HOW TO HARNESS
Utilizing Intel Dashboards for Loan Presentations & Executive Summaries
Why include SBADNA Intel Dashboards into your loan summaries/presentations?
To answer in one word:
“Context”
Intel Dashboard technology makes it possible to include relevant and helpful intel with loan presentations. Augment your loan summary/presentation with intel that previously would have been too time consuming and difficult to find to even consider including. Now, you can find this type of intel in seconds and in a quick moment have a quality resolution image downloaded.
SBADNA intel provides additional context to approvers and committee members when evaluating a loan for approval. Context about historical and trending loan activity, the lenders, franchises, states and cities generating the most loan activity, how the business industry looks within its Industry group, Subsector and Sector, and how the loan amount compares to the historical loan amount tier allocations.
SBADNA intel provides additional context to approvers and committee members when evaluating a loan for approval. Context about historical and trending loan activity, the lenders, franchises, states and cities generating the most loan activity, how the business industry looks within its Industry group, Subsector and Sector, and how the loan amount compares to the historical loan amount tier allocations.
CHARGE-OFF INTEL
Right now, the primary (or only) charge-off data included in the typical loan presentation is just the national charge-off percentage of number of loans charged off and percentage of dollars charged off for the NAICS six-digit industry code over the most recent ten-year period.
SBADNA has so much valuable charge-off intel it would be easy and worthwhile to include a charge-off exhibit with every loan presentation.
Include the Real Charge-off Ratios
SBADNA technology has made charge-off intel more transparent. Why only use overly broad national industry charge-off ratios when you can now see how the ratios change when you filter for state, county, and loan amount tier.
Most approvers would want to know if the 1.15% national industry charge-off ratio is really 7.82% for the industry in the project state and for the loan amount tier of the loan being reviewed. Especially if it is a “borderline” approval loan.
Larger size loans often get extra risk and charge-off scrutiny from an approver. However, almost all charge-offs come from loans under $350,000. All-time, 88% of charge-offs were for loans under $350,000 and 73% of all charge-offs were for loans under $150,000.
EXAMPLE:
Example of a new loan commercial bakery loan for $250,000 in Indiana. Go to Risk category and then Charge Off DNA dashboard.
For the 10-year period ending 2021, Commercial Bakeries (NAICS code 311812) national charge-off ratio of dollars charged off is 1.15%. However, for loans under $350,000 the same ratio more than doubles to 3.06%. Commercial Bakeries for loans under $350,000 in project state Indiana? It more than doubles again to 7.82%.
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Include the Charge-off Dashview Perspective
Most all dashboards have the Loan Status drop down filter. This means you can select the Loan Status filter, select Charge-offs, and the entire dashboard is now a charge-off report.
When reviewing a franchise loan’s charge-off risk consider including the Franchise Dashview dashboards for different and insightful context.
EXAMPLE:
For the Primrose Schools franchise loan you are considering…
Go to Franchise Dashview, select Loan Status filter then select Charge-off. Then go to U.S. Industry and select Child Day Care Services. The dashboard now shows which franchise brands had the most charge-offs, where they happened, the lenders hardest hit, the yearly timeline of charge-offs, and the percentage of charge-offs by each loan amount tier.
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Include Charge-off Charts
Charge-off charts give context to risk from a wider angle.
EXAMPLE:
If you have a limited service restaurant loan for $750,000 you can see at a glance how limited-service restaurants charge-off ratios stack up against peer industries.
This dashboard filters for Subsector: Food Services & Drinking Places and loan amount tier $350,000 to $1,000,000.
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Include Charge-off Overall Totals
While ten-year periods are used for charge-off ratios looking at total numbers are also helpful.
Use the Risk Counter dashboard for getting total charge-off numbers.
This Risk Counter dashboard example shows total charge-off totals for Snack and Nonalcoholic Beverage Bars for loan amounts under $350,000 in Los Angeles county, California. All time there have been 90 charge-offs and over the last 5 years there has been one charge-off.
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Include the Borrower Board Charge-off List
You’ve never been able to do this before, but you can now show the list of borrowers whose loan was charged off.
This example shows all of the Insurance Agencies and Brokerages borrowers who had a loan charge-off over the last 5 years. If the list is too long, then download as an Excel spreadsheet.
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Insert individual charge-off charts and graphs
Any of the charts, graphs, maps, and lists within the dashboard can be downloaded as separate images or Excel/CSV formats.
Use the Loan Status filter on any dashboard (try the Activity – Snapshot dashboard) and select Charge-off and select apply. Now the entire dashboard is a charge-off report.
Filter for U.S. Industry: Child Day Care Services, change the time period if you want to from “All “ to the last 10 years (rolling 40 quarters), and download any chart you want to insert.
EXAMPLE:
Over the rolling ten-year period (40 quarters ending Q2 2022) there has been 48 charge-offs for the Child Day Care Services (code 624410) industry.
The number of Child Day Care Services charge-offs:
For the 48 Child Day Care Services charge-offs, 36 charge-offs or 75% were for loan amounts under $150,000 and 4 charge-offs or 8.33% was for the loan amount tier $350,000 to $1,000,000.
The Project States were Child Day Care Services loan charge-offs were reported over the last 10 years:
LOAN CONTEXT INTEL
Let’s say you have a Child Day Care Services loan for $750,000 in Texas. It’s a Primrose School franchise.
Industry Dashview
Go to Industry Dashview dashboard and filter Franchise Name to “Primrose Schools” and select “Apply”. This example selected the last 5 years.
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Franchise Dashview
Pull the Franchise Dashview in two different ways.
Filter U.S. Industry for “Child Day Care Services”.
Filter Franchise Name for “Primrose Schools”.
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FRANCHISE VS. FRANCHISE
Primrose Schools vs The Goddard School. When there are two prominent franchise brands then an approver may want to see both brands’ SBA lending activity side-by-side.
Just go to Franchise category and then Franchise Compare.
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GEO Dashview
The Geo Dashview dashboard shows a comprehensive SBA lending geographical footprint summary of Primrose Schools.
Filter for “Primrose Schools” or for “Child Day Care Services” or any other combination you can think of - including State, County, and City.
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