 |
|
In the Spotlight
|
Kim concentrates her practice in the areas of commercial lending, commercial contracts and corporate law. She represents financial institutions nationwide, including national banks, community banks, credit unions and non-bank lenders, in extending commercial credit facilities to small and mid size businesses. Kim has extensive experience in the areas of government guaranteed financing, as well as business and real estate acquisition financing, lines of credit, healthcare financing and other secured and non-secured credit transactions. Kim advises lenders on eligibility, documenting and closing loans under the SBA 7(a) and 504 loan programs. As a closing attorney, she prepares commitment letters, reviews credit approval and loan files, drafts, and negotiates loan documents and coordinates closing and funding of transactions. She also assists lenders with loan modifications and loan work outs. With her experience with Article 9 of the Uniform Commercial Code and the U.S. Bankruptcy Code, Kim assists her clients in lien priority issues, intercreditor agreements, as well as creditor's rights in bankruptcy.
ADMISSIONS:
- Pennsylvania
- New Jersey
- Federal District Court for the Eastern District of Pennsylvania
To read more about Kim, click here.
| |
|
|
|
Starfield & Smith, PC is on LinkedIn!
Link yourself to Starfield & Smith to receive updates, articles and news pertaining to SBA and lending related topics.
|
|
Find us on Facebook!
Become our fan on Facebook to receive updates, articles and news pertaining to SBA and lending related topics.
|
|
|
|
FEATURED ARTICLE
Best Practices: Clarifications to SBA's Debt Refinance Requirements
By: Ethan W. Smith, Esquire
On May 4, 2015, the SBA released version H of SOP 50 10 5. The issuance of this new SOP was announced by the Agency in SBA Information Notice 5000-1340 and is effective for all loan applications received after May 1, 2015. Of particular interest to 7a lenders are the clarifications to the SBA's requirements for debt refinancing. Highlights of the clarifications to the debt refinance requirements include the following:
- SBA has clarified that debt that was not eligible for SBA financing at the time it was originally made, may be refinanced with an SBA loan if the condition that would have made the loan ineligible no longer exists.
- The interest expense for the debt to be refinanced must be reported on the borrower's business tax returns.
- If the debt that is being refinanced was the first extension of credit to the borrower, then the lender must document that the proceeds from the original loan were used for the applicant and were not used for any ineligible purpose.
- If the debt being refinanced was itself a refinance of debt, in whole or in part, then the interest expense associated with the debt must be reported on the borrower's business tax return for at least the last two full tax cycles and the borrower must certify that the proceeds of the original loan were used exclusively for the applicant and were not used for any ineligible purpose. This would appear to preclude refinancing a debt that has already been refinanced at least once, but has not seasoned for at least two years from the date that the original debt was incurred.
- Business credit card debt may be refinanced if the lender confirms that the card is issued to the business and obtains a certification from the borrower that all charges on the account were for business related purposes. Any personal charges must be identified and deducted from the balance being refinanced.
- Personal credit card debt that was incurred for business purposes if the requirements for refinancing business credit card debt are met and the lender obtains copies of the credit card statements and receipts for any business expenses over $250.
These clarifications to the debt refinancing requirements should help lenders know what the Agency's specific requirements are for proving that debt was eligible for SBA financing at the time it was incurred and how to deal with the practical problem of documenting eligibility for loans that may have been refinanced multiple times. Additionally, these changes clearly identify which documents the SBA expects lenders to examine when making their eligibility determination for debt to be refinanced. SBA lenders should make sure that they begin following these guidelines immediately to avoid risking their guaranty.
For more information regarding the SBA's clarification to its guidelines for debt refinancing, please contact Ethan at 267-470-1186 or at esmith@starfieldsmith.com.
|
EVENTS & SEMINARS
Exploring the SOP
Presented By: SBA
Date: May 19, 2015 @ 10:00am EST
Location: Webinar
For more information about this event and/or to register, click here.
Avoiding Lender Liability
Presented By: SBA
Date: May 26, 2015 @ 10:00am EST
Location: Webinar
For more information about this event and/or to register, click here.
|
Kim Hellweg / Senior Loan Closer / United Community Bank
I have had the pleasure of working with Starfield & Smith over the past 5 years and have always found them to be reliable and responsive. Whether it is just a standard SOP question or closing a loan in a very short time frame to meet a deadline for a customer, they have the expertise, experience and qualified staff needed to assist in any situation. I have confidence that they are hard at work to help assure that the loans I close are of the highest quality and closed in accordance with the SBA's SOP. I know that they are there to make sure that I am doing the best job possible for myself and for the lending firm I am working with. I have worked with many attorney firms over the years and the quality, knowledge and experience of a good firm can make a big difference in my closing - that is why I choose to work with Starfield & Smith.
|
|
|
|
|
