Articles

https://starfieldsmith.com/wp-content/uploads/2024/05/0993c012-46c9-49e2-a8d1-a2d541bd0b35.mp3 It has been a longstanding rule that a lender cannot sell a loan on the secondary market if it is not fully disbursed. However, changes in the most recent versions of the SOPs have clarified SBA’s position regarding certain loan structures that utilize loan splitting and multi-disbursement loans and secondary market sales. Guidance for ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/05/3a7d958a-8f44-4157-af94-601ac083e0a4-1.mp3 The general rule is that a purchaser of a business is not liable for seller’s legal obligations unless those obligations are expressly assumed by the purchaser in the purchase contract.  However, there are numerous state laws that create successor liability for the purchaser of a business. The bulk sales statute is one such example ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/05/27a435eb-490f-468f-9d00-53269b5f27c8.mp3 On May 7, 2024, the Federal Trade Commission published a final rule (the “Rule”) that results in a federal ban on non-compete clauses nationwide, with limited exceptions. The Rule, effective September 4, 2024 (the “Effective Date”), provides that it is an unfair method of competition- and therefore a violation of section 5 of the ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/05/824b5cd1-8c54-4f7c-93e1-0a377cdfa374.mp3 Effective May 30, 2024, the criminal background review process for those applying for SBA guaranteed loans will undergo a significant change.  It removes restrictions the SBA deems limit access to capital to otherwise qualified individuals with a prior criminal record.  Incorporated in the Final Rule on Criminal Justice Reviews for the SBA Business Loan ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/05/a1e18e56-1694-425e-ae0c-5f618aaf5e68.mp3 Earlier this year the SBA Office of Credit Risk Management (“OCRM”) assumed responsibility for and rolled out a new pilot process for submission of Lender Service Provider Agreements (“LSPAs”) in hopes of streamlining the process for Lenders and Lender Service Providers (“LSPs”) to obtain SBA approval of their LSPA as required in SOP 50 ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/04/151e143d-d4c3-46e9-b91c-0dacdee46a98.mp3 Pursuant to 13 CFR § 120.160(a), all SBA 7(a) loans must be guaranteed by at least one person or entity. Generally, guarantees are required of any individual or entity who owns 20% or more of a borrower entity. If no individual or entity owns at least 20% of a borrower entity, then at least ... Read More