Articles

Pursuant to SBA Information Notice 5000-17007, effective October 12, 2017, SBA has issued a revised Form 1919. As mentioned previously, the form has been divided in order to provide greater clarity to the questions and make the form more user friendly for borrowers. Section I of the form relates specifically to the applicant business and ... Read More

SBA 7(a) loans in an amount greater than $350,000 and which are extended to refinance existing debt “must be secured with at least the same collateral and lien priority as the debt that is being refinanced.” SOP 50 10 5 (J) at pg 187. In order to determine what collateral and lien position is needed ... Read More

SBA 7a loan proceeds may be used by a borrower to make improvements to a leased premises where it operates its business. Many times, a borrower will negotiate a tenant improvement allowance into the lease terms. A tenant improvement allowance is an amount of money the landlord is willing to contribute towards the improvements to ... Read More

Newly promulgated regulatory changes to the Eligible Passive Rule (“EPC/OC Rule”) took effect on September 20, 2017. Among them was a rather simple and welcomed change, allowing the use of proceeds to finance a change of ownership between the existing owners of the EPC. The new SOP 50 10 (J), slated to become effective on ... Read More

In making SBA loans, both the SBA and the lenders require that adequate collateral be provided by the borrower to secure the loan.  Security interests are obtained in the borrower’s property.  Additionally, a majority of SBA loans are also secured by guarantees by persons who are not parties to the loan, mostly individuals who have ... Read More