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IN THE SPOTLIGHT
 | | Katie O'Brien, Esq. |
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Katie concentrates her practice in the areas of commercial lending, real estate and commercial contracts. She represents financial institutions nationwide, including national banks, community banks, credit unions and non-bank lenders, who extend commercial credit facilities to small and mid size businesses. Katie has extensive experience in the areas of government guaranteed lending and acquisition financing and has closed hundreds of commercial finance transactions, from start-up business transactions to complex real estate and business acquisitions.
Katie advises lenders on eligibility matters and documenting and closing loans under the SBA 7(a) and 504 loan programs and assists lenders in preserving and protecting their government guaranty. As a closing attorney, Katie reviews loan files, drafts and negotiates loan documents, advises on due diligence documentation and coordinates the closing and funding of transactions.
ADMISSIONS:
To read more about Katie, click here.
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FEATURED ARTICLE
Best Practices: New E-Tran Requirements in the 7(a) Servicing and Liquidation Matrix
By: Timothy D'Lauro, Esquire
 | | Timothy D'Lauro, Esquire |
The SBA recently published Information Notice 5000-1329 which became effective on February 1, 2015. In the Information Notice, the SBA updates the current Servicing and Liquidation Actions 7(a) Lender Matrix (the "Matrix") to include additional circumstances when all 7(a) Lenders will be required to notify the SBA of certain unilateral servicing and liquidation actions through E-Tran.
The Matrix is a tool created by the SBA to help guide SBA 7(a) Lenders in servicing and liquidating their loans, and provides Lender with a summary of requirements that are defined in the SOP. The Matrix describes actions that Lenders need to take after the loan has been approved but before final disbursement, and loans that have been completely disbursed from closing.
In previous additions of the Matrix, the Lender was required to notify the Loan Guaranty Processing Center or the proper Commercial Loan Servicing Center when taking certain unilateral actions. The new Matrix (Version 10) requires Lenders to use E-Tran to notify the SBA in situations where they previously notified the appropriate Center.
The Procedure Notice states that beginning February 1, 2015, Lenders will be required to notify the SBA via E-Tran for the following unilateral actions that were previously not sent via E-Tran:
- Cancel the SBA Guaranty
- Extend the Maturity Date (prior to stated maturity expiring)
- Note: If the loan was sold on the secondary market, prior written consent from investor and/or Fiscal Transfer Agent is required for any action that alters the original loan repayment terms before Lender approves the action and notifies the SBA via E-Tran
- Assumption of the loan without release on an Obligor (adding a borrower)
- Adding a Guarantor to the loan
Another significant change to the new Matrix is contained in the Footnotes. Footnote 2 of the Matrix states "on a fixed rate loan the lender may change the rate, and the lender may also change the Note from a fixed rate into a variable rate or from a variable rate to a fixed rate, provided the new interest rate does not exceed the maximum allowable interest rate at the time of the loan application." This Footnote provides added authority to the lender to modify the interest rate, but they must still comply with the SOP allowable interest rates that were in place at the time of the application.
Lenders should be aware of these new E-Tran requirements in order to make sure they comply with all new requirements.
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EVENTS & SEMINARS
** NEXT WEEK **
Presented By: NAGGL Date: February 17-18, 2015 Location: Grand Hyatt, DFW, Dallas, Texas
For more information about this event and/or to register, click here.
2015 Southeastern Small Business Lenders Conference
Presented By: Georgia Lenders Quality Circle
Date: February 23, 2015 - February 25, 2015
Location: Augusta Marriott at the Convention Center
For more information about this event and/or to register, click here.
Date: March 11 - 13, 2015
Location: Seven Springs Mountain Resort, Champion, PA
For more information about this event and/or to register, click here.
Date: March 23-26, 2015 Location: Long Beach, CA
For more information about this event and/or to register, click here.
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Jeff Aiello / President / American Coil, Inc
You and your firm will be my go-to source for legal counsel on business matters from now on. You have earned my trust with your integrity, drive and common-sense approach to complex matters.
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