Best Practices: The SBA Restaurant Revitalization Fund
Arguably one of the hardest hit industries in the United States during the COVID-19 pandemic has been the restaurant industry. Restaurants, bars, caterers, and even food trucks and food stands have felt the crippling effect of the pandemic, and the SBA is rolling out a program called the Restaurant Revitalization Fund (RRF) that is aimed ... Read More
Best Practices: Lender’s Obligation to Pay Florida Documentary Stamp Tax
To be certain, Florida documentary stamp tax is a vast and complicated topic worthy of a book. In this article, however, I would like to direct your attention specifically to the lender’s obligation to pay this tax directly to the Florida Department of Revenue in certain circumstances and the method through which that payment is ... Read More
Best Practices: Lender Due Diligence Crucial to Identification of Covid-19-Related Financial Crimes
SBA’s Office of Inspector General (SBA-OIG) advises that financial institutions (FI) continue to serve an important role in uncovering and identifying thousands of fraudulent PPP (Paycheck Protection Program) loans and EIDL (Economic Injury Disaster Loans). FI serve as the “Receiving Depository Financial Institution (RDFI)” for PPP program funds from a third-party FI (the PPP lender), ... Read More
Best Practices: SBA Form 159 Submission Changes
The SBA recently announced changes to the submission procedure for SBA Form 159 Fee Disclosure Form and Compensation Agreement (“Form 159”). Lenders are required to submit Form 159 when a third party agent is paid by the SBA applicant or the SBA Lender in connection with an SBA loan application. There are no substantive changes ... Read More
Best Practices: The Importance of Certificates of Good Standing
Prior to the closing of an SBA loan, it is critical that lenders obtain appropriate documentation that the borrowing entity is in good standing. The best evidence to confirm active status and verify good standing is a Certificate of Good Standing (also sometimes known as Certificate of Existence) obtained through the Office of the Secretary ... Read More
Best Practices: Handling PPP Bankruptcies
As we near the first anniversary of the Paycheck Protection Program (“PPP”), it has become clear that this program was essential in helping millions of small businesses weather the storm of the COVID-19 pandemic. Unfortunately, it has also become clear that, despite the best efforts and intentions of Congress, the SBA, and the lending community, ... Read More
