Best Practices: Updated Guaranty Purchase Review Standards under SOP 50 57 3
https://starfieldsmith.com/wp-content/uploads/2023/09/8de20eb2-36ac-4aa0-8013-ec3c17838d63.mp3 Under the SOP 50 57 3, SBA has added a new provision that alters the perspective under which SBA will review a lender’s actions. This revised language states: For the purposes of determining Lender compliance with SBA Loan Program Requirements, SBA will apply the requirements of SOP 50 10 and SOP 50 57 in ... Read More
Best Practices: Don’t Skimp on SBA Eligibility Determinations
https://starfieldsmith.com/wp-content/uploads/2023/09/5a8ef01f-844a-4319-83a0-9d5593f456b2-1.mp3 “If you keep your eye on the profit, you’re going to skimp on the product. But if you focus on making really great products, then the profits will follow.” -Steve Jobs The SOP 50 10 7, which became effective on August 1, 2023, begins with the following statement: “[d]etermining whether an Applicant is eligible ... Read More
Best Practices: Construction Performance Bonds Under SOP 50 10 7
https://starfieldsmith.com/wp-content/uploads/2023/08/cc70de85-f2e4-46c1-9ffa-e1152cd83f0a.mp3 Since the issuance of SOP 50 10 7 there is an open question as to whether SBA Lenders must obtain evidence of performance and payment bonds for 7(a) construction loans. For background, performance and payment bonds are issued between the construction contractor and the owner of the construction project. If a contractor fails to ... Read More
Best Practices: Environmental Requirements under the New SOPs
https://starfieldsmith.com/wp-content/uploads/2023/08/a7cc1345-f709-4191-aac3-eb235954ac1a.mp3 With the SOP 50 57 3 and the SOP 50 10 7 that both went into effect on August 1, 2023, lenders should be mindful of how updates to the sections covering environmental requirements may impact their environmental policies and procedures moving forward. SOP 50 10 7 contained more sweeping changes for loan closings, ... Read More
Best Practices: Lender Servicing and Liquidation Responsibility and Authority under SOP 50 57 3
https://starfieldsmith.com/wp-content/uploads/2023/08/ce375747-1464-4ac3-840d-89248b132ee4.mp3 After August 1, 2023, all SBA 7(a) loans (regardless of when they were originated) are subject to SBA’s SOP 50 57 3. The new SOP includes a few changes and also clarifications to lender’s responsibilities and authority with regard to servicing and liquidation, litigation, decision-making, recordkeeping, loan monitoring, and reporting requirements. Servicing and Liquidation ... Read More
Best Practices: What SOP 50 10(7) Does Not Tell Us
https://starfieldsmith.com/wp-content/uploads/2023/08/5455fec6-4388-4646-a1f3-8ceb8147bf82.mp3 Over the past few weeks we have discussed many of the changes in the SOP 50 10 (7). Now that it is in effect, and as we wait for the pending technical update from SBA, it’s worth pointing out what is not in the new SOP compared to SOPs of the past, and how ... Read More
