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SpotlightAttorney Spotlight 
Chris
Christopher M. Evans
 
We are pleased to welcome Christopher M. Evans to Starfield & Smith, P.C.
 
Chris' areas of practice include commercial lending, finance, real estate and corporate law. As a closing attorney for commercial lenders, he drafts, analyzes, and negotiates documents for conventional loans and government guaranteed loans through the SBA 7(a) and 504 loan programs. Chris also reviews SBA guaranteed and conventional loan files and advises on due diligence documentation.

Chris counsels small businesses in several contexts, including mergers and acquisitions, entity formation, corporate governance, and real estate matters. He has drafted and reviewed purchase agreements, organizational documents, corporate resolutions and minutes, and advises on regulatory and licensing matters at both the state and federal levels.
  
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FeaturedArticleUSDA B&I LOAN PROGRAM
UNDER ARRA

By Annie C. Johnson

Annie Web Photo

The USDA's Business & Industry (B&I) loan program is designed to improve business, industry, employment and the overall economic and environmental climate in rural communities. In an effort to ease the credit crunch on "Main Street", the American Recovery and Reinvestment Act (ARRA) aims to boost the existing B&I program to encourage lenders to participate.


ARRA provides for several B&I program enhancements, which are available through September 30, 2010:

 

  • $1.7 billion of new rural business lending can be guaranteed in addition to the 2010 budget amount.
  • B&I-ARRA funding will be approved as requested from a central pool at the National Office to avoid potentially inadequate state allocations of the funds.
  • The B&I guarantee fee is reduced from 2% to 1%.
  • The annual renewal fee of ¼% is eliminated.
  • 90% guarantees are available on "high priority loans" (scoring 55 points or more) up to $10 million

In addition to these benefits, B&I-ARRA funding brings additional requirements:

 

  • Buy American:  Projects for the construction, alteration, maintenance or repair of a public building or public work must use American iron, steel and manufactured goods.
  • Any vehicles financed must be manufactured in the U.S.
  • Davis Bacon Act:  For loans in which more than $2,000 will be spent for construction, alteration or repair, laborers and mechanics must be paid prevailing wages in accordance with the Davis Bacon Act.
  • Ineligible Projects:
    • Zoos
    • Aquariums
    • Convenience stores (unless creating "quality jobs" and sells E85 fuel)
    • Pools
    • Water parks
    • Hotels/motels with pools/water parks
    • Golf courses
    • Museums
    • Casinos or other gambling establishments

Aside from these restrictions, the program works just like the original B&I guaranteed loan program.Furthermore, any project that complies with B&I standards but does not meet the additional ARRA requirements may still be approved as a regular B&I loan at the state level.

 

For more information on this and other B&I related topics, contact the author at [email protected] or (215) 542-7070.

 
DYKDid you know...
 
Compass
 ...that Starfield and Smith, P.C. represents lenders nation-wide on USDA B&I loans? 
 
For more information on this and the other services Starfield and Smith, P.C. provides to its lender clients, please contact Annie Johnson at (215) 542-7070 or email Annie at [email protected].

 
SeminarSeminars and Events
  
Fundamentals of SBA Lending: Documenting, Closing and Funding the SBA Loan

Presented by: Lorman
Date: March 4, 2010 from 1:00 pm EST - 2:30 pm EST
Location: Webinar
 
SBA lending affords banks and other lending institutions with the opportunity to finance commercial loans to small businesses and, at the same time, secure a 50 to 90 percent loan guarantee from the federal government. While the program can be quite profitable, it's not without its risks. Compliance with SBA regulations is mandatory to ensure success and profitability. With seismic changes occurring to the program over the last several months, it is critical to understand the new regulations and the way to make the SBA loan programs work for you.

Register online by clicking here or call 866-352-9539
Discount code: Z7745121
Priority code: 15000
 
Closing and Funding the SBA Loan

Presented by: NAGGL
Instructor: David W. Starfield
Date: March 8 - 9, 2010
Location: Huntington 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.
 
To register online, click here.

Advanced SBA Loan Documentation and Closing

Presented by: NAGGL
Instructor: David W. Starfield
Date: March 10, 2010
Location: Huntington Beach, CA

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.
 
To register online, click 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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