November 27, 2018

SBA Portfolio Performance – How Does My Bank Measure Up?

The SBA’s Office of Credit Risk Management (“OCRM:) utilizes the Lender Portal to monitor lender behavior and identify emerging trends that may negatively impact the Agency.  The Lender Portal shows lender data for the past eight quarters for every SBA lender. This information can be downloaded and reviewed to assist you in monitoring SBA portfolio performance and compare your institution to your peers.

The Lender Portal is a quantitative performance dashboard provided by the SBA in partnership with Dun & Bradstreet for both SBA 7(a) and SBA 504 loan programs.  OCRM’s objective in developing the Lender Portal is to increase transparency into OCRM’s procedures and performance metrics that are used to monitor lender portfolio performance and is the basis for much of the PARRiS risk-based reviews.

The Lender Portal provides:

  1. Historical Context of Lender Performance
  2. Peer Group performance
  3. Portfolio Benchmarks and the PARRiS scorecard
  4. Forecasted purchase rates
  5. Current & Historical small business credit scores (SBPS) for each loan in your portfolio
  6. Portfolio performance trends over time and concentrations in different segments

There are some new features:

  1. Graphical representations of PARRiS metrics and benchmarks
  2. PARRiS Flags
  3. The number and dollar amounts that contribute to your score
  4. Vintage year segmentation
  5. Delivery method segmentation
  6. Form 172 payment information
  7. Concentration tables for Industries, Franchises and Geography

One of my favorite parts of the Lender Portal is the Small Business Risk Portfolio Solution (SBRPS) Score.  For 7(a) lenders, the SBRPS (also known as SBPS) shows a score for each loan in the portfolio and you can compare your decisioning and portfolio management to peers.

Another good feature of the Lender Portal is the PARRiS scorecard which includes the 15 benchmarked rates and the 8 non-scored flags for your institution and compared to peers.

If you haven’t downloaded this information, attached is a power point that was provided by the SBA and I would encourage you to reach out to your district office for assistance.

Download (PDF, Unknown)

-J.M. Chuck Evans
President

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