Best Practices: Lending Oversight Reform Act of 2018
On June 21, 2018, the President signed into law the Small Business 7(a) Lending Oversight Reform Act of 2018 (Public Law No: 115-189, the “Reform Act”). The Reform Act, which received bipartisan support, strengthens the Small Business Administration’s lending program in several ways. First, it provides a statutory basis for the responsibility of the SBA’s ... Read More
Best Practices: Perfecting Liens on Non-Real Estate Collateral
One of the top reasons for a repair of an SBA guaranty is failure to obtain the required lien position on business assets. This closing error is easily avoided if the lender has systems in place to ensure that UCCs are filed properly and timely without any intervening liens. Below is a primer on the ... Read More
Best Practices: Changes to the SBA Servicing and Liquidation Matrix: Version 14
The SBA recently issued version 14 of its revised servicing and liquidation matrix which became effective on May 1, 2018. There are a few changes that all lenders need to be aware of in order to properly service and liquidate their SBA loans. The matrix continues to be a great guide for lenders to consult ... Read More
Best Practices: Avoiding Lender Liability Claims
Lenders participating in the U.S. Small Business Administration lending programs often encounter borrowers who are unrepresented by legal counsel for the loan transaction. As a result, borrowers try to rely on the loan closer, business development officer, and frequently lender’s closing counsel for guidance on due diligence items such as the EPC/OC lease, compliance with ... Read More
Best Practices: Title and Survey Objection Notices – Time is of the Essence
A series of recent SBA financed real estate transactions handled by our firm highlighted the importance of identifying title issues early in the closing process. It is imperative lenders examine title exceptions to identify any matters that may impact the proposed use of the real property they are financing, and may some day own by ... Read More
Best Practices: To Fee, Or Not To Fee?
That is certainly the question in SBA lending today. SBA has long regulated the types of fees that can be charged by an SBA lender to a borrower. Recently, SBA’s Office of Credit Risk Management (“OCRM”) has been taking a much closer look at participating lenders’ practices in connection with OCRM’s mission to conduct reasonable ... Read More