Best Practices: Permanent 504 Refinancing Program
The long awaited 504 Debt Refinancing Program launched on June 24, 2016, after expiration of the comment period for the interim final rule published in the Federal Register on May 25, 2016. The interim final rule implements sections of the Consolidated Appropriations Act of 2016, which authorized SBA financed projects to include the refinancing of ... Read More
Best Practices: Dealing With Those Damned Discovery Subpoenas
It’s bad enough having to be subjected to the seemingly ridiculous discovery obligations when your company is involved in a lawsuit, but having to provide documents and/or testimony in lawsuits where you are not even a party is even more aggravating. Financial institutions are repositories for lots of sensitive and potentially embarrassing information regarding its ... Read More
Best Practices: Hit Send With Caution: Electronic Communications Can Modify a Written Contract and Lead to Results that Are Far from “Awesome!”
It has been decided that informal communications, such a instant message (“IM”), can modify a signed contract. A Florida Court, applying Delaware law, held that an IM effectively amended a written contract, which contained a provision that required all changes to be made both in writing and signed by the parties. The result: a judgment ... Read More
Best Practices: Navigating Through the SBA Export Express Loan Program
The SBA Export Express Program provides for a maximum loan or line of credit amount of $500,000.00 with a 90% guaranty for loans of $350,000 or less and 75% guaranty for loans greater than $350,000. Lenders must obtain a signed Export Express Supplemental Guaranty Agreement in order to engage in the Export Express Program. As ... Read More
Best Practices: Secondary Collateral Real Property – Title Search or Title Policy?
The Small Business Administration (the “SBA”) generally expects lenders to obtain a policy of title insurance for primary collateral real property where SBA loan proceeds are being used to purchase real property or refinance a loan secured by real property. However, the SBA has no set requirements for title insurance, and lenders may not be ... Read More
Best Practices: Clarification of 25% Contribution in a Partner Buyout
As stated in the SBA Standard Operating Procedures (SOP), if the purchase price of a business includes intangible assets in excess of $500,000, the borrower (or seller, in the form a two year seller standby note) must contribute at least 25% of the purchase price of the business for the application to be processed under ... Read More
