Program Overview

The Fundamentals of Commercial Lending Virtual Workshop provides bankers with foundational principles for effective commercial loan underwriting and credit analysis.  This three-day interactive workshop will equip bankers to analyze the “whole credit” and make evidence-based loan approval and structuring recommendations.  These skills are vital in today’s community banking environment, where bankers must have the knowledge and flexibility to respond to a wide range of loan requests.  

The instructor’s facilitation approach encourages engagement, which enhances the participant learning experience. Attendees will apply lending, underwriting, and credit analysis principles through class discussion, real-world examples, and case studies. 

What You Will Learn

• Gain a solid foundation for a career in small business lending, commercial lending, retail lending, credit analysis/underwriting, or loan review.
• Become aware of common mistakes and pitfalls in commercial lending and credit analysis.
• Analyze financial information presented in financial statements and business and personal tax returns.
• Effectively interpret information provided in the various financial software spreading reports.
• Understand why knowledge of UCA cash flow analysis is a critical skill for all small business and commercial bankers.
• Fully analyze relevant details of a credit, understand and mitigate key risks, and make sound loan recommendations and decisions.
• Build your commercial lending competence and confidence and increase your credibility with customers, credit partners, senior managers, and regulators.

Topics Covered Include

• Commercial Lending Defined and Types of Commercial Loans;
• Defining the Loan Purpose and Borrowing Need;
• Types of Borrowers (Legal Entities) and Other Parties to the Loan;
• Credit Analysis 101: the 5 C’s of Lending;
• Calculating Loan to Value, Loan to Cost, and Lendable Equity;
• Supervisory LTV Limits: Identifying and Tracking Part 365 Exceptions;
• Calculating Traditional Cash Flow: Debt to Income, and Debt Service Coverage;
• Identifying and Protecting Sources of Loan Repayment;
• Fair Lending and Consistency in Underwriting;
• Proper Loan Structuring: Aligning Borrowing Need, Repayment Source and Timing, and Collateral with Loan Type and Terms;
• Business Financial Accounting 101;
• Analyzing Business Financial Statements;
• Evaluating Guarantor Support and Analyzing Personal Financial Statements;
• Calculating Global Debt Service Coverage and Global Debt to Income;
• Analyzing Personal Tax Returns and Key Schedules;
• Analyzing Business Tax Returns and Key Schedules;
• When and Why to Request K-1’s and/or Business Tax Returns;
• Cash Conversion Cycle and Working Capital Analysis;
• Beyond Traditional Debt Service Coverage: UCA Cash Flow Analysis ;
• Your Critical Role as a Relationship Builder and Trusted Advisor.

Dates & Times

March 10-12

8:50AM Zoom Log In | 9:00AM Workshop Start | 4:00PM Workshop Ends

Who Should Attend?

This series is designed for bankers new to commercial lending and credit analysis, although more experienced lenders may also benefit from some of the topics. This course is “down-to-earth” and particularly relevant for bankers who specialize in lending to small businesses and mid-size commercial borrowers.  

Express Grant

The course ID for the Fundamentals of Commercial Lending Virtual Workshop is C-3851. Banks with 50 or fewer employees can be reimbursed 100 percent for the program's cost. For more information on the Commonwealth Corporation's Workforce Training Fund Program, please visit their website. If you need assistance with the Express Grant, please contact the Commonwealth Corporation directly. 

Questions? Check out our FAQs or contact registrations@massbankers.org