SBA Loan Workout Officer I

First Commonwealth Bank•Pittsburgh, PA

About The Position

Primarily responsible for managing adversely classified and non-performing government-guaranteed loans, including SBA (7(a), working capital program, and 504) and USDA financing. Will supplement conventional Loan Workout Officers based on volume and capacity. This role focuses on risk mitigation, borrower restructuring, liquidation strategy, collateral recovery, and preservation of the SBA guaranty. The officer ensures full compliance with SBA Standard Operating Procedures and bank credit policy while minimizing loss severity and protecting capital. Interacts with management of the business line and Credit Administration and assigned borrowers to develop a plan of action to either, 1) protect and improve the Bank’s position in the credit through improved loan structure while the company executes on its plan for a turnaround, and /or 2) effects strategies to compel the borrower to exit the bank. Effectively controls the bank’s collateral position to minimize the Bank’s potential loss on the assigned credit. Secondarily responsible for management of conventional non-performing loans as assigned.

Requirements

Associates degree in related field or equivalent experience required.
A minimum of three (3) years SBA related work experience is required. Knowledge of underwriting and commercial credit, credit analysis, loan documentation, loan workout and restructuring preferred.
Excellent computer, analytical, and mathematical skills are required. Proficiency in MS Office software required.
Excellent communication and interpersonal relations skills required.
Valid driver’s license and ability to travel to assigned/necessary locations required.

Responsibilities

Responsible for restructuring and working out adversely classified and non-performing SBA and USDA loans while working closely with other Loan Workout Officers and Management as needed.
Demonstrates comprehensive knowledge of SBA SOP 50 57 (Servicing and Liquidation) and SOP 50 55 (Lender and Development Company Loan Programs).
Ensures SBA compliance and preservation of the SBA guaranty through timely completion of site visits, business valuations, liquidation plans, and guaranty purchase packages.
Assists in preparation and submission of SBA guaranty purchase requests and responds promptly and thoroughly to requests, repair notices, or denial inquiries.
Coordinates SBA or Office of Inspector General reviews as needed to protect the bank’s guaranty position.
Applies working knowledge of Chapter 7, 11, and 13 bankruptcy processes, including understanding automatic stay implications and evaluating collateral and lien priority.
Develops strategies related to deficiency judgments and demonstrate familiarity with foreclosure processes and UCC sale procedures.
Effectively directs, oversees, and collaborates with outside counsel to protect the bank’s interests while ensuring preservation of the SBA guaranty (without providing legal advice).
Interacts with the management of Credit Administration and the business line to develop work-out strategies and action plans to better protect the bank’s position through re-structuring the borrower’s credit, such as taking additional collateral, increasing amortization, increasing recourse of guarantors, etc.
Reviews existing loan documentation for completeness and accuracy and formulates strategy to bring account to current status.
Evaluates clients’ financial strength and capacity to repay outstanding debt.
Works closely with the borrower to understand the company’s financial issues and turnaround plans and negotiates with borrowers to restructure credits to terms consistent with work-out strategies.
Monitors borrower’s progress and milestones in effecting the turnaround plan and effects strategies to have the borrower exit the bank if turnaround plan is viewed as not feasible or if the borrower is not cooperative with the bank’s strategy.
Corresponds regularly and effectively with attorneys and clients regarding non-current status accounts and prepares call memos recording all interactions with borrowers. Negotiates settlements, as required.
Works with attorneys to prepare documentation for and close restructured loans, forces accounts into closure (to current status or by means of liquidating collateral), processes payments, reviews attorney bills, and prepares related reports.
Represents the bank as the primary point of contact with the borrower on all bank deposit and loan services.
Prepares Credit Reports for and makes presentations to Loan Committees; Prepares Criticized Asset Reports and makes presentations to Criticized Asset Committee; Prepares Impaired Worksheets and participates in the Allowance for Credit Losses process.
Assesses liquidation value of collateral, takes whatever steps are necessary to monitor and maintain collateral value, develops liquidation plans if necessary, and supervises liquidation if necessary.