The Pennsylvania-based law firm Starfield & Smith does a lot of SBA loan closings around the country. They share their knowledge and experience in articles posted on their website. In this post I describe a few of the articles on loan topics to give you a flavor of what’s available. But you should check out the Starfield archives.
Best Practices: Technical Corrections to SOP 50 10 5(F). This piece is representative of Starfield’s articles that keep readers abreast of developments in SBA loan rules. The article highlights important changes and contains a link to the updated SOP.
Best Practices: Indemnification Clauses in Purchase Agreements. The purchase agreement’s indemnification provisions are an important protection for the buyer, which, in business acquisition financing, is also the lender’s borrower. Indemnification provisions protect the buyer against third-party claims that arise before closing, breach of the seller’s warranties, liability for the seller’s unpaid taxes, and other harm the buyer might suffer as a result of issues arising from the deal.
Best Practices: Tax Lien and Judgment Searches. As I discuss in Why You Should Do Lien Searches Before You Buy a Business, liens on the seller’s assets can be a big problem for a buyer if they aren’t taken care of before closing. In this case, what you don’t know can certainly hurt you. Starfield’s article discusses how to conduct the searches and what to do if a lien search uncovers problems.
Best Practices: Workout of an SBA Loan. This article discusses the SBA requirement that lenders attempt to negotiate a workout on SBA loans that are in default. It also discusses the process of negotiating a workout. Not only does the post contain advice for lenders on how to pursue a workout, it provides borrowers insight on how the workout process works.
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