Articles

https://starfieldsmith.com/wp-content/uploads/2024/07/7d446c7a-c928-4485-a5f0-9869a428d18f.mp3 An important and beneficial aspect of the SBA 7(a) Loan program is the lender’s ability to sell the guaranteed portion of an SBA Loan.  There is an active secondary market for loans backed by the federal government.  This allows lenders to increase their liquidity while also enabling lenders to issue more loans at the ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/07/9cd2dceb-4151-4472-810b-9bb9de359c28.mp3 Driven by technological advancements and societal trends towards self-care and holistic well-being, the medical spa industry has been experiencing significant growth. For lenders offering financing to aid these businesses, understanding the licensing requirements for owning and operating a medical spa is crucial. Like any business, a medical spa must obtain the necessary local business ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/06/180e00a2-56a2-44e9-8db2-c03f1ca9d4c6.mp3 The SOP 50 10 7.1 (the “SOP”) contains additional documentation requirements for gas station loans that SBA admits can be “voluminous and complex” for Lenders. This article will review the SOP requirements for gas station loans found in Appendix 7 of the SOP as well as best practices for Lenders to utilize when financing ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/06/34a7fc6c-0399-4408-8e89-8650399c60d3.mp3 Since the SBA E-Tran Terms and Conditions no longer contains specific requirements for title insurance, lenders should use prudent lending standards and generally accepted principles of commercial lending as a guide to determine whether title insurance should be obtained on their SBA-guaranteed loans. SBA generally expects lenders to obtain a loan policy of title ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/06/43947614-e0bf-4ada-84a9-5bdd62123626.mp3 SBA has dramatically changed the way lenders process franchise loans under the SOP 50 10 7.1 (“SOP”).  Lenders no longer need to review franchise documentation for affiliation in determining franchise eligibility.  SBA stopped updating its SBA Franchise Directory over a year ago, which previously confirmed eligibility for Lenders contemplating SBA financing to a proposed ... Read More

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