https://starfieldsmith.com/wp-content/uploads/2025/12/114c1802-ff5f-4fd7-9caf-b18d85565278.mp3 The release of SOP 50 57 (Edition 4) introduced a new loan status—SBA Uncollectible—that sits between lender wrap-up and final SBA charge-off. While the designation is largely administrative from SBA’s perspective, it has meaningful implications for how lenders conclude liquidation activities and how future recoveries are handled. This article outlines when SBA Uncollectible is ... Read More

Navigating the financial landscape of SBA 7(a) lending requires a precise understanding of allowable fees and expenses and prohibited charges. For lenders, clarity on fee structures isn’t just about pricing a loan correctly. It’s a fundamental component of maintaining the SBA guaranty. Misclassifying a fee or overcharging a borrower can result in a repair or, ... Read More

The reality of participating in Small Business Administration lending programs is that regulatory scrutiny is not a matter of if, but when. For lenders, the government guaranty is often the most valuable asset in the portfolio, but it remains conditional and dependent upon strict adherence to federal regulations.  A compliance audit or review by the ... Read More

The Office of Credit Risk Management (OCRM) supervises and oversees more than 2,800 7(a) lenders managing over $120 billion in SBA loans. Mistakes in your compliance program can cost you your delegated authority or result in guaranty denials that directly impact your bottom line.  SBA’s oversight and supervision of its lender partners is rigorous and ... Read More

SBA lending offers a powerful tool for financial institutions to expand their portfolios while mitigating risk through the government guaranty. However, that guaranty isn’t automatic. It’s conditional based on strict adherence to the Small Business Administration’s complex regulatory framework.  Failure to maintain compliance can lead to repairs or a full denial of liability, turning a ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/12/eb030eb6-208e-4d26-9c59-1a98c9c5997f.mp3 At Starfield & Smith, we see one theme every year: lenders who take SBA compliance seriously keep their 7(a) guaranties intact. Those who don’t often find themselves on SBA’s naughty list, facing repairs and denials that could have been avoided with a little more discipline and documentation.  While the holiday season may be festive, ... Read More