Articles

In response to the COVID-19 pandemic, the Small Business Administration (“SBA”) granted low-interest, long term Economic Injury Disaster Loans (“EIDL”) to millions of small businesses. While the pandemic no longer dominates news headlines and the EIDL program no longer issues new financing, 7(a) Lenders are often required to address these existing EIDL loans when lending ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/02/dda41455-5d3a-4798-8186-41a6ce7f4b35.mp3 SBA’s guidance on real estate appraisals depends on the type, size and use of the SBA loan proceeds.  This article focuses specifically on the basic commercial real estate appraisal requirements for Standard SBA 7(a) loans (meaning loans of more than $500,000) that are secured by commercial real estate.  These requirements are set forth in ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/02/cacd7fe2-c4b7-425e-8f2a-1ce5cace2542.mp3 After loan disbursement, SBA lenders are often asked by borrowers to subordinate the position of a lien securing an SBA loan.  Lenders must consider these subordination requests in the context of Prudent Servicing actions as set forth in SBA’s Servicing and Liquidation SOP 50 57 3 (the “SOP”).  Generally, the borrower must demonstrate satisfactory ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/02/e8312a16-a27e-4848-9218-0d918852c9a2.mp3 Although there is no extensive discussion in the SBA’s Standard Operating Procedure 50 10 7.1 (SOP) regarding borrower’s compliance with business license requirements, the SOP does make it clear that the lender must obtain evidence from the borrower of all licenses required to operate the business within 90 days after final disbursement of the ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/01/9123263d-4c7f-4d09-99c5-05b60c0a3149.mp3 What is the Beneficial Ownership Information (“BOI”) Reporting Rule? The Financial Crimes Enforcement Network (“FinCEN”) recently implemented significant changes in beneficial ownership reporting, for the purpose of combating financial crimes. These regulations aim to enhance transparency by requiring companies to disclose the identities of their beneficial owners, defined as individuals who (i) directly or ... Read More

https://starfieldsmith.com/wp-content/uploads/2024/01/e08ef048-750a-48ca-8ee4-1e5aab481178.mp3 Once a loan is purchased off the secondary market by SBA, lenders must proceed with liquidation before they can request a loan to be charged off. When liquidation is complete, the wrap up report and charge off tabs must be submitted to SBA. Lenders should be sure to keep current on SBA’s guidance to ... Read More