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 […]
The Closing of an SBA 504 Loan (Part 1)
Congratulations! The Lender and the Certified Development Corporation (“CDC”) have approved your SBA 504 Loan! With the assistance of the Lender and the CDC, you have navigated your way through the application process, answered many questions, provided all of the required documentation, and you have now received an approval for your 504 loan. So…what’s next? […]
Closings in the Age of COVID-19…and Beyond: Meet RON.
The COVID-19 pandemic is speeding up the revolution in how real estate and loan closings are conducted. Even before social distancing and shelter-in-place became common words in our vocabulary, the federal government and many states recognized the public’s need and desire for electronic signatures in lieu of wet signatures and face-to-face meetings and enacted legislation […]
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 […]
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 […]
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 […]
