The Closing of an SBA 504 Loan (Part 2)
The July 2020 version of THE FOCUS, The Closing of an SBA 504 Loan (Part 1), covered some very important elements and considerations regarding how to prepare for and close an SBA 504 loan. That article discussed several of the most important parts of the pre-closing and closing process concerning the Term Loan and the […]
Congratulations, you just received your PPP Loan! Now what?
Well, first you need to start using those PPP loan funds for the purposes they are intended and permitted under the CARES Act (“Act”), Pub. L. 116-136. According to the Act, PPP loan proceeds are to be used for only the following purposes: payroll costs; interest payment on any mortgage incurred prior to February 15; […]
SOP 50 10 5 (J) – Updated Equity Injection Requirements
Announced on October 16, 2017, and effective January 1, 2018, the Small Business Administration (“SBA”) has issued a newly amended Standard Operating Procedure (“SOP”), known as 50 10 5 (J), which includes substantive changes to the SBA’s equity injection requirements for applicants financing start-up businesses and/or changes of ownership. Specifically, SOP 50-10 5(J) provides (see Page […]
SBA’s Change of Ownership Requirements
The SBA provides very specific Change of Ownership Requirements, which can be found in revised SOP 50 10 5(J), effective January 1, 2018. The SBA’s policy recognizes that frequently it is an individual, not a business, that purchases an existing business. Under the new policy, SBA permits a change of ownership transaction to be structured […]
Business Acquisition Considerations
Buying a business often involves the simultaneous closing of three separate but closely related transactions: (1) the purchase of the business, (2) the financing of the acquisition, and (3) the business management and ownership agreement among the co-owners/co-purchasers. While many entrepreneurs know how to operate a business, many also need assistance in handling any or […]
How to Structure SBA 7(a) and 504 Loan Short Sales
Please click on the link below to view the Powerpoint presentation prepared by Mitchell C. Fogel for a recent Webinar he did with Coleman Publishing that presented How to Structure SBA 7(a) and 504 Loan Short Sales. Regarding commercial short sales, this Webinar provided information on the short sale process in general, addressed specific issues […]
5 Tips to Accelerate the Liquidation of the 1st Loan in an SBA 504 Loan
Please click on the link below to view the Powerpoint presentation prepared by Mitchell C. Fogel for a recent Webinar he did with Coleman Publishing that presented 5 Tips to Accelerate the Liquidation of the 1st Loan in an SBA 504 Loan. This Webinar provided tips and suggestions on how the Third Party Lender, a […]
Due Diligence Tips for SBA Lenders: 504 Loans
Due diligence requirements and efforts on SBA 504 loans are similar to those used when financing SBA 7(a) and non-SBA commercial loans. For example, prior to the closing, among other matters, the Lender must ensure that all required insurance is in place; the borrowing and, if applicable, guarantying entities are all properly organized; and that […]
The Top Ten Things a Lender’s Counsel Thinks About Regarding a Commercial Real Estate Transaction
(or Insights for the Broker in Getting the Deal Closed) In today’s competitive environment, having information and knowledge may often mean having a tremendous advantage over the competition, the difference in closing a transaction quickly, or even closing it at all. If the idea is to be as prepared as one can, thus making the […]
Recent Changes in the SBA 504 Debt Refinance Program
On October 12, 2011, the SBA published its final regulations for the 504 temporary debt refinancing program. These final regulations incorporate a number of very important modifications. Those involved in the industry believe that these changes will make the program much more accessible for small businesses and also more attractive for participating lenders. The major […]
