Articles

https://starfieldsmith.com/wp-content/uploads/2024/09/d412c26e-e25c-429e-b4e1-f74b20cfb404.mp3 Following a default, lenders must perform a timely site visit in order to inspect collateral, determine its recoverable value and develop a liquidation strategy. SBA requires the site visit to be completed within 60 days of a payment default or 15 days of a non-payment default event. Prior to the site visit, lenders should ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/09/2d07edec-b53e-4533-a858-54b074b62a46.mp3 A tenant improvement allowance may be negotiated between the borrower and the landlord where the landlord agrees to provide funds towards the leasehold improvements. These allowances benefit the tenants in providing relief to what are often start-up businesses. Landlords have an incentive to offer them because the value of the real property is increased ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/09/406a7e86-3b65-4858-a99d-e2f94c612aed.mp3 The 504 loan program is used to finance fixed assets for eligible small businesses, primarily costs related to the acquisition and/or improvement of real estate or other long-term fixed assets. However, under specific circumstances, a 504 loan can be used to finance a change of ownership, provided all other 504 loan program requirements, including ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/08/8e2bff5f-1c54-4fe2-b3dd-b2e72ecb2a14.mp3 An updated SBA Form 1086 – Secondary Participation Guaranty Agreement, which is used to sell the guaranteed portion of an SBA 7(a) loan in the secondary market, was issued effective August 1, 2024. SBA has stated that its intention is to streamline and update the Agreement to reflect recent SBA policy changes, and to ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/08/a6d26be2-da0e-4a32-a280-347b25a1d3e9.mp3 “Experience is what you get when you didn’t get what you wanted.” Randy Pausch, The Last Lecture Since August 1, 2023, SBA lenders have been instructed by the SBA to follow the “policies and procedures the Lender uses for its similarly-sized non-SBA guaranteed commercial loans” for 76 different SBA loan requirements.  This new approach ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/08/f7403bbc-1bb6-4266-9bb6-ba4d5833e398.mp3 During the 7(a) Connect Quarterly Update call on July 9, 2024 the Office of Credit Risk Management (“OCRM”) demonstrated an example of how it reviews a specific loan program requirement when reviewing loan files.  The example used was use of proceeds, occupancy and leasing requirements, and responsibilities when the borrower is leasing space. In ... Read More