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

The Small Business Administration (SBA) loan programs, particularly the 7(a) and 504 programs, are vital engines of economic growth.  For lenders, these government guaranteed programs offer significant opportunities but require absolute precision in documentation and compliance. Because these loans involve federal funds and specific statutory and regulatory rules, relying on general commercial counsel who are ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/12/e6d0d698-131a-4846-b7fe-86695b1b423c.mp3 As SBA loan program rules continue to evolve, one of the most valuable tools available to 7(a) lenders is the SBA Servicing and Liquidation Actions Lender Matrix. While SOP 50 10 and SOP 50 57 remain the primary sources of SBA loan program requirements, the Matrix provides a streamlined, easy-to-use reference that helps lenders ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/11/41fe3fb2-e605-4ea2-aef9-4dd18356bae8.mp3 Under 13 CFR §§ 120.140(j)(1) and 120.201 SBA-guaranteed loan proceeds may not be used to pay a creditor in a position to sustain a loss and the debt to be refinanced must be current for at least the last 12 months or for the life of the loan, whichever is less.  As defined on ... Read More

https://starfieldsmith.com/wp-content/uploads/2025/11/46ef03d4-a01f-4150-b7d4-0158243a6096-1.mp3 There is quite a bit of information for SBA lenders to keep track of at the moment.  As a reminder, the new SOP 50 57 4 (the “SOP”), which governs 7(a) Servicing and Liquidation, officially went into effect on November 1, 2025. Lenders should review the updated SOP to ensure they are familiar with ... Read More