July 14, 2011
SBA lending attorneys Arnie Spevack and Alison Rind of Lerch, Early & Brewer recently spoke about best practices for submitting quality guaranty purchase packages at Coleman Publishing's webinar "Preparing the 10-Tab Guaranty Purchase Package."
They gave two "absolutes" you must follow when preparing a guaranty purchase package:
Be prepared for a repurchase during loan closing.
This means documenting everything properly, having collateral that you can collect, and ensuring a smooth repurchase process through due diligence in documentation.
The SBA 7(a) Loan program is not designed to make a bad loan good.
When making an SBA loan,consider, "Would I make this loan if it weren't backed by the SBA guarantee?"
For a brief portion of the program, see SBA Lending: Preparing the 10-Tab Guaranty Purchase Package.
This content is for your information only and is not intended to constitute legal advice. Please consult your attorney before acting on any information contained here.
