The recently revised Standard Operating Procedure 50 10 5(K) (“SOP”) defines the Lender Service Provider (“LSP”) Agreement as “a written contract between a Lender and an Agent who assists the lender with 7(a) loan program loan origination and servicing duties.” In assisting with loan origination and servicing duties, the LSP acts as an authorized representative ... Read More

The SBA program is deeply rooted in the idea in providing support only to “applicants for whom the desired credit is not otherwise available on reasonable terms from non-Federal sources.” 13 CFR §120.101. The credit elsewhere test has changed over time and lenders often have questions regarding how to properly document their credit elsewhere analyses ... Read More

Pursuant to the requirements of the Small Business 7(a) Lending Reform Act of 2018, Pub. L. 115-189 (“SBA Reform Act”) that amended the Small Business Act, 15 U.S.C. §651 et seq., the SBA published in the Federal Register proposed rules designed to implement the provisions of the SBA Reform Act.  84 Fed. Reg. 29092  (proposed ... Read More

SOP 50 10 5(K) addresses eligibility issues surrounding Small Business Applicants that are engaged in international business operations who apply for government guaranteed loans under the 7(a) loan program and the International Trade Loan program.  If a Small Business Applicant is engaged in international business operations, the Applicant is not permitted to use 7(a) loan ... Read More

In the context of SBA lending, properly perfecting security interests in required collateral is one of the most important steps in closing a SBA loan.  For personal property collateral, lenders obtain a security agreement from the borrower and file a UCC-1 financing statement against the borrower securing a lien on the borrower’s assets as required ... Read More

On June 21, 2018 Congress passed the Small Business 7(a) Lending Oversight Reform Act of 2018 (the “Act”).  The Act required the SBA to prepare and circulate regulations to implement its provisions.  On June 21, 2019 the SBA issued a proposed rule including the required regulations for comment.  All comments must be received by August ... Read More