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
Best Practices: What’s It Worth To You? Balancing The SBA’s 7a Business Valuation Requirements With a Seller’s Asking Price.
When a small business owner looks to sell his or her business, the asking price generally includes not only the financial value and market benefits of the business but also emotional costs and returns. In many instances, an unsophisticated and eager buyer may overlook how such factors could be artificially inflating the asking price. As ... Read More
Best Practices: Due Diligence Can be the Best Deterrent for Fraud
Fraud has been popping up more and more frequently in SBA lending – from fraud in the underwriting of a loan, to fraud during the loan closing, to fraud occurring after the loan has closed. Fraud can be committed on loans of all sizes and can involve anyone who has an interest in the transaction, ... Read More