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Spotlight
IN THE
SPOTLIGHT! 

Norman E. Greenspan
Norman Greenspan, Esquire
Norman concentrates his practice in complex commercial and corporate litigation, and white collar criminal defense. Norman has successfully represented many high profile clients in civil, criminal and administrative litigation matters and has tried over 60 cases to judgment. Norman's clients have included public and privately held entities, and individuals. He serves a wide range of clients in areas such as: contracts; creditor's rights; false claims act; government investigations; internal corporate investigations; financial services; securities; corporate governance; intellectual property; antitrust; real estate; restrictive covenants; class actions; bank fraud; tax; healthcare fraud; environmental; government contracts; and business fraud. 

ADMISSIONS:

  • Pennsylvania
  • Supreme Court of the United States
  • U.S. District Court - Eastern District of Michigan
  • U.S. District Court - Eastern and Middle Districts of Pennsylvania  
  • U.S. District Court - Northern District of Illinois
  • U.S. Court of Appeals for the Third Circuit

To read more about Norman, click here
  

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FEATURED ARTICLE FeatureArticle

Best Practices: Documenting Disbursements: Construction Loans    

By: Jennifer Borra, Esquire 
Jennifer Borra
Jennifer Borra, Esquire

Documenting disbursements can be a monumental task for SBA lenders on construction loans. SBA cites failure to use loan proceeds as required by the SBA loan authorization as one of the most common lender deficiencies noted in PLP audits and guaranty purchase reviews.  Construction loans present a multitude of pre-closing and post-closing challenges for lenders in clearly and accurately documenting the use of proceeds for a construction project.  This article briefly examines some of the due diligence documents lenders should consider obtaining at a minimum, to verify use of loan proceeds both pre-closing and post-closing for a construction loan.

Pre-Closing Due Diligence
  • Obtain a fully executed copy of the construction contract
  • Obtain a copy of the final plans and specifications from the borrower
  • Ensure that no construction has commenced prior to initial disbursement of the loan
  • Obtain an agreement from the borrower and contractor that no change orders shall be implemented by the parties without the lender's prior written approval
  • Engage a construction monitoring firm to verify progress on the project prior to making future disbursements
  • Perform a pre-closing site inspection to verify no work has commenced; alternatively, verify work has been completed and fully paid for (with accompanying lien waivers) if work was paid for by borrower's equity injection
  • Obtain an agreement from the borrower that lender is not obligated to finance any cost overruns
Post-Closing Due Diligence
  • Perform interim site visits to ensure project status/completion prior to disbursing any funds to contractors
  • Obtain lien waivers from all materialmen,  contractors and sub-contractors prior to each draw
  • Proactively review borrower's financial information on a regular and ongoing basis from the date of closing to ensure there are no adverse material changes prior to each draw
Failure to obtain the required construction documents and perform the necessary due diligence prior to each construction loan advance could result in a repair or complete denial of the SBA guaranty.  Lenders must adopt best practices for monitoring their construction credit facilities to minimize the risk of losing the SBA guaranty.  For more information regarding construction loan disbursements, please contact Jen at 267-470-1206 or at [email protected]
SeminarsSEMINARS & EVENTS

NAGGL 2016 SBA Lending Technical Conference
Presented By:  NAGGL
Date:  May 2, 2016 through May 4, 2016
Location:  Hyatt Regency St. Louis at the Arch, St. Louis, Missouri

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

Avoiding Lender Liability
Presented By:  SBA West Virginia District Office
Instructor:  Ethan W. Smith
Date:  May 17, 2016 at 11:00am EST
Location:  Webinar

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

WPASGL 2016 Quality Circle
Presented By:  Western Pennsylvania Association for SBA Guaranteed Lending  (WPASGL)
Instructor:  Kimberly A. Rayer
Date:   May 22, 2016 through May 23, 2016
Location:   Nemacolin Woodlands

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

TestimonialsWHAT OUR CLIENTS SAY... 

Mark Danford / President & CEO / 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.
 
                                          
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