Financing a business acquisition is an eligible use of SBA 7(a) loan proceeds, provided, that certain conditions are met. One of those conditions is that a seller is required to…
Before any lender may finance an SBA guaranteed loan, it must assure compliance with SBA’s “credit elsewhere test.” Compliance is a critical eligibility prerequisite. The test is foundational and one…
Prudent lenders recognize that equity injection must be verified and sourced whenever injection is required on an SBA loan. It is often helpful to think of equity injection as new…
Prudent SBA lenders should be familiar with estoppel certificates and the circumstances when an estoppel certificate may be required or used to obtain factual information it can rely on prior…
When financing improvements on leased land, it is important to consider the ways in which an SBA lender can adequately secure its loan. The purpose of this article is to…
In SBA Procedural Notice 5000-812316 effective July 15, 2021 (“Notice”), the Small Business Administration (“SBA”) sets forth a lender’s responsibilities for servicing and resolving unforgiven Paycheck Protection Program (“PPP”) loans,…