SBA Lending: Documenting, Closing, and Servicing 7(a) and CDC/504 Financing
Navigating SBA Approval and Authorization Process and Best Closing Practices for Preserving the Guaranty
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Banking and Finance
- event Date
Thursday, September 23, 2021
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will provide banking and finance counsel with the knowledge to properly document and close SBA loans. The program will cover the terms and conditions of a Section 7(a) loan and the CDC/504 acquisition/equipment financing mortgage loans. The program will discuss recent changes and developments that impact loan closings with the promulgation of SOP 50 10 6.
Mr. Hofstetter Co-Chairs the firm’s Banking and Finance Practice Group and is also a member of both the Commercial Restructuring and Workouts and Corporate and Business Law Practice Groups. He began his career as a staff attorney at the SEC, served as a Counsel/Section Chief for the FDIC, and was General Counsel of a community bank. Mr. Hofstetter's primary industry focus is his work as a transactional corporate attorney representing institutional lenders, entities, and individuals in commercial and loan transactions and regulatory matters. Financial institutions and borrowers rely on his substantial counseling experience in all aspects of lending with emphasis on government guaranteed loans, including US Small Business Administration (SBA) and US Department of Agriculture (USDA) finance transactions. He regularly assists financial institutions and borrowers with the structuring of institutional loans, compliance with financing regulations and procedures, loan closings and workouts.
Mr. Fleitas has over 15 years of legal experience in business transactions, real estate law and finance. His representative clients include real estate developers, financial institutions, REITs, private equity and opportunity fund investors, multinational corporations, local businesses and high net worth individuals. Mr. Fleitas' extensive transactional practice includes: complex real estate transactions, mezzanine financing, joint venture investments, structuring of partnerships and limited liability companies, commercial lending/real estate finance transactions, asset based lending, syndications, co-lending arrangements, special asset restructuring, disposition of distressed real estate assets, as well as troubled loan workouts. Mr. Fleitas has extensive experience in closing Small Business Administration (SBA) Loans, specifically SBA 504 and 7(a) loans. He has written on numerous real estate topics and is one of a select few Florida attorneys that are Board Certified in Real Estate Law.
While banks, credit unions, and fintechs are tripping over themselves to extend credit availability for businesses, the SBA has recognized the advances that technology has provided to the industry. The SBA has streamlined its loan programs to create more access and opportunity for both lenders and borrowers. To incentivize banks to do more small business loans, the SBA does not require banks to analyze cash flow or debt-service coverage on loans of $350,000 or less. Other recent rule changes have expanded the accessibility of loan programs and simplified the loan application process.
The SBA has succeeded in increasing the number of loans made and the number of banks participating in its loan programs. While the loan guarantees by SBA are attractive to banks, the SBA loan process remains complicated and full of pitfalls for lenders.
Listen as our authoritative panel discusses the SBA financing program and best practices for lenders to document, close, and service SBA loans. The panel will guide you through the SBA authorization and approval process and discuss recent changes and developments that impact loan closings.
- SBA loan programs
- 7(a) loans
- CDC/504 loans
- SOP 50 10 6 updates
- Approval and authorization process
- Closing and documenting the loan
- Servicing the loan
- Loan defaults and securing the guaranty
The panel will review these and other priority issues:
- What are best practices for lenders to navigate the SBA loan authorization and approval process?
- What pitfalls do lenders face in documenting a 7(a) loan to preserve the federal guaranty?
- What are best practices for post-closing loan servicing?
- What are the recent changes by SBA to streamline the loan approval process?
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