The 2025 National Association of Government Guaranteed Lenders Fall Conference brought together SBA lenders, policy experts, and industry leaders to discuss the evolving landscape of 7(a) lending. With a record-setting year behind us and significant regulatory and technological changes in the works, the sessions were packed with insights. Here are some of the most important takeaways:
A record year, but at a cost
FY25 saw a historic $37.3 billion in gross 7(a) loan volume. However, the “Do What You Do” policies of the previous standard operating procedures left the program operating at a $2.2 billion deficit, with early defaults up significantly for loans originated between June 2023 and May 2025. With the SOP that went into effect June 1, 2025, SBA aims to improve loan quality by reimplementing tried-and-true, prudent underwriting practices, even if it means decreased loan volume in FY26.
Technology transformation
A new SBA application portal is in development and will be rolled out in phases starting in 2026. It promises real-time compliance checks, digital SBA Form 1919, streamlined document uploads and improved efficiency. With this modernization, SBA is striving to increase security, consolidate systems, eliminate email-based processes, reduce screen-outs, and improve turnaround times.
Success is not linear
Our keynote speaker was Jim Davidson, a renowned speaker, author and climber of Mount Everest. As someone with no mountain climbing experience or knowledge, I always thought you started at the bottom and climbed to the top. It turns out a successful climb of Everest includes a series of treks up and down portions of the mountain over several weeks before your body is acclimated to take on the final push to the summit. How many times have each of us achieved success not in a straight line but through a series of ups and downs?
Looking Ahead
The conference closed with a focus on collaboration and adaptability. Whether it’s navigating new technology, adjusting to policy shifts, or managing risk, lenders were encouraged to stay informed and proactive. Let’s all make it to the top together!
Becky Schneider is a lender services manager with WBD. Contact her by email at bschneider@wbd.org.
