SEPTEMBER 2012

SBA Distribution Model

1

Organizational Structure

Head of SBA

Region 1 Sales Mgr

Region 2 Sales Mgr

Region 3 Sales Mgr

Sales Operation

s

SBA Loan Productio

n Mgr

SBA Express

Mgr

Region 1 BDOs

Region 2 BDOs

Region 3 BDOs

Sales Operations Analyst

Closing & Packaging Managers

Underwriting

Managers

SBA Express Analysts

Underwriters & Credit

Analysts

Closers & Packagers

SBA Senior Credit Officer

SBA Senior

Workout Mgr 2

Centralization is Key!

Centralized Credit Adjudication Credit Center to Underwrite and Process loans Lending decisions made on behalf of the U.S. SBA

Preferred Lender Program (PLP) Portfolio Management Team ensures guarantee is

maintained

All Market Underwritten deals are reviewed for eligibility even if the SBA Credit Center didn’t Underwrite

Weekly pipeline meeting with Sales and Credit Center

Executive oversight of larger deals 3

Compensation Plan

Sales Variable Compensation Awards Volume Targets top producers Tiered compensation with thresholds at $5MM

Commission Payout Product Variations 7(a) – Greater profitability = higher individual

compensation 504 – Lower profitability = lower individual

compensation

4

Compensation Plan Guidelines

Volume goals established at beginning of Plan Year

Maximum Plan Payouts

90 Day Ramp-up period of ineligibility

Claw-Backs if non-performing within first 12 months

5

Sample Compensation

Individual YTD Volume $0-$5M $5-10M

$10-15M

Payout =% of Loan Amount

0.75% 1.25% 1.75%

6

7(a)

Loan Pricing Variable Fixed

Payout =% of Loan Amount 0.25% .50%

504

Compensation Adjustments

Referral Fees: Paid to Brokers Maximums apply Alters Payout to

Sales Person

Broker Fee (% of Loan Amount)

Individual Payout Adjustment (% of

Loan Amount)

No Fee +0.05%

<= 0.50% No Change

> 0.50% - 0.05%

7