Best Practices: SBA Enhances its Disaster Loan Program to Meet the Needs of Small Businesses Impacted by the COVID-19 Delta Variant
Effective September 8, 2021, SBA enhanced its COVID-19 Economic Injury Disaster Loan (EIDL) program to assist small businesses to meet their financial obligations and operating expenses despite the suffering created by the Delta variant. With over $150 billion in funding available, SBA is determined that small businesses receive the help they need to survive, especially ... Read More
Best Practices: Vessel Collateral
A vessel is defined by Merriam Webster as “a watercraft bigger than a rowboat.” There are many small businesses whose main assets consist of vessels, such as local fishermen, small cruise companies, boat rental companies, and parasail companies to name a few. When such a company comes to a lender for financing, the lender ... Read More
Best Practices: The Role of Trusts in SBA Lending
When SBA lenders encounter an applicant that is a trust or is owned by a trust, knowledge of SBA’s trust requirements is essential. Understanding SBA guidance not only helps lenders to determine whether or not a trust is eligible, but is also helps lenders to evaluate whether or not the trust must guaranty the loan, ... Read More
Best Practices: Fraud in the PPP Loan Program
The general purpose of the Cares Act, including the Payroll Protection Program (“PPP”), was to provide needed financial assistance to small businesses struggling with the economic chaos created by the COVID-19 pandemic. The speed with which loan applications were received and processed, and loan proceeds disbursed, was unprecedented. According to the SBA, as of August ... Read More
Best Practices: Litigation Expenses and PPP Loans: What is a Lender to do?
In this, our third article on SBA Procedural Notice No. 5000-812316 (the “Procedural Notice”), we turn our attention to potential litigation scenarios involving PPP loans and the choices a lender must make. Before the Procedural Notice was released last month, most lenders had been guided by SOP 50 57 2 (the “SOP”), including its Chapter ... Read More
Best Practices: Non-Compete Agreements: When Does an SBA Lender Need One?
When a Buyer is considering acquiring a new business, both the Purchaser and Lender should consider whether the Seller or any of its key employees could pose a threat to the newly acquired enterprise. If so, in order to protect the new venture, a non-compete agreement becomes a critical component to the purchase, one that ... Read More
