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In the Spotlight
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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.
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FEATURED ARTICLE
Best Practices: New Credit Elsewhere Requirements Effective 10/1/2015
By: Ethan W. Smith, Esquire
Over the past weeks, SBA lenders have been anxiously watching as the SBA 7(a) program approached, and then hit, the congressional limit of $18.75 billion of authorized 7(a) loans, temporarily halting 7(a) loan approvals with more than 60 days remaining in fiscal year 2015. Fortunately, thanks to the hard work of the National Association of Government Guaranteed Lenders and the quick action of the SBA, Congressional leadership, and the President, H.R. 2499 was quickly passed and signed into law, increasing the authorized lending limit from $18.75 billion to $23.5 billion for the remainder of FY 2015, and thereby averting a prolonged interruption to the flow of capital to America's small business community. 7(a) loan approvals resumed the afternoon of July 28, 2015. NAGGL, the SBA and the political leadership should all be applauded for their swift, decisive action in resolving this matter.
In addition to the increase in the loan level authorization, H.R. 2499 also contains provisions that amend the provisions of the Credit Elsewhere Test, effective as of October 1, 2015. The Credit Elsewhere Test, which is set forth at 13 CFR §120.101, provides that "SBA provides business loan assistance only to applicants for whom the desired credit is not otherwise available on reasonable terms from non-Federal sources." Historically, circumstances that would satisfy the Credit Elsewhere Test included items such as i.) the borrower requiring a longer maturity than permitted by lender's policy; ii.) the loan exceeding the lender's legal lending limit; iii.) the lender's liquidity depending upon its ability to sell into the secondary market; iv.) a collateral shortfall; or v.) the lender's policy restricting loans to startups or businesses in a particular industry. See SOP 50 10 5(H), Subpart B., Chapter 2, Paragraph III.C.4.
H.R. 2499 changed the acceptable credit elsewhere requirements to restrict lenders from relying upon the legal lending limit or the liquidity from sale into the secondary market provisions as the sole justifications for meeting the Credit Elsewhere Test. Accordingly, beginning October 1, 2015, lenders must provide a credit elsewhere justification other than the liquidity and lending limit justifications set forth above to meet the Credit Elsewhere Test. Because credit elsewhere is one of the fundamental underpinnings of eligibility for a 7(a) loan guaranty, lenders that fail to comply with these new rules may be subject to a denial of the SBA guaranty in the event of default or an enforcement action for failure to comply with program requirements.
For more information regarding the revisions to the SBA Credit Elsewhere Test, Contact Ethan at 267-470-1186 or at esmith@starfieldsmith.com.
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EVENTS & SEMINARS
America East Lenders Conference
Workouts, Liquidations and Everything Herndon
Instructor: Ethan W. Smith
Location: Baltimore, Maryland
For more information about this event and/or to register, click here.
Mid America Lenders Conference
Liquidation / Servicing Issues / Guaranty Purchase Process / Getting Your Guaranty Funded
Instructor: Ethan W. Smith
Location: Dallas, Texas
For more information about this event and/or to register, click here.
Closing & Funding the SBA Loan
Presented By: NAGGL
Instructor: Ethan W. Smith
Date: September 14-15, 2015
Location: Indianapolis, IN
For more information about this event and/or to register, click here.
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Brad L. Durham / President / Independent Bank of Texas
I have to tell you that we continue to become bigger fans of the firm every time we use you. While Texas and Pennsylvania are pretty far apart geographically, we now have only one firm when it comes to liquidations and/or collections on our SBA loans, and you guys are definitely the firm!
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