Best Practices: Funding Equity Injection through a Corporate Affiliate
Although funding equity injection through a borrower’s affiliated entity is not an uncommon practice, lenders must exercise care in these circumstances. On many occasions, such transfers of funds from the affiliate to a borrower are characterized as gifts. This is problematic as corporations do not “gift” monies to other corporations; corporations have a duty to ... Read More
Best Practices: Perfecting Liquor License Liens
SBA loans are often used to finance restaurants, liquor stores or other retail establishments that sell, and in some cases, serve, alcoholic beverages to their customers. As SBA lenders structure their loans for these businesses and determine what collateral is required for their loans, questions may arise regarding whether a lien can be placed on ... Read More
Best Practices: Purchase Money Security Interests: Considerations for specific assets purchased with SBA loan proceeds
Generally, an SBA lender will need to secure its loan with a perfected security interest in specific equipment purchased, or to be purchased, with loan proceeds. Lenders must take special care to ensure lien priority and perfection of these purchase-money security interests in equipment (“PMSI”); particularly if such equipment has significant value. Prior to loan ... Read More
Best Practices: The Need to Review Title Exceptions
Most, if not all, commercial real estate developments contain covenants, conditions, and restrictions (commonly called “CC&Rs”) used to regulate the use, appearance, and maintenance of commercial real property. These CC&Rs are recorded in the public records and run with the land, i.e., in perpetuity, unless otherwise terminated. They are identified as title exceptions in title ... Read More
Best Practices: Lender’s Obligations during PPP Forgiveness
Now that the PPP loan program has closed to new PPP loan originations, lenders may shift their full attention back to the forgiveness process. It is important that lenders continue to keep up with the latest guidance to ensure that they are processing forgiveness applications properly. Lenders should start by making sure they are aware ... Read More
Seven Starfield & Smith Attorneys Names to Pennsylvania and Delaware 2021 Super Lawyers and Rising Stars Lists
Starfield & Smith is proud to announce that seven of its attorneys have been named to the 2021 Pennsylvania and Delaware Super Lawyers lists; Recognized as Super Lawyers: Ethan Smith (Banking) David Starfield (Banking) Norman Greenspan (Business Litigation) Recognized as Rising Stars: Jennifer Borra (Banking) Lyndsay Rowland (Creditor Debtor Rights) Katherine Tohanczyn (Banking) Demetri Braynin (Banking) Starfield & Smith has ... Read More
