https://starfieldsmith.com/wp-content/uploads/2026/07/9afa7132-09c2-4130-b1a5-7e884869c41f.mp3 Trusts are a regular feature in SBA loan structures, particularly where ownership, real estate, or estate planning considerations intersect. For lenders, that means trust documentation should never be treated as a secondary closing item. It raises core issues of eligibility, guaranty, authority, and collateral that must be addressed carefully under SOP 50 10 8, ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/06/7de70ef8-6e2c-4deb-9d61-412acdaa9387.mp3 No matter where you drive today, you are likely to see a cell tower rising above the landscape, sometimes disguised to resemble the surrounding trees. Cell towers have become a necessity of modern life, and their numbers continue to increase. As a result, it is increasingly common for real property collateral to include a ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/06/ea301e3a-0b1d-40c8-adc1-9ebecf7c4603.mp3 Adhering to the prudent lender guidelines, SBA lenders frequently obtain business valuations and real estate appraisals during loan origination, servicing, workout, and liquidation activities. While these reports are usually prepared for the lender’s underwriting and credit administration purposes, obligors often request copies of the reports and may later seek to rely upon them in ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/06/8d9528c0-8b39-40cc-accc-2468b4551ad3.mp3 One of the benchmarks of the SBA loan program is that SBA loans are made to operating small businesses and not passive entities. If a small business enters into a Management Agreement with a third party to assist with running its business, it presents a grey area for Lenders as to whether the business ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/06/b1e013c9-2de1-40e5-9b30-3fb8b5db1cc5.mp3 On May 28, 2026, the Small Business Administration (“SBA”) issued Policy Notice 5000-879464, Prior Loss Rule: Non-Controlling Ownership Update (the “Notice”), which provided guidance for SBA eligibility questions related to prior losses on SBA loans involving non-controlling minority investors. The Notice applies to all SBA 7(a) and 504 loans approved by SBA on or ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/05/644a1b4c-1cf8-4e35-b363-456d3c0ce7c8.mp3 While the SBA’s Eligible Passive Company (“EPC”) guidelines are well established, lenders continue to encounter SBA compliance issues that may threaten the SBA guaranty. The EPC rule is a limited exception to SBA regulations prohibiting financing for passive businesses and passive investments. Under SOP 50 10 8, an EPC may generally use loan proceeds ... Read More