 |
|
IN THE SPOTLIGHT
 | | Amy R. Brownstein, Esq. |
| |
Amy maintains a broad commercial transactional practice. She represents lenders with respect to their closed SBA-guaranteed loan files, including reviewing and preparing SBA guaranty repurchase packages and responding to SBA recommendations. Amy also performs loan portfolio audits and represents lenders in the acquisition of individual SBA and conventional loans and loan portfolios. She assists lenders with post-closing and post-default actions, requests and obligations, advises lenders regarding due diligence documentation and requirements, and represents lenders in connection with government investigations. In addition, Amy reviews new loan files, drafts and negotiates loan documents for conventional and SBA 7(a) loans and represents lenders in loan closings.
Amy has extensive experience in all aspects of real estate transactions, including the purchase and sale of real property, retail and office leasing and architectural and construction contracts, and in general transactional matters. Amy has particular expertise in issues relating to title insurance.
ADMISSIONS:
* Pennsylvania
* New Jersey
* California
To read more about Amy, click here.
| |
|
Mark Danford / President / Waterstone LSP
| |
I have worked with Starfield & Smith, PC for almost 10 years. Ethan Smith and his team provide the best service and attention to detail that helps our companys continued success. I've never known another lawyer more prepared or focused. He and his team have the ability to dissect a loan, identify the tasks needed to put the lender in a position to protect their SBA guaranty. They provide great service, meeting the needs of our firm as a loan service provider, the lender and the borrower. I highly recommend Starfield & Smith to any lending institution closing SBA loan transactions.
| |
|
|
Starfield & Smith, PC is on Twitter!
Follow us for links to our most recent news and articles.
|
|
|
| FEATURED ARTICLE
** UPDATED **
Best Practices: Avoiding Businesses with an Associate of Poor Character under the new SOP 50 10 (5)(F)
By: Kimberly A. Rayer, Esquire
 | | Kimberly A. Rayer, Esquire |
A crucial step in determining whether a Borrower is eligible for SBA financing is to identify every owner, general partner, officer, director, managing member, owner of 20% or more of the equity of the Borrower, Trustor, and any person who is the day to day manager of the business operations of a Borrower (collectively, the "Subject Individual") and determine whether such Subject Individuals are of good character. The revised SOP 50 10 (5)(F) took effect on January 1, 2014 ("New SOP"), retains many of the prior requirements for vetting Subject Individuals, but provides new guidance which allows delegated lenders and SBA Field Officers to clear certain "912 Issues" that may arising when vetting Subject Individuals for good character.
Generally, the SBA defines poor character as anyone who is incarcerated, on probation, on parole, who is currently under indictment for a felony or a crime of moral turpitude, or who is presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction. See 13 CFR §120.110 (n).
Once the Subject Individuals are identified, a lender must have each of the Subject Individuals answer questions 1, 2 and 3 on the new SBA Form 1919, Borrower Information Form, as follows:
- Are you presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction?
- Have you been arrested in the past six months for any criminal offense?
- For any criminal offense - other than a minor vehicle violation - have you ever: 1) been convicted; 2) plead guilty; 3) plead nolo contendere; 4) been placed on pretrial diversion; or 5) been placed on any form of parole or probation (including probation before judgment)?
The Subject Individual must reveal all offenses even if he or she believes their record is sealed, expunged or otherwise unavailable. If the Subject Individual's answers "yes" to question 1, then the Borrower is not eligible for SBA financing.
However, if the Subject Individual answers "yes" to question 2 or 3, but is not currently on parole or probation, then SBA Form 912, Statement of Personal History, must be completed and the lender should obtain a complete understanding of each circumstance that the Subject Individual describes on Form 912. If the Subject Individual discloses a felony arrest, a Fingerprint Check is required and a Fingerprint Card (FD 258) must be completed. If the Subject Individual discloses a past misdemeanor, the background check may either be a Name Check or a Fingerprint Check.
Regardless of whether the past offense was a felony or a misdemeanor, the lender must submit the complete 912 package to the local SBA field office before loan processing can proceed. The field office will send the complete 912 package to the Office of Inspector General/Office of Security Operations (OIG/OSO) at SBA Headquarters. Typically submitting a SBA Form 912 to the OIG/OSO means that the SBA Loan application remains on hold until the "912 Issue" is cleared.
However, under the New SOP, the SBA is giving lenders with delegated authority and SBA Field Officers the power to clear certain 912 Issues if the information disclosed on the SBA Form 912 meets one of the following criteria:
- A single minor (misdemeanor) offense or arrest; OR
- Up to three minor offenses (arrests and/or convictions at one time or separately), concluded more than 10 years prior to the date of the SBA application; OR
- A Prior Offense cleared by the Director, Office of Financial Assistance (D/FA) or designee on a previous application where no other offenses have occurred since the previous application was cleared by the D/FA or designee. This clearance is only valid for six month from date of issuance.
Allowing lenders to have more control over vetting and clearing Subject Individuals of minor offenses is a great step to streamlining the SBA loan process. However, with great power comes great responsibility. It's crucial that lenders fully vet each Subject Individual and be sure that all information is revealed on SBA Form 912. If a lender learns post-disbursement of a discrepancy between what was disclosed on SBA Form 912 and the results of the Name or Fingerprint check conducted by the OIG/OSO, it may find out too late that its Borrower was not eligible for SBA Financing and it may be without an enforceable SBA guaranty.
For more information on the new SBA Form 912 process, please contact Kimberly A. Rayer, Esq. at 215.542.7070 or at krayer@starfieldsmith.com.
Back to Top
|
EVENTS & SEMINARS
SBA Loan Processing SOP & Policy Changes
How to Protect your SBA Guaranty
Avoiding Lender Liability
Date: March 12 - 14, 2014
For more information about this event and/or to register, click here.
Date: March 17 & 18, 2014
Location: Newport Beach, CA
For more information about this event and/or to register, click here.
Date: March 19 & 20, 2014
Location: Newport Beach, CA
For more information about this event and/or to register, click here.
Date: May 6 - 8, 2014
For more information about this event and/or to register, click here. |
|
|
Find 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!
Link yourself to Starfield & Smith to receive updates, articles and news pertaining to SBA and lending related topics.
|
|
|
