter as a grief, life, and loss coach with The Pelican Bridge, where she continues her calling of helping others through clarity, empathy, and connection. Watch episode here: lnkd.in/gz728ECP Topics Covered: ✓ Karen McHugh’s 40+ year journey in SBA lending and how she found her passion for education ✓ Her work with NAGGL and the importance of training and professional development in SBA ✓ The legacy of making SBA lending more accessible, less intimidating, and more human ✓ Transitioning from SBA leadership to grief, life, and loss coaching with The Pelican Bridge ✓ How personal loss reshaped Karen’s purpose and led to a new professional calling ✓ Parallels between SBA education and life coaching: listening, clarity, and empowerment ✓ Advice for the next generation of SBA professionals on integrity, learning, and service ✓ Why SBA lending is ultimately about people, relationships, and helping dreams move forward #AColemanConversation #SBALending #SBARetirement #SBA #SmallBusinessFinance #LeadershipLegacy #IndustryMentor #ThePelicanBridge

In this week’s episode of A Coleman Conversation, Bob Coleman sits down with Burke Purcell, CEO of LoanBud and SBA Marketplace, to discuss how fintech and thoughtful structuring are reshaping SBA business acquisition lending. Burke explains how LoanBud connects entrepreneurs to SBA capital faster and with less friction by partnering with nearly 50 SBA PLP lenders and focusing on both small-dollar working capital and change-of-ownership transactions. He shares how pre-qualifying listings with brokers, analyzing cash flow and customer concentration, and planning for permanent working capital can make or break a deal. Watch episode here: youtu.be/rDIis0T4JAU Topics Covered: ✓ What Loan Bud does and how its fintech platform connects entrepreneurs to SBA loans with less friction ✓ Why SBA acquisition financing is critical for cash-flowing small businesses that often aren’t bankable on a conventional basis ✓ Loan Bud’s process for pre-qualifying listings with brokers and marketplaces, from cash-flow analysis and SBA eligibility checks to obtaining pre-qualification letters ✓ How shifting lender credit boxes and appetites create both challenges and opportunities—and why a multi-lender SBA marketplace adds value ✓ Trends in buyer demand amid the “silver tsunami,” including young, highly educated entrepreneurs buying and rolling up service businesses ✓ Burke’s move from a top-10 SBA bank to an independent marketplace and what surprised him most about entrepreneurship and speed of execution #SBA #SmallBusinessLending #LoanBud #BusinessAcquisition #Fintech #Entrepreneurship #SBALoans #SilverTsunami #LendingInnovation #AColemanConversation

Congressman Roger Williams Headlines the SBA Secondary Market Summit – SBA Loans Increase to $10 Million for Manufacturers Congressman Roger Williams, chair of the House Small Business Committee, delivered the keynote at last week’s 18th Annual SBA Secondary Market Summit in Washington, D.C. He entertained the room with his folksy Texas drawl and reminded everyone that he’s proud to be in a position to help deliver capital to America’s Main Street small businesses. In my introduction, I noted that Congressman Williams understands small business from every angle. Before politics, he played professional baseball for the Atlanta Braves and later served as head baseball coach at TCU. He knows what it takes to bring out the best in people—how to help individuals reach their full potential while keeping everyone focused on a team goal. As a third-generation small business owner with car dealerships across the Dallas–Fort Worth market, he understands what every Main Street entrepreneur faces: you must offer a product or service that meets customer needs, and you have to deliver every time. And as chairman of the House Small Business Committee, he is in a unique position to shape programs that expand small business access to capital. Congressman Williams highlighted the House passage of last week’s Made in America Manufacturing Finance Act, which raises SBA 7(a) and 504 loan limits for manufacturers to $10 million. Roger said, “The Made in America Manufacturing Finance Act provides small business owners the capital they need to expand, modernize, and compete. We must continue to support and empower the job creators who keep our communities thriving. Together, we will continue driving the America First Agenda forward and creating an environment where the success of Main Street is a priority.” The bill passed on a unanimous, bipartisan voice vote, a rarity in today’s Congress. The legislation now moves to the Senate, where Senators Joni Ernst (R-Iowa) and Chris Coons (D-Delaware) are leading the companion bill. More to come as this progresses. #CongressmanRogerWilliams #SBA #SmallBusinessLending #SecondaryMarket #ManufacturingFinance #MadeInAmerica #MainStreetUSA

A Coleman Conversation: Brock Blake In this week's episode, Bob Coleman sits down with Brock Blake, CEO and co-founder of Lendio, to explore his journey from scrappy BYU soccer standout to building one of the nation’s leading small business financing platforms. Brock shares how his first venture—helping entrepreneurs raise equity capital—ultimately evolved into Lendio, a marketplace designed to give Main Street businesses easier access to loans. He reflects on how Lendio scaled during the Paycheck Protection Program, facilitating hundreds of thousands of PPP loans totaling nearly $10 billion, and how that experience accelerated the company’s move into SBA lending. Brock explains how Lendio’s technology and data-driven underwriting match borrowers with more than 100 lenders nationwide, with a strong focus on underserved small-dollar loans under $250,000. He also offers his outlook for SBA lending in 2026, why smarter cash-flow underwriting is essential for sub-$150,000 loans, and how owning multiple Crumbl franchises keeps him grounded in the day-to-day realities of Main Street business operations. Watch episode here: youtube.com/watch?v=Z3ycYu… Topics covered: ✓ The evolution of Lendio from an equity matchmaking concept into a leading small business loan marketplace, including lessons learned from processing nearly $10 billion in PPP loans ✓ How Lendio’s dynamic online application matches borrowers to SBA, conventional, equipment, and other loan products across more than 100 lending partners ✓ Lendio’s collaboration with SBA lenders to define credit policies, assemble complete loan packages, and deliver qualified deals “on a silver platter” ✓ Why loans under $250,000 remain underserved and how banks can profitably meet this demand without relying solely on the SBA guarantee ✓ How operating four Crumbl franchise locations gives Brock firsthand insight into the cash-flow, staffing, and financing challenges Main Street business owners face #AColemanConversation #Lendio #SBALending #SmallBusinessFinance #MainStreetAmerica #BusinessLoans #Fintech #PPP #CashFlowLending #FranchiseOwner #Entrepreneurship #AccessToCapital #SmallBusinessGrowth

A Coleman Conversation: Rocco Perate In this episode of A Coleman Conversation, Bob Coleman sits down with Rocco Perate, Executive Vice President at Meridian Bank, to revisit the rise of The Money Store, explore how it reshaped SBA lending, and discuss what it takes to build a high-performing SBA platform inside a community bank. Rocco reflects on his journey from traditional credit training to becoming a top-producing SBA lender, explains why local market knowledge still matters in a national model, and shares how Meridian balances growth, credit quality, and relationship banking. He also dives into the realities of revenue advance financing, the importance of liquidity for today’s entrepreneurs, and how Brazilian Jiu Jitsu has shaped his leadership and outlook on life and business. Watch episode here: youtu.be/RhBH35uJtcU?si… Topics Covered: ✓ How The Money Store helped bring SBA lending into the mainstream and pioneered a national, commercial real estate–focused model ✓ Rocco’s career journey from traditional bank training to underwriter, top-producing BDO, and EVP leading Meridian Bank’s SBA platform ✓ Building and managing a tight-knit SBA team at Meridian, with daily communication, transparency, and empowerment as core leadership principles ✓ Why liquidity and working capital matter more than ever for small-business borrowers—and how SBA structures can support stronger cash flow ✓ The misunderstood role of revenue advance/MCA financing and how SBA lenders can work with MCA providers when borrowers are stressed ✓ Lessons from Rocco's personal passion, Brazilian Jiu Jitsu, on strategy, patience, and emotional control—and how those principles translate into better decision-making in lending and leadership #AColemanConversation #ColemanReport #SBALending #SmallBusinessLending #CommunityBanking #MeridianBank #TheMoneyStore #CommercialRealEstate #LeadershipInBanking #HighPerformingTeams #BusinessStrategy

SBA Veterans Advantage: Fee Waivers and Priority Processing for Veteran-Owned Businesses With Veterans Day tomorrow, it's a great time to highlight the veteran-specific eligibility, fee relief, and processing priority available under the SBA loan programs. Under the Veterans Advantage portion of the SBA 7(a) loan program: • No upfront guaranty fee on SBA Express loans up to $500,000 for businesses owned and controlled by eligible veterans. • Priority processing on SBA-handled (non-delegated) loans -- veteran files move to the top of the stack. • Lender-level incentives that can further reduce rates and fees. ✅Eligible applicants include: • Veterans (other than dishonorably discharged) • Service-disabled veterans • Active duty service members in the Transition Assistance Program (TAP) • Reservists and National Guard members • Current spouses of any of the above • Widowed spouses of service members or veterans who died in service or from a service-connected disability 📊 Veteran Lending Snapshot – FY 2025 • Just over 3,300 loans to veterans, totaling more than $1.34 billion in SBA financing • Other Veterans: 2,257 approvals — $919,369,500 (2.9% of total) • Service-Disabled Veterans: 1,047 approvals — $418,402,300 (1.3% of total) • Vietnam Era Veterans: 5 approvals — $2,951,000 (0.0% of total) SBA has formally recognized the importance of giving special consideration to veterans in its loan programs. Pages 111 and 327 of SOP 50 10 8 for the 7(a) and 504 programs state: “SBA recognizes the importance of giving special consideration to veterans in its loan programs. SBA will prioritize processing applications from businesses that are owned by veterans when those loans are processed by SBA under non-delegated procedures. For loans processed under delegated procedures, SBA encourages Lenders to give special consideration to veterans during application processing.” With government backlog impacting Citrus Heights and other offices when operations resume, this directive moves veteran applications to the top of the pile. In addition to funding support, veterans can access specialized training and counseling through the Office of Veterans Business Development (OVBD) and the Veterans Business Outreach Centers (VBOCs). These programs provide guidance on business planning, financing strategies, and SBA certification. Read more here: colemanreport.com/main-street-mo… #MainStreetMonday #ColemanReport #VeteransDay #SBALoans #SBAExpress #SBA7a #Veterans #VeteranOwned #VetBiz

The $45 Million Fraud that Ripped off 20 Nebraska Banks A Nebraska financial adviser has been sentenced in one of the state’s largest bank frauds. Jesse Hill, 35, of Hickman, received 5 years in federal prison for helping orchestrate a $45 million fraud that deceived nearly 20 banks across Nebraska and western Iowa. The scheme — built on fake investment statements and false collateral — collapsed after the death of Lincoln businessman Aaron Marshbanks in 2022, exposing losses that wiped out profits and jobs at community banks. Judge Susan Bazis called Hill’s actions “deliberate and calculated,” underscoring that white-collar crime can devastate communities. Watch Fraud Friday on YouTube here: youtu.be/CZMFtua361M?si… #FraudFriday #BankFraud #WhiteCollarCrime #FinancialCrimes #Justice #Compliance #RiskManagement #Ethics #NebraskaNews #FinanceIntegrity

A Coleman Conversation: Frank Gallegos In this week’s episode of A Coleman Conversation, Bob Coleman sits down with Frank Gallegos, Executive Director of Cen Cal Business Finance Group in Fresno, to discuss his journey from SBA lender to leading one of California’s most impactful Certified Development Companies. Frank shares how Cen Cal drives small-business growth across the Central Valley through the 504 loan program, supports rural and agricultural communities, and continues to expand its reach through recent acquisitions in Santa Maria and Bakersfield. He also offers insights on the region’s evolving economy, from automation and AI to the challenges of tariffs, water access, and workforce costs. Watch episode here: youtube.com/watch?v=UQ1A_E… Topics Covered: ✓ Frank’s career path from early SBA lending and banking to leading Cen Cal Business Finance Group, one of California’s most active CDCs ✓ Strategic CDC acquisitions in Santa Maria and Bakersfield that expanded Cen Cal’s footprint and preserved 504 access in underserved rural markets ✓ How the Central Valley’s agricultural economy—from nut and citrus processing to cold storage—drives community jobs and national food supply chains ✓ The top challenges facing small businesses today, including rising tariffs on imports, water limitations, and higher labor costs ✓ The growing role of automation and AI in improving productivity within agriculture and lending while maintaining customer data protection ✓ New microloan programs and city partnerships designed to expand capital access for small and emerging businesses across the Valley #ColemanConversation #FrankGallegos #CenCalBusinessFinanceGroup #SBALending #504Loans #SmallBusinessFinance #CentralValley #Agriculture #RuralDevelopment #EconomicGrowth

BayFirst Posts $12.4 Million SBA Small Loan Loss — OCC Action Looms BayFirst Financial Corp reported a $12.4 million loss from winding down its SBA 7(a) small-loan program, part of an $18.9 million Q3 net loss, according to its November 1 earnings call. The bank sold its SBA portfolio to Banesco USA at 97 cents on the dollar and said it expects further regulatory action from the OCC this quarter. BayFirst’s popular BOLT program once made it the nation’s 20th largest SBA 7(a) lender, with nearly 2,000 loans totaling $332 million. In August, the bank closed its SBA division and cut 51 positions, projecting $6 million in annual savings. CEO Thomas Zernick said the exit followed a strategic review “to de-risk the balance sheet” and refocus on BayFirst’s community banking mission in Tampa Bay. CFO Scott McKim added the bank still holds $167 million in unguaranteed SBA 7(a) loans and continues marketing the remainder. Read more details here: colemanreport.com/bayfirst-posts… #SBA #SmallBusinessLending #CommunityBanking #ColemanReport #BayFirst #SBALoans #FinancialNews #BankingIndustry #OCC