Lending to small and micro businesses is a challenging undertaking for a nonprofit organization and requires the development of dozens of systems and capacities, one of which is quality underwriting. Few trainings exist for staff on the fundamental skills for consistent, quality microloan underwriting, so we developed one.

Also, when coaching and training staff understand underwriting basics, they can help their clients be more successful at applying for loans.

CAMEO offers Microlending Essentials, a microlending underwriting class for the CDFI and business-coaching nonprofit community several times a year.

Developed by Susan Brown, CAMEO’s VP of Capacity Building, this introductory training covers multiple analyses: global cash, credit history, debt-to-income and bank statement. Participants also underwrite and write credit memos for three actual microloan applications.

Susan, who has worked in the microenterprise industry since its early years, developed this introductory training with input from some of the strongest lenders in the field today.

What makes this training unique and valuable?

What makes this training unique and valuable?

The participants apply the analyses they learn to three actual microloan applications.

We provide a practice underwriting criteria grid that introduces participants to the fundamental structure that every lender should use to guide decision making.

We provide a credit memo form that 1) walks participants through each step of the underwriting process; 2) compares each deal’s particulars to sample underwriting criteria; and 3) provides a format for presentation to a loan committee.

We introduce the elements of a loan program needed to run a quality loan program - the infrastructure, capacities and policy pieces.

We explore various for roles a loan committee in the microlending approval process.

We delve into the differences in ‘point of view’ between business coach and loan underwriter roles.

We consider how an organization’s target market impact loan product design, underwriting criteria and loan processing.

We discuss mission, scale, impact and technology – prompting participants to consider their future direction and choices.

Topics

Microlending Overview
Underwriting Criteria
Credit Memo Introduction
Application and Eligibility
Required Documents
Amortization
Credit Report
Credit History and Current Debt
Global Cash Analysis
Bank Statements
Profit and Loss Statement
Debt to Income Ratio
Projections
Collateral, Character, Character
Write three Credit Memos and
Make Loan Recommendations
Present Credit Memos
Group Discussion

Participants apply these topics to three actual microloan applications, using supporting documents and writing up credit memos for each.

Class Dates

We are offering this five-part class online: 9:30am – 12:30pm, Monday, March 22 through Friday, March 26, 2021.

Pricing

Cost: $500 for CAMEO members and $650 for nonmembers.

Registration for CAMEO members is $500 each student. If you are a CAMEO member, please email mcruz@cameonetwork.org for a discount code.

To learn more about CAMEO's membership benefits, visit: https://cameonetwork.org/cameo-membership/join-cameo/

Please note that no refunds are accepted once the class begins on March 22.

Testimonials

As a business coach, this training helped me understand how the loan process works. I have more knowledge to prepare clients before they apply for a loan. – Edwin Rodriguez, MEDA

I believe that you taught us a golden rule that is often missed: As a lender (and more generally as a businessperson), we are actively trying to reach a ‘yes’ without compromising our standards. -- Mohammed Al Ani, International Rescue Committee

I started this session with minimal understanding of the underwriting process and am walking away feeling well-equipped to help my organization with our loan program. This course shed light on the importance of a structured process and has encouraged us to review how to scale our growth and impact. – Alejandra Garcia, Leadership for Urban Renewal Network

Susan was fantastic. All the materials were digestible. She helped us understand the very differing roles of TA provider and lender. –Azusena Favela, Inclusive Action for the City

Susan was very clear that there is no one way of doing things. Now I know that organizational goals & approach need constant review. Super valuable!

Great training for small CDFIs that don't have in-house training. I'd give it 5 stars.

Susan is an amazing instructor. She demonstrated a deep understanding of microlending, and was able to communicate her knowledge clearly.

For any questions, please email Susan Brown sbrown@CAMEONetwork.org

Microlending Essentials Online (March 2021)