Articles

https://starfieldsmith.com/wp-content/uploads/2024/10/87b78905-57ad-4804-89b0-7292e2cdb76e.mp3 An SBA loan may be used to finance the start-up, purchase, or refinance of Federal Express (Fed Ex) delivery routes.  This type of transaction is unique and nuanced, and it is important for SBA lenders to understand certain key points when providing financing for this type of business.  This article is intended to highlight ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/10/f2372334-e86e-4a97-8ba2-5525b35f9815.mp3 Franchise lending continues to be a hot topic amongst SBA lenders, as they set new policies and procedures for determining eligibility of franchise concepts and documenting their loan files.  There are a multitude of resources to assist lenders in assessing eligibility, and I offered some practical tips in my prior article published earlier this ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/09/00c606bd-3393-4df7-aa7f-b3aab2724de4.mp3 The Equal Credit Opportunity Act (ECOA), implemented by the Regulation B as documented in 12 CFR Part 1002, underscores the congressional determination that consumers and businesses should receive a notice of the reasons why the lender has rejected borrower’s application for an extension of credit following an adverse action. An adverse action is defined ... Read More

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