Best Practices: Post-Closing Follow Up for Commercial Construction Loans
When closing a commercial construction loan, a lender’s due diligence gathering typically does not end at the loan closing table. Once a construction loan closes, a lender must carefully follow up on its post-closing conditions. In most cases, the borrower provides the plans, permits, construction documents, and contractor’s insurance pre-closing. However, there are cases, such ... Read More
Best Practices: Obtaining And Executing On A Judgment With Respect To A SBA Loan – Does It Make Economic Sense?
When a lender has a SBA loan that has gone into default the lender must take steps to liquidate the collateral securing the loan. Sometimes borrowers are cooperative and most times they are not. In cases where you have an uncooperative borrower, litigation may be necessary to liquidate the collateral. However, in cases where litigation ... Read More
Best Practices: Finding The Perfect Approach: How to Secure a Lien on Intellectual Property Collateral
In today’s technological world many small businesses seek to protect their intangible creations, often referred to as intellectual property, by obtaining registered copyrights, trademarks and patents on these items. As with other types of personal property, to perfect a security interest in intellectual property, a lender must not only document the interest in sufficient detail ... Read More
Best Practices: Documenting Working Capital Disbursements
On last Tuesday’s SBA 7(a) connect call, SBA’s Office of Credit Risk Management updated the 7(a) lending community regarding several new areas of inquiry that it is focusing on in FY 2020. Among these items includes a focus by the SBA on the adequacy of lenders’ underwriting and documentation of working capital disbursements on their ... Read More
Best Practices: Complying with Section 2202 of the Taxpayer First Act
On July 1, 2019 the Taxpayer First Act was signed into law. According to the IRS website, “the legislation aims to expand and strengthen taxpayer rights and to reform the IRS into a more friendly agency…” One of the reforms that will directly impact SBA Lenders imposes a requirement on Lenders regarding the re-disclosure of ... Read More
Best Practices: Impact of the OIG’s Audit Report on SBA’s Oversight of High-Risk Lenders
On November 12, 2019, the SBA’s Office of the Inspector General (OIG) published a report on its Audit of SBA’s Oversight of High-Risk Lenders (Report). While the Report is directed principally at reviewing the actions of the Office of Credit Risk Management (OCRM) in meeting its mission of maximizing the efficiency of SBA’s lending programs, ... Read More
