Lenders are responsible for servicing and liquidating all of the 7(a) loans in their portfolio. CDC’s are responsible for servicing 504 loans in their portfolio, but they will only be responsible for liquidating the loan based on its designation. Lenders and CDC’s must be cognizant about their responsibilities and authority […]
Lenders should be cognizant about what expenses are classified by the SBA as recoverable or non-recoverable. The SBA does not pay for non-recoverable expenses, such as any fee or cost incurred that was not necessary, reasonable or customary. In addition, the SBA does not pay for legal expenses for non-routine […]
Lenders, including 7(a) lenders and Certified Development Companies (“CDC”), must be proactive in recognizing when a loan should be classified in liquidation status, and understand the necessary steps in the liquidation process. Lenders who act promptly and follow the necessary steps in the liquidation process will maximize collateral recovery, limit […]
504 Loan Liquidation Actions This article is Part II of a two-part blog series, designed to assist 7(a) lenders and Certified Development Companies in determining which liquidation actions require SBA’s pre-approval on SBA loans. Part II in this blog series addresses the liquidation actions that require the SBA’s pre-approval for […]
7(a) Loan Liquidation Actions This article is Part I of a two-part blog series, designed to assist 7(a) lenders and Certified Development Companies in determining which liquidation actions require SBA’s pre-approval on SBA loans. Part I in this blog series addresses the liquidation actions that require the SBA’s pre-approval for […]
The efforts to curb the spread of COVID-19 has caused an adverse ripple effect in the economy that will undoubtedly strain lending relationships and require widespread loan modifications. To assist borrowers and businesses with the anticipated volume of loan modification requests, the federal government and other federal agencies have offered […]
When the government takes property from a land owner under eminent domain, it is given that the government must pay the owner for the value of the property taken. However, tenants and leaseholders of property are often unsure as to their rights to compensation. The reality is that owners of […]
Under Florida law, there are maximum interest rates that lenders may charge. Any loan with interest in excess of the specified limit is subject to either civil or criminal usury, which means that the lender may have to pay significant penalties or forfeit the right to collect on the loan. […]
In many cases, property owners become aware that eminent domain proceedings will affect their property, but owners are often surprised to learn how long the process takes. Major government projects can take years of budgeting, engineering, and planning before the first parcel is ever taken by eminent domain. Early in […]
While bankruptcy proceedings generally allow individuals an opportunity to discharge many different liabilities, there are some classes of liabilities—such as those involving fraud—that are not dischargeable in bankruptcy. The Bankruptcy Code (“Code”) prohibits the discharge of “any debt . . . for money, property, [or] services . . . to the extent obtained by . . . false pretenses, a false representation, […]