https://starfieldsmith.com/wp-content/uploads/2025/07/64fc3abe-8e77-4a05-99c1-d6693e7efa46-1.mp3 Lenders must ensure they maintain the proper lien position on a borrower’s business assets throughout the life of an SBA loan. Most SBA 7(a) loans are secured by a lien on the borrower’s business assets, which is perfected by filing a UCC financing statement—commonly referred to as a UCC-1—at the time the loan is ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/07/9084130c-f2be-46b2-8681-b27828931430.mp3 With the issuance of SOP 50 10 8, which became effective June 1, 2025, SBA 7a Lenders with delegated PLP authority have had to make some changes in how they process loans.  Prior to SOP 50 10 8, a lender with delegated PLP authority could choose to submit a loan to SBA through non-delegated ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/06/310b0513-69cf-4930-96c2-725a590edd58.mp3 One of the benchmarks of the SBA loan program is that SBA loans are made to operating small businesses and not passive entities. If a small business enters into a Management Agreement with a third party to assist with running its business, it presents a grey area for Lenders as to whether the business ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/06/ecf2ada2-1416-4d11-a9c4-e7dc21c86ed6.mp3 During the closing process, lenders anticipate their Phase I Environmental Reports will show that real estate serving as collateral is clean. However, this is not always the case and lenders should be prepared for environmental issues to arise during due diligence – particularly when working with businesses in environmentally sensitive industries—such as gas stations, ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/06/5ce3c78e-4912-48ee-895c-f2da27a873f8.mp3 On May 29, 2025 the U.S. Small Business Administration (“SBA”) issued SBA Information Notice 5000-868665 and released the Standard Operating Procedure 50 10 8 with technical updates (“Updated SOP”), which became effective June 1, 2025.  The Updated SOP replaced the version which was previously distributed for review on April 22, 2025.  The SBA also provided ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/06/f6a0c6dd-4e3a-4110-9fde-651ea9eefd08.mp3 What’s old is new again.  Effective June 1, 2025, SOP 50 10 8 (“SOP”) brings back the SBA Franchise Directory (“Directory”) in a welcome blast from the past for SBA lenders.  See https://www.sba.gov/document/support-sba-franchise-directory.  The SOP shifts responsibility for franchise eligibility reviews from the lender back to the SBA.  Many seasoned SBA lenders will recall the ... Read More