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BEST PRACTICES IN LOAN COMMITTEE MANAGEMENT & LOAN DOCUMENTATION
Session I – 9:00 am – 10:30 am
The Loan Committee: Friend or Foe?
The day of the loan committee meeting has arrived! Have you prepared adequately? Are you anticipating positive results and confirmation of your recommendation or are you apprehensive about "what might happen this time"? Loan committee meetings shouldn’t be seen as a "We vs. Them” scenario. To the contrary, the goal of the committee is to fund strong economic development projects to enhance your community and business climate. As such, a loan committee meeting should be conducted as a gathering of team members who share that common goal and are prepared to make sometimes difficult decisions to ensure it is accomplished. Items to be addressed during this session include:
- Who and how many members should be on your loan committee?
- How should you interact with members?
- How do I educate the committee about what happens in advance of the meeting?
- Who actually does the credit review (you or them)?
- To what extent do the committee members wear economic develop hats?
Session II – 10:45 am – 12:15 pm
What Loan Documents Do I Really Need?
Loan documents relating to real estate are very different from those relating to machinery and equipment. However, while loan documents come in a large variety of styles, the basic documents lending professionals deal with are very similar. Which documents are appropriate for my project? Do I have to pay my attorney to become involved or is there an opportunity to save money on documentation? How do I ensure that my loan documentation is complete? In addition to answering these questions, this session will address:
- Document terminology.
- Who writes the loan documents?
- Who attends the loan closing?
- Where do we close the loan (here, there or anywhere?)?
- Who gives the borrower their loan funds and when do we get paid?
- How much time should it take to close a loan?
No matter your level of experience in lending, this session is designed to provide you with tools that will allow you to increase your knowledge, evaluate your own practices with those of your peers and improve your overall effectiveness as an economic developer.
Jim McClure, who holds an Associate degree in Business Administration from Susquehanna University, comes to us with more than 25 years of lending experience, the past 14 years as the manager of an economic development portfolio which has grown from $12 million to over $100 million. Having entered the world of finance in the agriculture and machine tool industries before settling into the economic development arena as a loan officer and manager, Jim spent time operating a small business and working as a sales representative of a major manufacturing company.
This event qualifies for 3.0 organizational PDUs (Finance) through the Pennsylvania Economic Development Institute (Institute).*
*A complete explanation is provided in the Guidelines for Certification of Economic Development Organizations (Guidelines) issued by the Pennsylvania Department of Community and Economic Development (DCED) and in the Institute’s Policies and Procedures.
Note: We reserve the right to reschedule or cancel this offering. In the event of a cancellation, a full refund will be provided to registrants.