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Michele L. Courneya

Michele Courneya heads up Starfield & Smith's Minneapolis, Minnesota branch office. She practices in the areas of banking, contracts, real estate and commercial law with an emphasis on SBA lending.

Michele is the former Minnesota District Counsel, Senior Franchise Counsel, Chair of the Authorization Committee and Chair of the Streamlining 504 Closing Committee for the U. S. Small Business Administration. During her 15 years with the SBA, Michele was instrumental in writing, editing, updating and automating the SBA's loan authorizations, the Agency's primary contracts with lenders. She developed and implemented internal control systems at the SBA to streamline program procedures and drafted and edited rules and regulations implementing new agency policies. In addition, she oversaw agency websites on franchises and advised on franchise eligibility issues. As a nationally recognized expert, Michele has extensive background assisting the lending community on legal issues related to all SBA programs including regulatory compliance, ethical issues, eligibility, and loan processing, closing, liquidation and litigation. Since joining the firm, she has assisted with the revisions to the SOP 50-10(5) and the new liquidation regulations.

Michele has taught seminars on loan closing, documentation, franchising and other legal issues related to SBA lending for the National Association of Development Companies (NADCO) and the National Association of Government Guaranteed Lenders (NAGGL), who named Ms. Courneya "Instructor of the Year" for 2008. She is a member of NAGGL and an affiliate member of NADCO and is qualified as a designated closing attorney under the SBA 504 Program.
 
FeaturedArticleRECOVERY ACT LOANS -- TIME IS RUNNING OUT!
By Ethan W. Smith

 Ethan Smith  
        On November 16, 2009, the SBA released Procedural Notice 5000-1131 which describes the "Transition Period for Initiatives under Sections 501 and 502 of the Recovery Act." Simply put, the money earmarked for the stimulus is running out and the SBA is coordinating how the remaining stimulus dollars will be allocated among the remaining Recovery Act applications still pending.

        According to the notice, beginning November 23, 2009, all Recovery Act loans submitted (and all previously submitted, but un-approved Recovery Act loans) will be placed in a queue (the "SBA Recovery Loan Queue", or "RLQ"). These applications will be funded on a first-come, first-served basis with remaining Recovery Act funds and with any additional funds which become available through the cancellation of previously approved Recovery Act loans. Some key dates to keep in mind:

  • November 18-20, 2009: normal Recovery Act processing
  • November 23, 2009: all Recovery Act Loans will be placed in the RLQ
  • January 8, 2010: Last day for non-Etran submissions for RLQ
  • January 14, 2010: Last day for Etran submissions for RLQ
  • January 15, 2010: last day new applications will be placed in the RLQ
  • February 15, 2010: all pending Recovery Act loans in the RLQ will be withdrawn by SBA
        According to SBA officials, there are likely sufficient Recovery Act funds to last through the end of November, 2009. However, it is critical to keep in mind that once a loan is placed in the RLQ, there is no guarantee that there will be Recovery Act funds available for loans once they are placed in the RLQ. Therefore, it is in lenders' best interests to get their complete applications in as soon as possible. Moreover, savvy lenders need to manage borrower expectations now and add guarantee fee obligations back into their commitment letters.

        Lenders who want to monitor the status of any loan applications that are in the RLQ can do so here. Additionally, the National Association of Government Guaranteed Lenders ("NAGGL") has released a helpful flowchart that illustrates the RLQ process.

        For more information on this and other SBA related topics, contact the author at [email protected], or 215-542-7070.
 
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SeminarsSeminars and Events
 
SBA Franchise Eligibility Issues and Preserving the SBA Loan Guaranty: Guaranty Purchase Issues 

Presented by David Starfield
Date: December 4, 2009
Location: Exton, PA

This event, sponsored by the South Eastern Economic Development Company (SEEDCO), will include a dicussion on the basics of franchising and franchise issues including SBA eligibility considerations and preserving the SBA loan guarantee.

To register for this event, click here.

NAGGL Webinar:
Ask the Lawyers--Avoid Closing & Documentation Pitfalls

When: December 8, 2009
Time: Noon-1:30 pm CST
Fee: $245 for Members, $395 Non-Members, $145 Govt
Starfield & Smith Instructor: David Starfield

David Starfield provides expert guidance and practical tips on how to avoid common pitfalls when closing and documenting SBA loans.
  • Insurance (Hazard, Life, Title)Equity Injection and Allocation of Proceeds
  • Landlord Waivers
  • Franchises and Jobber Agreements
  • Overcoming an SBA Recommended Repair or Denial
Download a registration form here.
Register online by clicking here.

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ContactInfo Starfield & Smith, P.C.
Pennsylvania Office
501 Office Center Drive,
Suite 350 | Ft. Washington, PA 19034
phone: (215) 542-7070 | fax: (215) 542-0723
 
Minnesota Office
1516 West Lake Street, Suite 303 | Minneapolis, MN 55408
phone: (612) 208-0877 | fax: (215) 542-0723

http://www.starfieldsmith.com
 
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