Best Practices: Dealing with Federal Tax Liens
When reviewing search results in connection with extending an SBA loan, lenders may come across a recorded Notice of Federal Tax Lien (NFTL) filed against a borrower or guarantor. Understanding the options for addressing a federal tax lien is important for credit underwriting and SBA compliance. A federal tax lien is created when a taxpayer ... Read More
Best Practices: Loan Servicing Request to Substitute Real Estate Collateral Part 2
Our June 15, 2022 article discussing servicing requests involving real estate collateral for SBA loans generated spirited discussion and feedback from several readers. See Best Practices: SBA Loan Servicing Request to Substitute Real Estate Collateral | Starfield & Smith Attorneys at Law (starfieldsmith.com). At the time of our prior article, due to the low interest ... Read More
Best Practices: The Nuances of Documenting Credit Not Available Elsewhere
Before any lender may finance an SBA guaranteed loan, it must assure compliance with SBA’s “credit elsewhere test.” Compliance is a critical eligibility prerequisite. The test is foundational and one that justifies the need for SBA financing. It is for this reason that SOP 50 10 6 includes very specific documentation requirements. See SOP 50 ... Read More
Best Practices: SBA Announces 7(a) Program Fees for Fiscal Year 2023
Effective August 31, 2022, SBA published Information Notice 5000-836123, concerning 7(a) Fees Effective October 1, 2022 for Fiscal Year 2023. This article will address items that have changed, specifically with regard to the 7(a) program fees, but excluding changes to the fees owed on SBA Express Loans made to Veteran-owned small businesses, as well as changes ... Read More
Best Practices: A Brief Overview about Co-ops
SBA lenders often take a security interest in all available fixed assets, including real estate owned by the applicant or guarantor, for certain loans, which may include a lien on a cooperative unit (or “co-op”). Perfecting a lien against a co-op can be challenging. One of the most common questions about co-ops is whether a ... Read More
Best Practices: New ALTA 2021 Title Insurance Policy Forms Begin to Rollout
Last revised in 2006, title insurance policy forms and endorsements published by the American Land Title Association (“ALTA”) were published last summer and are slowly being approved and adopted state by state. The state of Florida Office of Insurance Regulation approved the new forms with an effective date of October 1, 2022. Approval by other ... Read More
