Best Practices: Documenting Credit Not Available Elsewhere
The SBA program is deeply rooted in the idea in providing support only to “applicants for whom the desired credit is not otherwise available on reasonable terms from non-Federal sources.” 13 CFR §120.101. The credit elsewhere test has changed over time and lenders often have questions regarding how to properly document their credit elsewhere analyses ... Read More
Best Practices: Take the Opportunity to Comment on the SBA’s Most Recent Proposed Rules
Pursuant to the requirements of the Small Business 7(a) Lending Reform Act of 2018, Pub. L. 115-189 (“SBA Reform Act”) that amended the Small Business Act, 15 U.S.C. §651 et seq., the SBA published in the Federal Register proposed rules designed to implement the provisions of the SBA Reform Act. 84 Fed. Reg. 29092 (proposed ... Read More
Best Practices: International Business Operations Under SOP 50 10 5(K)
SOP 50 10 5(K) addresses eligibility issues surrounding Small Business Applicants that are engaged in international business operations who apply for government guaranteed loans under the 7(a) loan program and the International Trade Loan program. If a Small Business Applicant is engaged in international business operations, the Applicant is not permitted to use 7(a) loan ... Read More
Best Practices: Preparing UCC-1 Financing Statements
In the context of SBA lending, properly perfecting security interests in required collateral is one of the most important steps in closing a SBA loan. For personal property collateral, lenders obtain a security agreement from the borrower and file a UCC-1 financing statement against the borrower securing a lien on the borrower’s assets as required ... Read More
Best Practices: Small Business Lender Oversight Reform Act Proposed Rule
On June 21, 2018 Congress passed the Small Business 7(a) Lending Oversight Reform Act of 2018 (the “Act”). The Act required the SBA to prepare and circulate regulations to implement its provisions. On June 21, 2019 the SBA issued a proposed rule including the required regulations for comment. All comments must be received by August ... Read More
Best Practices: The future is here: Florida launches Remote Online Notarization
Early last month, Florida’s Governor signed into law Chapter 2019-71 creating a new section in Chapter 117 of the Florida Statutes entitled “Online Notarizations.” The new law authorizes and provides oversight for the use of Remote Online Notarizations (“RON”) by Florida notaries. While Florida follows a number of states joining this national trend expanding the ... Read More