Best Practices: How Community Advantage Pilot Lenders Can Become Community Advantage Small Business Lending Companies
The Final Rule: Small Business Lending Company (SBLC) Moratorium Recission and Removal of the Requirement for a Loan Authorization (88 FR 21890, commonly known as the “SBLC Rule”) becomes effective on May 12, 2023. The purpose of the SBLC Rule is to: (1) lift the moratorium on licensing new Small Business Lending Companies (“SBLCs”) and ... Read More
Best Practices: Who Must Guarantee an SBA Loan?
Generally speaking, every SBA 7(a) loan must be guaranteed by at least one individual or entity. The SBA has set out different criteria and requirements for different types of guarantors. SBA Form 148 (Unconditional Guarantee) and SBA Form 148L (Limited Guarantee) are the standard documents for providing a guaranty on an SBA loan. The SBA ... Read More
Best Practices: SBA’s Final Affiliation Rule and Franchise Lending
The new SBA final rule “Affiliation and Lending Criteria for the SBA Business Loan Programs” (the “Rule”) is set to change the landscape of SBA franchise lending. Effective on May 11, 2023, the Rule will remove affiliation based on management and control, franchise or license agreements, and identity of interest for most of SBA’s loan ... Read More
Best Practices: Changes to Information Collection and Reporting Requirements for Lenders
On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued a final rule, amending Regulation B, implementing changes to the Equal Credit Opportunity Act (ECOA) made by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The rule change extends the collection and reporting of demographic information not only ... Read More
Best Practices: Two Major New SBA Rules Take Effect in Mid-May
This week SBA has published two new final rules that are scheduled to take effect in Mid-May, 2023. The final rule “Affiliation and Lending Criteria for the SBA Business Loan Programs” was published in the Federal Register on April 10, 2023 and takes effect on May 11, 2023 (RIN 3245-AH87) (the “Affiliation Rule”); and the ... Read More
Best Practices: Commercial Condominium Purchases
When financing a commercial condominium purchase, lenders should carefully review all condominium documents and title documents and obtain all necessary title endorsements and insurance. Pertinent condominium documents may include the current deed, the declaration of condominium, the condominium bylaws and all related amendments and documents of record. Some condominium documents contain provisions regarding rights of ... Read More