Best Practices: Refinancing MCA Debt
https://starfieldsmith.com/wp-content/uploads/2024/12/2147d177-1c9e-432c-ac38-64f155df38ed-1.mp3 A current hot topic in SBA lending has been whether Merchant Cash Advance (“MCA”) debt is eligible for refinancing under SBA’s 7(a) guidelines. The growing demand to refinance these facilities combined with the fact that SOP 50 10 (the “SOP”) was silent as to whether these facilities could be refinanced, has, until recently, left ... Read More
Best Practices: Unpacking The New 7(A) Lender Matrix
https://starfieldsmith.com/wp-content/uploads/2024/12/e87f34b2-0d9c-40c2-b1b6-9cfa05627209.mp3 On November 5, 2024, the U.S. Small Business Administration (the “SBA”) Office of Financial Program Operations released an updated Servicing and Liquidation Actions 7(a) Lender Matrix (the “Matrix”). This new version 16 contains the first revisions to the Matrix in over four years — the last version being released by the SBA in February ... Read More
Best Practices: The Art of the Credit Bid
https://starfieldsmith.com/wp-content/uploads/2024/11/speech_20241119200052065.mp3 Many SBA lenders have experienced foreclosure sales, either judicial or non-judicial, and the request to set your credit bid. Since there are potential pitfalls during this process that can impact the SBA guaranty, lenders must be caution when determining their credit bid. The section on Credit Bids is located within Chapter 18 of SOP ... Read More
Best Practices: A General Guide to Ordering Public Records Searches
https://starfieldsmith.com/wp-content/uploads/2024/11/0590fefb-df7f-4408-873b-cbac9b975da5.mp3 Failure to perfect and maintain liens in the proper lien position against collateral is consistently one of the top reasons for repairs of the SBA Guaranty. Therefore, an important part of a lender’s due diligence is ordering searches on borrowers, guarantors and sellers to make sure the collateral securing the loan is not encumbered ... Read More
Best Practices: Refresher on International Trade Loans Under SOP 50 10 7.1
https://starfieldsmith.com/wp-content/uploads/2024/11/9a7051cd-6ebc-4a11-b6f8-6af36b2ac785.mp3 A borrower located in the United States that is engaged in international business operations may qualify for an International Trade Loan. An International Trade Loan can be used to improve the competitive position of a borrower that is a current exporter or to develop new export markets. An SBA lender can make an International ... Read More
Best Practices: Changes to Lender Responsibilities in SOP 50 57 3.1
https://starfieldsmith.com/wp-content/uploads/2024/10/10791562-05fd-4394-9378-f3c0d4d62ead.mp3 On August 1, 2023, the SOP 50 57 3, 7(a) Loan Servicing and Liquidation became effective. SBA has published an update, SOP 50 57 3.1, which has been amended to clarify and update certain sections based upon questions and comments from lenders and other third parties. Along with the new SOP, SBA also released ... Read More