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Camilla N. Andrews
Camilla N. Andrews, Esq.
Camilla N. Andrews is the Managing Partner of Starfield & Smith's California office. She has been practicing law for over twenty years, specializing in representing SBA lenders and financial institutions. Her areas of expertise range from transactional to litigation matters and she is an expert on issues unique to SBA lending, creditors' rights, receiverships, judicial and non-judicial foreclosures, personal and real property collateral, real estate issues, prejudgment remedies, guarantor issues, contract disputes, general business law and loan workouts. Camilla has been recognized by her peers for her outstanding legal skills and the highest legal ethics, attaining Martindale-Hubbell's highest "AV - Preeminent" rating. Camilla recently finished her tenure as Counsel for the FDIC at its West Coast Temporary Satellite Office where her responsibilities included overseeing SBA loans for the Western states.

Over the years Camilla has represented numerous SBA and commercial lenders, including large national banks and non-bank lenders, as well as small and regional community banks. Through her extensive work in SBA guaranteed lending, Camilla has developed a reputation for responding promptly to her clients' needs in a manner which is cost-effective without compromising quality. This reputation arises from her focus on building relationships with her clients to achieve the mutual goal of prompt, responsive service. By specializing in issues unique to the SBA lending community and using state-of-the-art technology which maximizes productivity, Camilla is able to respond quickly and efficiently to her clients' legal needs. 

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Best Practices: A Race to the Debenture: Mechanics of an SBA 504 Loan Transaction

  

 By: Jennifer E. Borra  

 

  
Jenn
Jennifer E. Borra, Esquire

The SBA 504 loan program offers an attractive option to borrowers looking for affordable long-term financing for their fixed assets. However, due diligence demands and the extended period of time from loan application to debenture funding can be onerous for the borrower.    

 

The following are several practice pointers for third party and interim lenders to facilitate processing of the 504 loan by the certified development company (CDC) that will, in turn, result in a shorter time frame for debenture funding.

 

1.     Discuss the process with the borrower early. Explain the due diligence requirements and make sure that the borrower understands that each lender may provide a needs list with differing items - satisfying the conditions for one lender in the transaction may not satisfy the requirements of all lenders. For example, when construction is involved, the permanent and interim lender may collect items for the pending construction, while the CDC will request items related to the post-construction period.

 

2.     Initiate early discussions with the CDC, and keep the CDC in the loop while processing and documenting your loan. Be clear with the CDC regarding the loan purpose, the borrowing structure, the guarantors, the collateral and any changes relating to these items prior to your loan closing.

 

3.     Provide the CDC with a closing binder containing all due diligence items that you collected, as well as closing statements with copies of all disbursement checks. By providing the CDC with organized and clear copies of the due diligence items you have collected, you will shorten the CDC's processing time and reduce the burden on the borrower to repeat its due diligence efforts.

 

4.     Furnish to the CDC all contact information for title companies, insurance agents and similar third parties to expedite the CDC's collection of needs list items. As is true with Number 3 above, ensuring that the CDC is equipped with all the information you collected alleviates the burden on the borrower of duplicating its efforts.

 

5.     Be flexible. The CDC must obtain the SBA's approval of any changes to the debenture amount or loan structure, which is why it is important to keep the CDC apprised of any reductions/increases in loan amounts, changes to the use of proceeds (especially important with equipment financing), and changes to ownership structure. Keep in mind that he SBA requires backup documentation to support any requested changes to the Loan Authorization.

 

6.     In the case of construction, be sure to provide the CDC with updates on the progress and alert the CDC to any adverse changes in the borrower's financial condition or otherwise.

 

As a third party lender or interim lender, being proactive and efficient is the key to lowering costs to the borrower and shortening the timeframe to receipt of the debenture proceeds. Communication is vital in assisting all parties, but will ultimately benefit the borrower in obtaining the best financing.

 

For more information on closing and funding a 504 loan, please contact Jen at JBorra@StarfieldSmith.com or at (215) 542-7070. 

 

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Seminars                Seminars and Events 

  

 

SBA Lending Update 2013:  Trends, Regulations & a look at SOP 50 10

 

Presented By: Community Bankers Webinar Network

Instructors: Kimberly A. Rayer & Janet M. Dery

Date:  February 28, 2013

Time:  3:00 pm ET

Location:  Webinar

  

For more information about this event and/or to register, click here.

 

Closing & Funding the SBA Loan

 

Presented By:  NAGGL

Instructor:  Ethan W. Smith

Dates:  March 11, 2013 & March 12, 2013

Location:  Hyatt Regency Orange County

 

For more information about this event and/or to register, click here.

 

Advanced SBA Loan Documentation and Closing

 

Presented By:  NAGGL

Instructor:  David W. Starfield

Date:  March 13, 2013

Location:  Hyatt Regency Orange County

 

For more information about this event and/or to register, click here.

 

Getting SBA to Honor the Guarantee

 

Presented by:  NAGGL

Instructor:  David W. Starfield

Date:  March 14, 2013

Location:  Hyatt Regency Orange County

 

For more information about this event and/or to register, click here.

 

NAGGL SBA Lending Technical Conference 

 

Presented By:  NAGGL

Date: April 30, 2013 - May 2, 2013

Location:  Hyatt Regency St. Louis at The Arch

 

For more information about this event and/or register, click here

 

 

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DYK                      

                         Did You Know...  

 

  Compass 

...that Starfield & Smith, PC is retained by lenders nationwide to consult on SBA eligibility and compliance matters?

 

For more information about this and other services Starfield & Smith, P.C. provides its clients, please contact Ethan Smith at (215) 542-7070 or at ESmith@StarfieldSmith.com.

 

 

 

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ContactInfo Starfield & Smith, P.C.
Pennsylvania Offices:
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phone: (215) 542-7070 | fax: (215) 542-0723

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Irvine, CA 92614
phone: (949) 333-4108| fax: (949) 679-1709

   

 
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