Best Practices: Why Do You Need a Business License Anyway?
https://starfieldsmith.com/wp-content/uploads/2024/02/e8312a16-a27e-4848-9218-0d918852c9a2.mp3 Although there is no extensive discussion in the SBA’s Standard Operating Procedure 50 10 7.1 (SOP) regarding borrower’s compliance with business license requirements, the SOP does make it clear that the lender must obtain evidence from the borrower of all licenses required to operate the business within 90 days after final disbursement of the ... Read More
Best Practices: Recent Changes to Beneficial Ownership Information (“BOI”) Reporting, and its Impact on Lending
https://starfieldsmith.com/wp-content/uploads/2024/01/9123263d-4c7f-4d09-99c5-05b60c0a3149.mp3 What is the Beneficial Ownership Information (“BOI”) Reporting Rule? The Financial Crimes Enforcement Network (“FinCEN”) recently implemented significant changes in beneficial ownership reporting, for the purpose of combating financial crimes. These regulations aim to enhance transparency by requiring companies to disclose the identities of their beneficial owners, defined as individuals who (i) directly or ... Read More
Best Practices: Refresher on Wrap-Up and Charge-off
https://starfieldsmith.com/wp-content/uploads/2024/01/e08ef048-750a-48ca-8ee4-1e5aab481178.mp3 Once a loan is purchased off the secondary market by SBA, lenders must proceed with liquidation before they can request a loan to be charged off. When liquidation is complete, the wrap up report and charge off tabs must be submitted to SBA. Lenders should be sure to keep current on SBA’s guidance to ... Read More
Best Practices: Duty to report wrongdoing to the SBA Office of Inspector General under SOP 50 57 3
https://starfieldsmith.com/wp-content/uploads/2024/01/f2d43f93-15ff-402c-85fe-a76cf3eb1735.mp3 As we continue highlighting updates to SBA loan programs, we now focus on Chapter 26 of SOP 50 57 3. This chapter covers the duty to report suspected irregularities involving SBA loan programs to the SBA Office of the Inspector General (OIG) for investigation and possible prosecution. The duty to report instances where fraud ... Read More
Best Practice: Understanding SOP 50 57 3: Denial of Liability on 7(a) Loan Guaranty
https://starfieldsmith.com/wp-content/uploads/2024/01/5b96cad3-d965-49fd-bacb-bc80c4417c57.mp3 Effective August 1, 2023, all SBA 7(a) loans (regardless of when they were originated) are subject to SBA’s SOP 50 57 3. The new SOP includes changes and clarifications to Chapter 25: Denial of Liability on 7(a) Loan Guaranty. When SBA May Deny Liability on a 7(a) Loan Guaranty Pursuant to 13 C.F.R. §120.524(a), ... Read More
Best Practices: Renewal and Update to SBA Form 1919
https://starfieldsmith.com/wp-content/uploads/2024/01/617791b7-f8ea-47d9-b567-568d3adb38c8.mp3 On December 26, 2023 SBA issued SBA Information Notice No. 5000-852422 which announced renewals and updates to certain SBA Forms. The most significant change is the issuance of a revised SBA 7(a) Borrower Information Form 1919. The new SBA Form 1919 conforms to changes in SOP 50 10 7.1 which requires an Applicant to ... Read More
