Best Practices: Determining Affiliation of Nontraditional “Franchise” Agreements under SOP 50 10 5 (J)
In my December 13, 2017 article, I provided an overview of the franchise review process under the SOP 50 10 5(J). See https://starfieldsmith.com/article/best-practices-franchise-reviews-under-sop-50-10-5j/. For SBA loan applicants operating under traditional franchise agreements, the process for determining eligibility and affiliation is relatively straightforward. Under the SOP 50 10 5 (J), SBA maintains a list of eligible ... Read More
Best Practices: Recent Initiatives for Rural America and Small Main Street Businesses
In an effort promote stronger businesses and agricultural economies in rural America, the Administration recently introduced a series of new initiatives. In April, the U.S. Department of Agriculture (USDA) and the Small Business Administration (SBA) executed a Memorandum of Understanding (MOU) aimed at enhancing collaboration between the two agencies serving rural and agricultural communities. In ... Read More
Best Practices: Additional Revisions Made to the 2018 SBA 7(a) Authorization Wizard
As discussed in last week’s article, on August 14, 2018, the Small Business Administration (“SBA”) released the new 7(a) Authorization Wizard for immediate download and use. Following are some non-state specific revisions to the Wizard that may be of interest: The SBA is no longer requiring the escrow account language be included in the Repayment ... Read More
Best Practices: The Current “State” of Affairs: Revisions to the SBA’s State Specific Requirements in the 2018 Authorization
On August 14, 2018, the Small Business Administration (“SBA”) released the new 7a Authorization Wizard for lenders to download. While the new Authorization contains numerous changes and additions from the 2011 version, this article highlights only the revisions and additions relating to state specific requirements. In addition to complying with SBA and other federal regulations, ... Read More
Best Practices: Lender Considerations for the Sale of Collateral in SBA Loan Liquidations
There may come a time when a SBA Lender must face a liquidation scenario with an a Borrower. When faced with liquidating assets of a SBA 7(a) Loan, the Lender should first check the SBA Servicing and Liquidation Actions 7(a) Lender Matrix. A review of the 7(a) Lender Matrix shows that a “public, private or ... Read More
Best Practices: What Do You Do When Your Real Estate Appraisal Comes in Low?
For SBA loans greater than $250,000 and collateralized by commercial real estate, SOP 50 10 5(J), Subpart B, Chapter 4, Section IV, Paragraph A requires that lenders obtain a real estate appraisal by an independent, state-licensed or state-certified appraiser. If the commercial real estate has an estimated value greater than $1,000,000, then lenders must use ... Read More