Articles

https://starfieldsmith.com/wp-content/uploads/2025/09/ec172834-627a-423e-936b-655342da283e.mp3 For many lenders, collateral perfection remains one of the most critical — yet often misunderstood — aspects of SBA compliance. Among the collateral types that present unique challenges are brokerage and other securities accounts. A common misconception is that a standard UCC-1 financing statement is sufficient to perfect a lien on such an account ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/09/81a47ac1-c43b-4fec-b425-9cd0d6efce50-1.mp3 Substitution of real estate collateral is a servicing action that SBA lenders occasionally face when a borrower requests to release existing real estate collateral in exchange for a replacement property. A common example of this is when a guarantor wants to sell their home that is pledged as collateral on an SBA loan and ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/08/e3d50abd-9315-42aa-ab90-b4bc2bb56df0.mp3 Under the new SOP 50 10 8, effective June 1, 2025, the use of 7(a) loan proceeds to finance partial changes of ownership remains permissible, consistent with 13 CFR § 120.202 as amended on April 10, 2023.  While this iteration of the SOP places limits and adds certain restrictions, it allows SBA lenders to ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/08/02dbaf4a-e15c-4994-ae9b-fc3b7dacd673.mp3 When Lenders are dealing with a borrower who is falling behind on payments or moving into default territory, it may be hard for a lender to determine when to send a past due letter (also known as a reservation of rights letter) versus a full acceleration letter. This article explains the differences between an ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/08/c914c3d7-5b35-4762-80eb-fe488051861f.mp3 SOP 50 10 8, which became effective on June 1, 2025, restored some of the prudent practices standards from prior SOPs as well as added some needed, clear minimum collateral requirements.  For SBA Lenders, the result is a more clearly defined framework for securing Standard 7(a) loans. While many concepts from prior to the ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/08/3dedca70-5e65-4b2b-b0b8-38c87bd485fa.mp3 The U.S. Small Business Administration (“SBA”) has strict eligibility standards for its 7(a) and 504 loan programs.  In the current SOP 50 10 (8), the SBA removed the concepts found in SOP 50 10 7.1 that (i) basic SBA eligibility would be determined by SBA through submission of certain information into E-Tran, and (ii) ... Read More