The Lender's Advantage Newsletter - October 2012

District Director, Calvin Davis', Interview with Fox 34 News - Lubbock

In a September 26, 2012 Fox 34 News interview with Brittany Price titled, "Money Matters: Funding a Small Business", West Texas District Office District Director, Calvin Davis, provided helpful tips about what it takes to start a small business.  Click here to read the interview in its entirety.

Lender Relations Hot Topics

Rates

Effective September 21, 2012, The Office of Financial Assistance announced the 1st Quarter "Peg" Rate and Direct Interest Rate.  For specific rates, you may view notice here.

Current Lender Activity Report

The September 2012 Lender Activity Report is now available.  Click here to review the report.

West Texas District Office Most Active SBA 7(a) and 504 Lenders

Do you want to find out which lenders are making the most SBA Loans in this District?   Click here for detailed information on which banks and certified development companies are the most active participants in the SBA Loan Programs.

SBA Small Loan Advantage Program - Revised & Expanded to All SBA Lenders

SBA Information Notice 5000-1240, effective May 25, 2012, revised and expanded the Small Loan Advantage (SLA) program.  The changes in the program have been incorporated into Standard Operating Procedures (SOP) 50 10 5(E).   As of June 1, 2012, the SLA application process will include credit scoring, of each application, prior to loan approval.  Additionally, the SLA program is now available to all SBA participating lenders (for small loans).

The key features of the revised and expanded SLA are as follows:

• An increase in the maximum loan size from $250,000 to $350,000;
• Expansion to all SBA participating lenders;
• All SLA loan applications will be credit-scored by SBA prior to loan approval;
• Change in forms from the S/RLA forms (SBA Form 2301 Parts A, B and C) and the Preferred Lender Program (PLP) Eligibility Checklist (SBA Form 7) to the forms used in the SBA Express and Pilot Loan Programs (SBA Forms 1919 and 1920 Parts B and C);
• All SLA loan applications will continue to be submitted electronically;
• Lenders will continue to have the option of using their own notes and guaranty forms, rather than SBA Forms 147, 148 and 148L;
• In closing and disbursing SLA loans, lenders will follow the same closing and disbursement procedures and documentation as it uses for its similarly-sized non-SBA guaranteed commercial loans; and
• Revolving lines of credit continue to be prohibited under SLA.

Click here to view the Notice.

SBA 504 Third Party Lender Agreement 

As SBA Lender Relations Specialists, we are sometimes asked by SBA 504 Third Party Lenders about their responsibilities in the event of a borrower's default.  SBA Form 2287 - Third Party Lender Agreement outlines the responsibilities of the SBA 504 Third Party Lender.  In the Terms and conditions of the Agreement, Number 7 requires the Third Party Lender, in the event of default under the Third Party Loan or Third Party Lien, to give the Certified Development Company (CDC) and the SBA written notice, of such default within 30 days of the event of default and at least 60 days prior to Third Party Lender’s foreclosure upon the Common Collateral.  The Third Party Lender must reference the loan number for the 504 loan in its notification letter. There is no approved template or prescribed form for the 60 day default letter.  The letter should include the intentions of the Third Party Lender regarding foreclosure, etc.  The 60 day letter should state that the letter being used ‘serves as the 60 day notice as required by the Third Party Lender Agreement (SBA Form 2287)’ or similar language. Click here to view the SBA 504 Third Party Lender Agreement.  For more information, please contact Roger Henderson, Lender Relations Specialist/Brand Manager at 806-472-7462 ext. 107 or by email at roger.henderson@sba.gov.

SBA Women's Lender Forum – Amarillo – Thursday, November 15, 2012

The 1st annual Amarillo Women’s Lender Forum will be held on Thursday, November 15, 2012 from 9:00 A.M. to 3:30 P.M., at the West Texas A&M Enterprise Center in Amarillo.  The SBA West Texas District Office will be in attendance and its Lender Relations Specialists will provide the latest updates on the SBA loan programs and services.  Lenders may register by contacting Gina Woodward, West Texas A&M Small Business Development Center, at 806-372-5151 or by email at gwoodward@mail.wtamu.edu.

Training Needs

For an update on the new SOP 50 10 5 (E) and loan program changes, i.e., Small Loan Advantage and CAPLines Loan programs, please contact any of the following individuals: Armando Garcia, Lead Lender Relations Specialist at 806-472-7462 ext. 104/armando.garcia@sba.gov ; Roger Henderson at 806-472-7462 ext. 107/ roger.henderson@sba.gov or Derenda Fisher at 806-472-7462 ext. 123/derenda.fisher@sba.gov.

SBA Opportunities Workshop

The Texas Tech University Small Business Development Center (SBDC) in Lubbock will host the SBA Opportunities Workshop on Wednesday, October 31, 2012 from 6 P.M. to 8 P.M.  The SBDC's address is 2579 S. Loop 289 in Lubbock.  Small business owners will have the opportunity to learn more about the SBA loan programs and to learn about the services provided by the Small Business Development Center.  Be sure to register for this event, please contact Elaine Melot at 806-745-1637 or by email at e.melot@ttusbdc.org.

 

 

 




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