Whether they’re banks, credit unions, or non-bank entities, lenders who work with the United States Small Business Administration (SBA) have a responsibility to carefully document every step of the SBA 7a or SBA 504 loan process and ensure that proper SBA funding and closing procedures are followed. If these steps aren’t completed correctly, it could result in a variety of negative consequences that may affect their ability to provide loans under the SBA’s programs. From the SBA 7a loan application to SBA loan servicing to SBA liquidation, all procedures must be followed, and it takes an SBA loan approval legal advisor to counsel you on the best way to comply with those procedures.
At Starfield & Smith, we know that the SBA loan documentation and closing process can be complicated; if you hope to provide services like SBA loan preparation, SBA loan servicing, SBA loan modification, or SBA loan liquidation, you must procure the counsel of an SBA lender legal advisor to teach you about the proper way to deal with these matters. If you’re looking for the best commercial lending lawyers for SBA loans, our firm has the knowledge and experience it takes to advise you on anything related to the SBA 7a or SBA 504 loan process.
Our attorneys for SBA lenders have helped lenders nationwide to properly document and close SBA 7a, SBA 504, USDA, and commercial loans for over 25 years. Every attorney at our firm understands the importance of complying with SBA funding and closing procedures and of documenting every SBA loan agreement correctly to avoid costly mistakes including repairs or denials of the SBA guaranty on SBA loans. At Starfield & Smith, our lawyers for SBA loans pride themselves on providing our clients with SBA loan agreement solutions and guiding the SBA funding and closing process to get deals closed in an efficient and compliant manner. If you need an SBA loan overview by an attorney or have questions about SBA loan authorizations, SBA loan modifications, SBA loan preparations, SBA loan liquidations, or anything else related to SBA loan documentation and closing, an SBA lender legal advisor from our firm can be an important ally in your work to remain compliant with the SBA 7a or SBA 504 loan rules and regulations.
Get in touch with Starfield & Smith today to speak to an attorney about an SBA loan overview and your concerns related to the SBA loan servicing process. Call (215) 542-7070 to reach our lawyers for SBA lenders. You can even send an email to info@starfieldsmith.com or head over to our contact page and fill out the online form to get started with an SBA loan approval legal advisor. We serve clients all over the country and will be happy to match you up with the best local lawyers for SBA loans in your area. SBA funding and closing is a complicated process, so be sure you have a dedicated lawyer to give you the right advice about your next SBA loan agreement.
Why does your financial institution need an SBA compliance attorney?
Your institution needs an SBA compliance attorney to protect your guaranty, reduce processing errors, and maintain preferred lender status.
Research shows lenders spend up to 70 percent more time on SBA loans than conventional commercial loans. One documentation mistake can risk your guaranty or delay funding for weeks.
The stakes include:
- Guaranty protection: The SBA guarantees up to 85 percent on loans of $150,000 or less, but only with perfect compliance
- Processing burden: SBA 7(a) loans require 60 to 90 days to process versus 30 to 45 days for conventional loans
- Regulatory complexity: Current SOP 50 10 contains over 300 pages of requirements
Without proper legal guidance, you risk costly errors. The cost of one guaranty denial far exceeds the investment in competent counsel.
What regulatory knowledge should an SBA compliance lawyer have?
Your attorney should have comprehensive knowledge of Standard Operating Procedures, policy notices, lender participation requirements, and program-specific regulations.
Critical areas include:
- Current SOP mastery: SOP 50 10 introduced major changes to equity requirements and ownership eligibility
- Lender participation rules: SOP 50 56 governs delegated authority affecting over 1,400 participating lenders nationwide
- Policy notice tracking: The SBA issues 20 to 30 policy notices annually that modify existing requirements
- Program knowledge: Different requirements apply across 7(a), 504, and specialized programs
Should your attorney have lender examination experience?
Yes, examination experience helps attorneys prepare compliant loan files and guide you through audits successfully.
Why this matters:
- Audit frequency: Lenders with portfolios exceeding $10 million face mandatory examinations every 24 months
- Review scope: Examinations typically analyze 15 to 30 loan files in detail
- Remediation costs: Guaranty denials can cost lenders between $50,000 and $500,000 per loan, or more
- Status preservation: Poor results can jeopardize preferred lender authority, which accounts for 80 percent of all SBA 7(a) approvals
What track record should you seek?
Look for attorneys and firms who handle 500 to 1000 SBA loans annually, maintain strong guaranty preservation records, and have resolved repair requests successfully.
Experience indicators:
- Volume matters: Attorneys handling 100 or more transactions annually have seen full compliance scenarios
- Guaranty success: National purchase rates average 1.2 to 1.5 percent of balances
- Problem resolution: Success resolving repair requests issued in 3 to 5 percent of reviewed loans
Years of focused experience matter more than general banking knowledge.
How important are SBA office relationships?
Professional relationships facilitate faster issue resolution and clearer policy interpretation during the loan process.
Relationship advantages:
- Regional variations: The SBA operates 68 district offices with different interpretation patterns
- Faster resolution: Established channels resolve questions in days rather than weeks
- Appeal effectiveness: Only 15 to 20 percent of appeals succeed, but experienced counsel improves odds
What ongoing education should your attorney pursue?
Your attorney should attend industry conferences, complete SBA-specific continuing legal education annually, and actively follow policy updates.
Education markers:
- Conference participation: Major conferences occur 3 to 4 times annually with SBA official updates
- CLE requirements: Complete 2 to 4 hours of SBA-specific education yearly minimum
- Industry involvement: Membership in organizations like NAGGL with over 700 member institutions
Should your attorney understand both 7(a) and 504 programs?
Yes, if you offer both programs. They have different structures and compliance obligations that cannot be interchanged.
Why dual knowledge matters:
- Program volume: 7(a) accounts for 50,000 loans annually at $35 billion, while 504 adds 5,000 loans at $7 billion
- Structural differences: 504 involves three parties versus two-party 7(a) structures
- Documentation divergence: 504 closings require 40 to 50 documents versus 25 to 35 for 7(a)
What questions should you ask when interviewing?
Ask about transaction volume, practice concentration, problem resolution experience, and who handles your work personally.
Essential questions:
- Transaction volume: How many loans closed yearly? (Look for 500 or more)
- Practice concentration: What percentage involves SBA work? (Below 30 to 40 percent suggests divided attention)
- Response standards: Typical turnaround time? (24 to 48 hours for routine matters)
The right attorney answers directly and confidently, understanding your due diligence concerns.
A proper SBA 7a or SBA 504 loan process starts before a single document is signed. If you hope to be successful, you need to be prepared to document every step in the process from the SBA 7a loan application to collecting SBA 7a loan fees and SBA loan closing. The commercial lending specialists for SBA Loans at Starfield & Smith can help you improve your SBA 7a or SBA 504 loan process and remain in compliance. An SBA lender legal advisor from our firm can assist you with an SBA loan overview and all steps of the SBA loan agreement documentation and closing process, including these topics and many more:
- Evaluate the structure of the transaction, including a review of the SBA loan agreement terms, SBA 7a loan fees, and SBA loan preparation steps like commitment letters and checklists
- SBA loan overview including review and evaluation of due diligence
- Draft and negotiate loan documents like an SBA 7a loan application or SBA loan agreement
- Coordinate SBA loan closing, funding, and SBA loan liquidation
- Create and perfect security interests in all types of collateral
- Attorneys for SBA lenders to identify and assist with SBA compliance to applicable federal laws
Attorneys for SBA lenders to advise them on regulatory compliance and provide SBA lender oversight
Any SBA loan approval legal advisor knows that the steps required to originate a small business loan are very different from those involved with a traditional loan or mortgage. In addition, SBA lender oversight from regulatory agencies makes it even more important to get advice from attorneys that specialize in SBA loans. From SBA loan preparation to SBA loan closing to SBA liquidation and beyond, lenders must ensure they comply with all pertinent laws and regulations. A general attorney who’s not an SBA lender legal advisor may not have the expertise you need to keep up with the ever-changing regulations of the SBA, so you must hire a firm with dedicated commercial lending lawyers for SBA loans. Lawyers for SBA lenders have specialized knowledge about a wide range of small business lending topics including SBA loan authorizations, SBA loan preparations, SBA loan modifications, SBA loan servicing, SBA 7a loan fees, SBA loan liquidations, and more.
In addition to being trusted lawyers for SBA lending processes, Starfield & Smith can provide a lawyer to assist you with several other legal matters related to small business lending. Get in touch with us to speak to a lawyer about any of the following:
- SBA Creditor Rights Protection
- SBA Guaranty Purchase Reviews and Recovery
- SBA Loan Approval Legal Advisor
- Client Training including SBA Lender Matrix Training for Lenders
- SBA Loan Closing and documentation
- SBA Lender Licenses including Non-Bank Licensing
- SBA Lender Oversight and Compliance Audits or Reviews
- Business Litigation
- Title Services
- Starfield & Smith Express – Our own SBA lender oversight process is designed to provide a focused regulatory compliance audit at an affordable price point
An SBA lender legal advisor can assist you with all these and more. An SBA loan overview from Starfield & Smith lawyers for SBA lending processes can help you and your employees get up to speed on all the latest developments in SBA lending. If you need an SBA loan overview, help with SBA loan authorization procedures, SBA liquidation advice, or you have questions about SBA 7a loan fees, we can help. Our lawyers for SBA lenders know the SBA loan authorization process from start to finish, so call us for an SBA loan overview whether you have concerns about SBA loan authorizations, SBA liquidations, or if you want a lawyer to help you remain in good standing with state and federal regulators.
Dealing with regulators is simply a fact of life for any SBA lender. An SBA lender legal advisor from Starfield & Smith can help you stay in compliance during the entire SBA loan authorization process, from an SBA 504 or SBA 7a loan application to SBA loan liquidation, so you don’t run afoul of regulators like the Office of Credit Risk Management, the SBA’s Office of Inspector General, or the Department of Justice. Of course, if you do become the subject of a regulatory or law enforcement action during your normal SBA loan servicing, our commercial lending lawyers for SBA loans can advise you on the best way to proceed and provide an SBA loan overview to help you bring yourself into compliance. If you’re under scrutiny from federal or state regulators over your SBA loan authorization procedures, an SBA lender legal advisor may be your only hope of maintaining your SBA guaranty.
If you have questions about the SBA loan closing and documentation process, contact a knowledgeable attorney from Starfield & Smith for guidance. We have successfully provided lawyers for SBA loan authorizations, SBA loan closings, SBA loan modifications, and other small business loan legal services on thousands of loans all around the country. Now we want to assist you by providing commercial lending lawyers for your SBA loans. Call us at (215) 542-7070. You can also reach out to an SBA loan approval legal advisor online by sending an email to info@starfieldsmith.com or by visiting our contact page and filling out the online form. Attorneys for SBA lenders can be an important ally in your fight to remain in compliance with state and federal regulators.