Best Practices: SBA Requirements for Historic Registry Properties
Section 106 of the National Historic Preservation Act requires Federal agencies to consider whether their federally-funded projects directly or indirectly adversely impact properties and sites that are listed or eligible to be listed on the National Register of Historic Places (“NRHP”) (54 U.S.C. § 300101 et seq.; 36 CFR §§ 60.1 et seq. and 800.1 ... Read More
Best Practices: Common Insurance Errors and Their Impact on the SBA Guaranty
Insurance requirements are different for every loan and are based on the type of collateral being taken, the type of business that is borrowing funds and the project for which such funds are being utilized. Two types of business insurance are required for almost every loan: hazard insurance and liability insurance. Lenders must follow SBA ... Read More
Best Practices: The Burden of Proving Your Guaranty Purchase Case
In the American criminal justice system, defendants are afforded a presumption of innocence which is derived from the fifth and fourteenth amendments to the Constitution. This standard, which has been enshrined through countless police procedurals and courtroom dramas, has become, in the minds of many people, the commonplace standard of proof in dealings with the ... Read More
Best Practices: The Importance of Lien Release Language in Payoff Letters
Failure to obtain the proper lien position on collateral is one of the most common reasons for a repair of the SBA guaranty, but the good news is lenders can take steps to reduce the likelihood of intervening liens. While title insurance is often used to ensure a lender has the proper lien position on ... Read More
Best Practices: Proposed Rule: Changes to Hazard Insurance Requirements for Smaller Loans
The U.S Small Business Administration (SBA) proposed to amend various regulations governing the SBA’s 7a loan and 504 loan programs, one of which is a change in the required collateral hazard insurance for loans of $150,000.00 or less. The current rule states that for 7(a) and 504 loans, the SBA requires hazard insurance on all ... Read More
Best Practices: The SBA Is Bringing False Claims Act Cases Against PPP Lenders
The amount of PPP loan fraud that has apparently occurred is astonishing. Government investigations have determined that the amount of fraudulent PPP loans is in the tens of billions of dollars, if not more. The government wants to get back the money that should never have been loaned in the first place. The government has ... Read More