The last few days before a closing can be a hectic time. Each party has its own responsibilities and everyone must make sure that there is an agreement as to when and how a closing will occur. No matter how chaotic this time can be, lenders should consider preparation of written closing instructions to be ... Read More

On September 17, 2019, SBA provided an advance notice of proposed rulemaking (“ANPRM”) seeking the public’s comments to changes to the regulations governing SBA’s Export Loan Programs in an ongoing effort to increase lender participation and usage of such programs. See 84 FR 48807, RIN: 3245-AG95.  According to the SBA, small to medium sized businesses ... Read More

The Office of the Inspector General (“OIG”) established the High Risk 7(a) Loan Review Program in 2014 to minimize losses on high dollar/early-defaulted U.S. Small Business Administration (“SBA”) guaranteed 7(a) loans, and to confirm compliance with SBA program requirements. In 2019, the OIG chose to review 8 high dollar/early defaulted 7(a) loans as part of ... Read More

The importance of documenting one’s credit elsewhere (“CE”) analysis cannot be overstated. Arguably, no other provision of the Small Business Act has come under closer scrutiny.  This is understandable, given that no applicant who may obtain CE on reasonable terms may participate in the SBA’s loan programs.  The integrity of the core concept behind the ... Read More

After a loan is closed and disbursed, a Borrower may make a request or circumstances may arise which require a modification to the loan.  For any commercial loan, a servicing action should be considered and documented carefully and consistently with the Lender’s internal lending practices. For SBA loans, the bar is higher since Lenders must ... Read More

SBA lending, with its myriad rules, regulations and ever-changing guidelines, has always been a challenge for compliance-minded lenders.  One of the most difficult SBA topics for lenders to deal with has been affiliation, with its multiple ways for businesses to be deemed affiliated with one another.  Although complex, the rules concerning affiliation are usually somewhat ... Read More