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 Attorney Spotlight |
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David W. Starfield
David is the co-founder and Managing Partner of Starfield & Smith, P.C., a law firm specializing in SBA and government guaranteed commercial lending, SBA regulatory issues and general business consulting. David has been actively involved in SBA lending and has been helping lenders to document, close, service and liquidate SBA loans for over 20 years. In his practice, David represents and assists numerous small businesses and hundreds of lenders that participate in SBA's lending programs. David's skill as an attorney is of the highest caliber. Martindale-Hubbell gives David its highest rating of "AV" for his legal skill and ethics. His peers have repeatedly voted him a "Super Lawyer" in Philadelphia magazine . David uses these skills on a daily basis to represent the interests of small businesses and the lenders that extend capital to the small business community.
In addition to his law practice, David devotes countless hours to the National Association of Government Guaranteed Lenders ("NAGGL") as a developer and instructor for several of NAGGL's most popular courses, as a member of NAGGL's Technical Issues Committee, as a regular contributor of articles and insights to NAGGL's monthly newsletter, as a member of the District III Liaison Committee and as a frequent lecturer and moderator of roundtable discussions on the latest SBA lending and regulatory issues. Additionally, David serves on NAGGL's Board of Directors, as one of two non-lender members of the Board, and has been honored for his contributions to the industry by being named NAGGL's Instructor of the Year and being asked to serve on NAGGL's Executive Committee.
David was very involved working directly with the U.S. Small Business Administration assisting with the re-write of the SOP 50-10, and is currently devoting time to assisting the Agency with the revisions to the SOP 50-51. David frequently travels to Washington, DC in his capacity as a NAGGL Board Member and as a small business owner, to assist the Agency and Congress in developing policies and proposals to advance the interests of SBA lenders and improve the delivery of financial assistance to small businesses.
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NEW PLP ELIGIBILITY CHECKLIST
By Ethan W. Smith |
In December, 2009, SBA released an updated PLP Eligibility Checklist which incorporates many of the new conditions reflected in the updated SOP 50 10 5(B). The lending community is, for the most part, unaware of this updated checklist as it has not yet been posted on the SBA website. However, Agency officials have indicated that lenders may begin using the updated checklist immediately for PLP loans. Notable revisions to the updated checklist are:
- Provisions added to certify guarantee percentages for Recovery Act loans;
- Language clarified regarding businesses located in foreign countries or owned by undocumented aliens as being ineligible;
- Clarified eligibility language for passive businesses, adding "hotels" to the existing list of businesses (motels, trailer parks, campgrounds, etc.) that must derive 50% or more of its income from short-term transients;
- Correcting the refinancing provisions to provide for 10% improvement to cash flow;
- Updating refinancing provisions to prohibit refinancing of seller take back financing less than 24 months old;
- Adding a requirement for a new business valuation when refinancing a seller note if the business valuation is more than 36 months old or does not meet SBA requirements;
- Updating the checklist for the new SOP provisions requiring a 25% equity injection when the purchase price of the business has more than $500,000.00 of intangible assets; and
- Revisions to the conflict of interest section of the checklist.
Use of the revised PLP Eligibility Checklist is not mandatory until SBA posts the document on its website and lenders may continue to use the May, 2009 version of the checklist until such time. However, it is advisable for lenders to use the updated version of the checklist as soon as possible since it reflects the current SBA regulations. Regardless of which version of the PLP Eligibility Checklist is used, lenders must comply with the current SOP 50 10 5(B) now. By using this checklist now, you can avoid potentially costly mistakes resulting from approving a loan that may otherwise be ineligible under the current SOP. A copy of the new PLP Eligibility Checklist is posted here. For more information on the updated PLP Eligibility Checklist or for other information regarding SBA lending issues, contact the author at esmith@starfieldsmith.com or 215-542-7070.
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All of us at Starfield & Smith would like to wish our friends a happy, healthy, and prosperous New Year!
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Seminars and Events |
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Closing and Funding the SBA Loan
Presented by: NAGGL
Date: March 8, 2010*
Location: Huntingdon Beach, CA
On March 8 and 9, 2010 at the NAGGL SBA Lender Training Event in Huntingdon Beach, CA, David Starfield will present the 2-day course, "Closing and Funding the SBA Loan." This program is of special interest for all those who prepare loan closing documentation and who coordinate key people and events in the loan closing meeting. Topics will include, SBA standardized loan authorization; SBA closing forms; SBA closing regulations; lender documentation; securing the lender; and much more.
Advanced SBA Loan Documentation and Closing
On March 10, 2010, at the NAGGL SBA Lender Training Event in Huntingdon Beach, CA, David Starfield will present the "Advanced SBA Loan Documentation and Closing" course. This session is designed to help lenders ensure that the documents they asemble comply with the SOPs, the loan authorization and sound lending practices. Topics will include key loan closing issues; tax, lien and judgment searches; third parties; loan modification issues; and more.
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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
Loan Documentation | Closing | SBA Guaranty Repurchase
Regulatory Compliance | Franchise Eligibility
Business Consulting
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© 2009 Starfield & Smith, P.C. All Rights Reserved | |
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