SBA Lending Attorneys Give Update on the "Musts" and "Shoulds" of the New SBA SOP
"There are two words to remember about this new SBA SOP" said Arnie Spevack. "must and should. 'Must' means policy and means that unless you get prior approval from the SBA you cannot deviate from that requirement, and 'should' means that if you don't comply with the suggestions, you probably will run into problems." Arnie and Alison Rind gave an update to SBA lenders on the Small Business Administration's new SOP 50 57 7(a) on loan servicing and liquidation.
The seminar addresses what lenders need to know to know to document and close SBA loans under the new SOP, including:
- Revisions to servicing, including seasoned loans and environmental risk mitigation
- Liquidation revisions such as protective bids and mandatory liquidation thresholds
- Feasibility tests
- CPC expense reimbursements
Alison Rind and Arnie Spevack are commercial lending attorneys at Lerch, Early & Brewer in Bethesda, Maryland who represent commercial lenders in loan transactions and other commercial matters. These include participants in SBA and other government-guaranteed lending programs.