Banks routinely believe that if the SBA has issued its commitment for an SBA loan, then the closing is just like any other commercial loan closing. This is not true and most failures to collect on the SBA guaranty can be traced directly to errors made by the bank in closing the SBA loan. This course is designed to address the differences between a routine commercial loan closing and the requirements of SBA to properly close the loan and to retain the SBA loan guaranty.
Topics covered include:
• SBA’s loan closing is not the same as a commercial loan closing
• Required SBA lending forms
• Importance of following the SBA Terms & Conditions sheet
• Proper documentation of required equity injections
• Discussion of loan proceeds and documenting the loan disbursements
• Limitations on usage of SBA loan proceeds
• Issues with landlords and required concessions from the landlord
• How to handle changes in the terms of the loan
• Requirements regarding collateral
• Discussion of environmental requirements
• Required types of insurance
• Retention of all loan documentation in the event of default
Target Audience:
Anyone involved in the SBA lending process