“First, nothing is as permanent as a temporary fix.
Most of these remained in place for the next
year or two.” – Michael T. Nygard
Greetings!

Looming government shutdown! Stress! Yikes!

Some of us were stressing over the last-minute push to get loans submitted. Some were worried about whether error codes would clear in time.

And some were stressing about job security if the shutdown happened.

Lori has always taken the approach of looking for a silver lining to keep her focus positive. So, following her lead, I thought … where’s the silver lining in a shutdown?

Aha! We’d finally have time to take a breath and finish some of those temporary fixes before they become permanent obstacles!

When new SOPs are issued with major changes, we throw on a bandaid and hope it will hold until we have a minute to stitch a new policy or procedure together.

But when does that minute come? The changes fade into the rear-view mirror and, as our quote this month suggests, that “temporary band-aid” has suddenly become part of the process.

Which is, ultimately, not very effective!
LRM's SBA Notice Nook
Changes to Equity Injection Under the New SOP
SBA is cheerfully categorizing the changes in its recently-released SOP 50 7 3 as “improvements” – which they may well be, but Lenders still need to be aware of what those changes are!

In this article, we’re looking specifically at changes to equity injection requirements as they apply to new business loans granted to start-up businesses. SBA still requires equity injection for change-of-ownership loans; again, what we’re discussing here is specifically for start-ups.

The big change, in simple language: there is no longer any requirement from SBA for equity injection for a start-up business, regardless of the size of the loan.
THE LATEST NEWS FROM OUR BLOG
By Lori McCausland
Our last article discussed Post-Purchase Packages – the documentation required from Lenders by SBA for loans sold on the secondary market that have gone into default and were purchased under SBA’s guaranty. You can read that article here.

Obviously, not every Lender sells every SBA loan on the secondary market – so what do you need to attend to when you have loans in, or nearing, default and requiring liquidation?
So, we don’t have the reprieve (!!!) of a government shutdown – which, of course, is a good thing.

But it does mean that those “temporary” fixes are still hanging out there?

Given that there’s never any extra time, why not ask us for help? We can clarify the notices’ impact on your loan program, help you integrate the changes in ways that ease (instead of stress) your process, and make sure you’ve got everything in place for a smooth, effective operation.

We’re here for you!

Give us a call at 877.576.0819, or message us through our website, and we’ll set a time to talk.

Your Team at LRM Lender Consultants,
Lori N. McCausland
CEO
LRM Lender Consultants Inc.
484-645-3987
Rebecca L. Mendoza
President
LRM Lender Consultants Inc.
949-294-8490
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