Top
 In This Issue:  
 

Featured Article

 

Newsletter Archive

 

In The Spotlight 

 

Seminars & Events 

 

What our Clients say... 

Quick Links:   

 

 
 
 
 

PCFS 2000

 
 
 

Contact Us 

 Spotlight

IN THE SPOTLIGHT

  

Timothy D'Lauro
Timothy D'Lauro, Esq.

Timothy's areas of practice include commercial lending, finance, real estate and corporate law. He assists commercial lenders with loan documentation, closing issues and with the drafting of corporate and finance documents related to conventional loans and government guaranteed loans through the SBA 7(a) and 504 loan programs.

 

He counsels small businesses on regulatory and licensing matters at the state and federal level, as well as corporate governance and other general business matters.

Tim is an approved closing attorney for certified development companies which facilitate U.S. Small Business Administration loan programs. He also reviews SBA guaranteed loan files and advises lenders on eligibility matters as well as documenting and closing loans under the SBA 7(a) and 504 loan programs to assist lenders in preserving and protecting their government guaranty.

ADMISSIONS:
* Pennsylvania
* New Jersey 

To read more about Tim, click here

  


CONNECT WITH US:

Find us on Facebook!

 

Like us on Facebook

 

Become our fan on Facebook to receive updates, articles and news pertaining to SBA and lending related topics.  

Starfield & Smith, PC is on LinkedIn!

 

View my profile on LinkedIn 

 

Link yourself to Starfield & Smith to receive updates, articles and news pertaining to SBA and lending related topics.  

Starfield & Smith, PC is on Twitter!

 

Follow me on Twitter

 

Follow us for links to our most recent news and articles.

FeatureArticle FEATURED ARTICLE 

Best Practices: What Lenders Need to Know about SBA Forms 1919 and 1920SX for 7(a) Applications

 

By: Janet M. Dery, Esquire  

  

Janet M. Dery
Janet M. Dery, Esquire
 
With SOP 50 10 5(F) having gone into effect on January 1, 2014, lenders now have the obligation to use SBA Forms 1919 and 1920SX for all 7(a) loan applications, instead of the SBA Forms 4 and 4I.  Following is some useful information about these forms that lenders should be aware of.
  1. Form 1919 is to be completed by and signed by the sole proprietor, all 20% or more owners of the business entity (for partnership, all general partners and any limited partners owning 20% or more of the equity in the partnership), all directors, officers, and managers of the business entity, including any day-to-day managers of the business entity, and any person required to be a guarantor under SOP 50 10 5(F)
  2. Form 1919 incorporates the provisions of SBA Forms 912 (Statement of Personal History), 1261 (Statements Required by Laws and Executive Orders), and 1624 (Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions).  Until a revised Form 1919 is released for use by the U.S. Small Business Administration ("SBA"), a separate Form 912 will need to be completed by all persons completing the Form 1919.  Once the new Form 1919 is released by the SBA, a lender will only need a separate Form 912 to be completed if any of the answers to Questions 1-3 on Form 1919 are positive.  Questions 14 and 15 of Form 1919 also indicate when SBA Forms 159 (Fee Disclosure Form and Compensation Agreement) and 601 (Agreement of Compliance) will need to be completed.
  3. At the end of Form 1919, the SBA has included a certification wherein the party executing the Form acknowledges that any false statement made in the completed form or any of the supporting documents provided by such party may subject the party to criminal penalties under 18 U.S.C. §1001 or 18 USC § 1014.  It further summarizes the potential fine amounts and possible jail time for any false statement made under such statutes.
  4.  All three Parts of the current Form 1920SX are required to be completed by 7(a) lenders.  Form 1920SX (Part A) contains the following certification:

"I approve this application to SBA subject to the terms and conditions stated in this and the attached documents.  Without the participation of SBA, to the extent applied for, we would not be willing to make this loan and in our opinion the financial assistance approved is not otherwise available on reasonable terms.  I certify that none of the Lender's Associates, including but not limited to its employees, officers, directors, or substantial stockholders (more than 10%) has a financial  interest in the Applicant.  I approve and certify that the Applicant is a small business according to the standards in 13 CFR Section 121, the loan proceeds will be used for an eligible purpose, and the owners and managers of the applicant business are of good character."

  

A lender should make sure to verify the information being certified in this paragraph and should document such verification.  Untrue certifications can be prosecuted under 18 U.S.C. §1001.  With the current economic atmosphere and sharp focus on preventing fraud, the SBA has become increasingly aggressive in prosecuting loan applicants and lenders that  willfully violate 18 U.S.C. §1001.

  

Lenders who were already working with loan applicants that had not submitted an application prior to January 1, 2014 should make sure that they provide Form 1919 to such applicants for completion, instead of SBA Form 4. Similarly, once the updated Form 1919 and 1920SX are released by the SBA, lenders will need to make sure that all applicants complete the correct version of Form 1919. The SBA will expect the proper Forms to be in a lender's file should a guaranty purchase request ever need to be submitted.  

 

For more information regarding the Form 1919 and Form 1920SX, please contact Janet at jdery@starfieldsmith.com or at 215.542.7070.

  

Back to Top

EVENTS & SEMINARS Events

2014 Southeastern Small Business Lenders Conference

 
Dates:  February 9 - 11, 2014
Location:  One Lake Oconee Trail, Greensboro, GA  
 
For more information about this event and/or to register, click here.
 

 

Presented By:  WPASGL
Date:  March 12 - 14, 2014
Location:  Seven Springs Mountain Resort, Champion, PA

 

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

 

Presented By:  NAGGL
Date:  May 6 - 8, 2014

 

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


Robert R. Dwyer / Senior Vice President / Noah Bank

 

The law firm of Starfield and Smith is unparalleled in its professionalism and expertise. On a daily basis, every single member of the firm, from the top to bottom, breaks down the typical stereotype of staid, overly cautious legal work. They do this by rolling up their sleeves and cranking out the work while telling it straight to the client. Their advice and product is always spot-on and delivered timely. They are a essential part of my business. The firm, and everyone in it, is at the top of their game.


                                          
OUR PRACTICE AREAS

 

SBA Compliance Audits  |  SBA Guaranty Purchase Reviews & Recovery

SBA Franchise Reviews |  SBA Lender Training

Regulatory Compliance & Lender Oversight |  Loan Documentation & Closing

Commercial Litigation |  SBA Portfolio Management

SBA & Conventional Creditors' Rights 

 

Contact
Starfield & Smith, PC
  
 
Pennsylvania Office:
1300 Virginia Drive | Suite 325 | Ft. Washington, PA 19034
phone: 215.542.7070 | fax: 215.542.0723
  
Philadelphia Office:
2000 Market Street | Suite 500 | Philadelphia, PA 19103
phone: 215.542.7070 | fax: 215.542.0723
  
Florida Office:
1101  North Lake Destiny Road| Suite 105 | Maitland, FL 32751
phone: 407.667.8811 | fax: 407.667.0020
 
 
This email is an advertisement from Starfield & Smith, P.C. and is subject to this disclaimer.
 © 2009-2014 Starfield & Smith, P.C. All Rights Reserved