eBulletin Archives
Business Lending Community ‘Must Reads’
We provide an ongoing stream of articles on issues concerning the business lending community.
JRB 504 WEBINAR COMING UP THIS THURSDAY!! HOT TOPICS: OUR TAKE ON COVID-19 INDUSTRY IMPACT – AND MORE
TUNE IN @ I P.M. EASTERN/10 A.M. PACIFIC THIS WEEK’S HOT TOPICS Analyzing the Impact of COVID-19 Richard Jeffrey No Adverse Change Findings in COVID-19 Emergency Janice Garlitz, P.C. Important Reminders Sandy Mortan Join JRB Senior Associates Sandy Mortan and [...]
FROM RICHARD @ JRB … CHECK OUT SBA’S TAX TRANSCRIPT REQUIREMENTS
President’s Day Weekend. How did you spend it? Time was, I did my taxes. Then I realized this was the last long weekend before Memorial Day – and before Tax Season officially kicked off. So I decided there were more [...]
FROM RICHARD @ JRB … WHAT’S A BUILDER TO DO? FIRST OFF, DON’T RUN OUT OF PATIENCE!
With a nod to Ricky Ricardo, often JRB reader questions need lots of ‘splainin’. Like this one that came in the other day. Hang in there: Patience Lender. Richard, SBA is so inconsistent! Last year SBA approved a loan for [...]
FROM REBECCA @ JRB … ALL IN ALL, A GOOD DECADE. LET’S LOOK FORWARD TO THE NEXT 10 YEARS!
Farewell, 2010s. All in all: a pretty good decade. Over the past 10 years, we’ve seen slow but steady economic improvement, along with several developments on the SBA front: a new SBAOne platform, various versions of the SOP 50 10 [...]
FROM RICHARD @ JRB … THOUGHT FOR THE NEW YEAR … ‘IT TAKES TIME TO SAVE TIME!’
Ah, all those thoughts for the new year … we resolve to work more efficiently, to save paperwork, and work smarter, not longer. The adages go on and on. Here’s a thought: Sometimes a short cut ends up to be [...]
FROM ALL OF US @ JRB … HAPPY NEW YEAR!!
Happy New Year! “Write it on you heart that every day is the best day in the year.” −Ralph Waldo Emerson It’s almost 2020! Lights are shining on Main Street. Let’s rejoice in a great year for SBA [...]
FROM RICHARD @ JRB … I’M HAUNTED BY THE GHOST OF A PROJECT PAST – IN A GOOD WAY!
With apologies to Charles Dickens, the Ghost of Project Past appeared to me recently and helped me solve a very real situation in the present: A client had just turned to me for help in structuring financing for a new [...]
HAPPY THANKSGIVING! FROM ALL OF US @ JRB!!
On Thanksgiving Day … “Be present in all things, and thankful for all things” Maya Angelou Thanksgiving is almost here. You know Thanksgiving. It’s in that parade of holidays on the heels of Halloween. Yet Thanksgiving is special. We gather. [...]
FROM REBECCA @ JRB … ANNUAL LOAN REVIEWS: NOW’S THE TIME!
“The time to repair the roof is when the sun is shining.” ― John F. Kennedy JFK had a point there. Drip. Drip. Drip. It’s a little late to fix the roof when there’s water on the ceiling. By the [...]
FROM RICHARD @ JRB … AFTER NADCO: PLAYING THE WAITING GAME
There’s always a lot of fun and camaraderie at NADCO’s Annual meeting. This year was no exception. And this year we introduced JRB team member Senior Associate Lori McCausland to NADCO. She's a long-time JRB team member who is developing [...]
JRB e ALERT! NAGGL’S SMALL BUSINESS LENDING CONFERENCE OCTOBER 28-30 NEW ORLEANS ∙ THE PLACE TO BE ∙ STOP BY OUR BOOTH #78
We’re headed for The Big Easy! NAGGL’s Annual Small Business Lending Conference meets in New Orleans, Oct., 28-30. We’re jazzed. NAGGL is the long-time state-of-the art gathering for great networking and information from “SBA World” – industry experts, SBA leadership, [...]
SPECIAL NADCO ALERT! FROM RICHARD @ JRB … SEE Y’ALL IN NASHVILLE!!
Greetings from Music City! Y’all put your hands together for a great NADCO Annual Meeting. We’re in Nashville and our JRB booth is all set up. So drop on by Booth 207 in the Exhibit Hall. We’d love to see [...]
FROM REBECCA @ JRB … EARLY SBA LOAN DEFAULT: WHEN AND HOW DOES IT HAPPEN? HOW CAN YOU PREPARE?
A loan that looked good goes sour. What triggers early default? Several factors can contribute: The borrower fails to make a scheduled loan payment. A scheduled loan payment is made with proceeds from the sale of collateral rather than from [...]
FROM RICHARD JEFFREY @ JRB … DEALING WITH THE ELEPHANT IN THE ROOM: THE SHUTDOWN
Elephant in the Room: The thing nobody wants to talk about. So let’s talk about it. A huge elephant, taking up wall-to-wall space and sucking up all the air, The U.S. government shutdown. At JRB, our emails are flooded with [...]
NEW YEAR. GREAT PLANS … OR SO WE SAY!
New Year, Great Plans! I don’t know if you’re like me. I start off each year with great plans and resolutions and by the end January I’m holding tight to one or two because I’ve already broken the rest. Setting [...]
FROM RICHARD JEFFREY @ JRB … QUESTION OF THE DAY: CAN SBA FUNDS PAY OFF A SHAREHOLDER LOAN?
I got this question just this morning. It’s a knotty one! Let’s untangle the issues and see what kind of solution we can reach. Q: Hi, Richard. Here's my question of the day. I got a call from a prospect who [...]
LIQUIDATIONS: RESOLVE TO KEEP THINGS IN ORDER … YEAREND TIPS FROM REBECCA
No doubt about it. Liquidations can be stressful. Each is its own “elf on the shelf” so to speak and takes time and concentration to navigate. This isn't easy while you’re generating new loans and servicing existing ones. Often we [...]
FROM RICHARD JEFFREY @ JRB … CONSTRUCTION LOAN INTEREST AN ELIGIBLE PROJECT COST? ELEMENTARY, DEAR LENDERS? WELL, IT DEPENDS.
I always enjoy getting questions from CDC lenders. They give me a chance to see case study examples of what’s going on day-to-day. Sometimes their situations take twists and turns. Then, like Sherlock Holmes, I dig deeper. Let’s call this [...]
GOING ‘GREEN 504’ COULD SEAL THE DEAL. HERE’S HOW!
At JRB we deal with all sorts of SBA lenders including CDCs, so we frequently get calls from 7(a) lenders looking to structure a 504 loan. This situation came in recently: Q: Richard, I have a loan request from an [...]
BIG NEWS @ NAGGL! PROPOSED AFFILIATION RULE COMMENT PERIOD EXTENDED. CALL TO ACTION: LET YOURSELF BE HEARD!!
Lots of action at this year's NAGGL Annual Conference and lots to think about, with changes in SBA lending discussed at every Breakout Session. One of the BIGGEST and the one with a call to action is Proposed Rule RIN: [...]
FROM ALL OF US @ JRB … HAPPY THANKSGIVING!
On Thanksgiving Day … We face many questions. Baste or brine? New recipe or tried and true? It’s halftime. Carve the turkey? Of course there’s a lot more to it. All across America we pause to celebrate our achievements, reflect [...]
JRB eAlert! IT’S SMALL BIZ SATURDAY NOVEMBER 24th!
Tell your friends … Reach out to your local small businesses!! “Do what you do well so that they will see it and want to bring their friends.” −Walt Disney Think Big. Shop Small.® Tell Your Friends. It Works. Folks [...]
SBA 504 HOTEL LOANS: DOWN BUT DEFINITELY NOT OUT. ‘NO MORE HOTELS’ RUMORS ARE EXAGGERATED!
The Rumor. Chances are you’ve heard what I have: “SBA has shut down lending to hotels.” That’s the buzz I hear when I get together with other 504 lenders. But wait. There’s been nothing official from SBA. Still, it’s a [...]
JRB e ALERT! NAGGL’S ANNNUAL SMALL BUSINESS LENDING CONFERENCE NOVEMBER 13-15 ∙ SAN DIEGO ∙ THE PLACE TO BE! STOP BY OUR JRB BOOTH #77
NAGGL’s Annual Small Business Lending Conference has long been a state-of-the-art gathering for small business lenders, lender service providers, federal legislators, and SBA leadership. This year’s sold-out conference is again the place to be NAGGL ’18 promises a full schedule [...]
FROM RICHARD JEFFREY @ JRB … WRAPPING UP NADCO’S ANNUAL MEETING
Networking with so many 504 professionals is one of the things I enjoy most at NADCO’s Annual Meeting. We had a pretty steady stream of visitors at the J R Bruno booth, with a lot of people asking how we [...]
SBA LENDERS: AUTUMN IS HERE, SO CHANGES ARE COMING – REFLECTIONS FROM REBECCA AND SOME ‘TOOLS OF THE TRADE’
"Without continual growth and progress, such words as improvement, achievement, and success have no meaning." −Benjamin Franklin It’s October, so autumn is here for real, even if the leaves aren’t turning color where you are. For me, fall represents reflection [...]
FROM RICHARD JEFFREY @ J.R. BRUNO … SEE YOU AT NADCO’S ANNUAL MEETING OCTOBER 16-18 IN FORT LAUDERDALE!
It’s time for another NADCO Annual Meeting and, as always, I’m looking forward to it. The meeting is a wonderful opportunity to catch up with old friends and colleagues, meet new ones, and swap stories about our loan programs. And [...]
LOAN REVIEWS: PART OF YOUR ANNUAL BUDGET DISCUSSION? THEY SHOULD BE. HERE’S WHY!
We’re into the 4th Quarter so about now you’re conducting annual budget discussions and strategic planning for the next fiscal year. At the same time, you should be scheduling internal loan reviews in preparation for yearend reporting because it’s critical [...]
JRB e ALERT! TYING THE KNOT: UPDATED SBA FORM 159 UNITES 7(a) AND CDC/504 PROGRAMS
SBA Form 159 (7a) and SBA Form 159(504) are now a couple – wedded into one document titled SBA Form 159, Fee Disclosure and Compensation Agreement, which will serve both programs. With an eye to simplified information collection, SBA Information [...]
JRB’S LORI MC CAUSLAND: ON BOARD FOR 5-PLUS YEARS – AND STILL ENJOYING THE RIDE!
I’m a “look forward” kind of person, so reflecting on the past isn’t really my thing. But I guess my 5-plus years with J.R. Bruno & Associates gives me a reason. It’s been an amazing ride. I’m still happily on [...]
SBA’S ‘ALL APPROPRIATE INSURANCE’ REQUIREMENT … WHAT’S ‘APPROPRIATE’ INSURANCE? WELL, THAT’S EASY.
At JRB, we perform annual loan reviews for lenders across the country. Yet often we get questions from lenders asking why their reviewer criticized one thing or another – even if we’re not performing their review. Among the most common [...]
USING AN SBA LOAN TO REFINANCE BUSINESS DEBT: EASY TO DO? ASK JRB!
Is debt refinancing with SBA an easy do? Yes. And no. Using simple prudent lending practices, some common sense, and information from SBA’s SOPs, it’s not difficult. First things first. One quick answer: Refinancing past due debt or debt where [...]
FROM RICHARD JEFFREY @ JRB … SBA’S INF0 NOTICE ON FY 2019 504 FEES – IN PLAIN ENGLISH!
Whenever SBA sends out a new notice or issues a new reg, our JRB Team gets busy. Lately, we’ve been real busy answering questions about the new Information Notices regarding SBA loan fees for the next fiscal year. I’m following [...]
HEY, SBA LENDERS! NEW 7 (a) WIZARD AND REVISED 504 FORMS
The new SBA 7(a) Authorization Wizard 2018 is available for lenders to download. Revised 504 SBA forms 1504 and 1505 are available too. These forms are updated to reflect the 25-year debenture.
JRB e ALERT! SBA LENDERS: NEW SBA 7 (a) FEES EFFECTIVE 10/1/18
Quick reminder: Concurrent with SBA’s new fiscal year, SBA Information Notice 5000-180010 announces the 7(a) loan fee schedule, effective October 1, 2018 for Fiscal Year 2019. In a change from the past few years, there is no separate Notice regarding [...]
FROM RICHARD JEFFREY @ JRB … DOING THE MATH … HOW MUCH LIFE INSURANCE FOR A 504 LOAN?
It’s easy to determine when you need to take an assignment of life insurance as collateral for a 504 loan. The SOP is clear: “Life insurance is required for the principals of sole proprietorships, single member LLCs, or for businesses [...]
SBA ISSUES NEW ‘PERSONAL FINANCIAL INFORMATION STATEMENT’ FORM 413 EFFECTIVE JULY 24, 2018
Heads up SBA Lenders: Information Notice 5000-180009 issued July 24, 2018 announces an updated Personal Financial Information Statement Form 413 and the new form’s continued use through March 31, 2021. Updates include: Change to the Certification field requiring certification from [...]
FROM RICHARD JEFFREY @ JRB … MAKING RURAL LOANS EASIER: SBA’S NEW PILOT PROGRAM
Keeping track of changes in SBA lending programs is one of the more interesting things we do at JRB. It’s one important way we’re much more than back office support for our clients. They expect us to advise them of [...]
SBA UPDATES THE LENDER PORTAL!
SBA Information Notice 5000-180007 effective June 28, 2018, announces key additions to the Office of Credit Risk Management’s (OCRM’s) Lender Portal for 7(a) lenders and CDCs. The Portal’s enhancements and updates will increase an SBA lender’s ability to proactively monitor [...]
STARS, STRIPES AND JRB – WE’RE HEADED FOR D.C.! AMERICA EAST CONFERENCE FOR SBA LENDERS AUGUST 1-3
We're meeting up with SBA lenders and industry leaders from up and down the Eastern Seaboard at this year's America East, August 1-3. As always, America East is a great opportunity to network with peers and get the latest updates [...]
FROM RICHARD JEFFRY @ JRB … Q: DO OUR ANSWERS PRODUCE NEW QUESTIONS? A: YEP. IT’S HOW WE ROLL!
Our client Q&A sessions just keep rolling! Answers to questions often draw new questions from other clients. Recently we answered a question about a business that was owned more than 50% by a citizen of a foreign country. That answer [...]
MARIJUANA REVISITED – SBA NOT BLOWING SMOKE!
Hot-Button Issue Getting Hotter! SBA means business. Back in March we alerted you to SBA’s first-time language addressing retail marijuana-businesses. See SOP 50 10 5 (J) (1/1/18). Subpart B, Chapter 2, V. Eligible Use of Loan Proceeds, F, 1, g, [...]
HAPPY 4TH OF JULY!
From Sea to Shining Sea … Happy 4th From All of Us at JRB!!
DEFERMENT, WORKOUT OR FORBEARANCE? THAT’S THE QUESTION!
We see a common trend in our loan review and liquidation work with clients across the country: As soon as a loan begins showing stress, so do the lender's procedures. In a perfect world this wouldn't be the case, but [...]
FROM RICHARD JEFFREY @ JRB … WHEN’S A DEVELOPER ELIGIBLE FOR SBA FUNDING – OR NOT?
THE KEY: PRIMARY SOURCE OF REVENUE I had an interesting experience recently. A client and I had a running back-and-forth about possible situations when a real estate development project would be eligible for an SBA loan – or not. It [...]
WESTWARD HO, JRB! SEE YOU AT AMERICA WEST!!
We’re heading out to join SBA lenders from the Western states at the America West Small Business Lenders Conference, June 20-22 in Costa Mesa, California. This year’s conference is jam packed with educational sessions for SBA lenders of all sizes [...]
IMPORTANT FOLLOW UP! NEW APPRAISAL AND EVALUATION GUIDELINES: THEIR IMPACT ON SBA LOANS
NADCO Conference Recap Follow Up. The Conference recap I issued in May covered the Amendment to the Interagency Guidance on Appraisals and Evaluations for Financial Institutions, effective April 2, 2018. As a refresher, this amendment raises the threshold for required [...]
CAN THE APPLICANT ACCESS CREDIT ELSEWHERE? MAYBE.
GOT A POSSIBLE ISSUE? THINK IT THROUGH! Credit Elsewhere. Is there an SBA issue debated more? All the talk – and the ensuing scrutiny – by Purchase Centers, OCRM, OIG and Congress resulted in changes detailed in SBA Policy Notice [...]
FROM RICHARD JEFFREY @ JRB … WRAPPING UP NADCO’S SPRING SUMMIT
NADCO’s Spring Summit is always a special conference. Where else can you meet so many SBA leaders in one place? After all, the Summit is held in Washington, D.C., so they’re in the neighborhood! With great networking with CDC colleagues, [...]
SBA’S NEW LOOK: GET YOUR RED-HOT NEW LOGOS NOW!
SBA Lenders: SBA’s new logo is ready for your use on window decals, window clings and on your website. Get decals and window clings from your local SBA district office. Download a digital decal for your website from the SBA [...]
DOCUMENTING EQUITY INJECTION FOR EARLY DEFAULT LOANS: DOING IT RIGHT WILL PROTECT YOUR GUARANTY
“If we had a hammer …” Time and again we’ve pounded away at this issue in our eBulletins and client discussions: When it comes to protecting your guaranty, Equity Injection is a top reason for denial or repair to the [...]
FROM RICHARD JEFFREY @ JRB … SBA ELIGIBILITY Q&A: WHAT ABOUT BUSINESSES CATERING TO SPECIFIC GENDER AND AGE GROUPS?
I love getting “real world” questions from our clients! I get a chance to research some challenging issues – and importantly to assist in decision making and avoiding possible SBA denials before they happen. And by extension, I can help [...]
SBA LOAN REVIEW: IT ALL COMES DOWN TO GOOD HOUSEKEEPING!
PREPARING FOR AN SBA LOAN REVIEW: IT ALL COMES DOWN TO GOOD HOUSEKEEPING! Loan Reviews. Let’s talk. Are you facing a PARRiS Targeted Review? An Annual Review? Or working to stay on top of things to keep your portfolio from [...]
JRB ‘ON THE ROAD AGAIN’ – NAGGL AND NADCO CONFERENCES IN MAY
JRB ‘ON THE ROAD AGAIN’ –NAGGL AND NADCO CONFERENCES IN MAY NAGGL’S SBA LENDING TECHNICAL CONFERENCE MAY 1-3 Chicago, Chicago! We’re headed to the 34th SBA Lending Technical Conference in the windy city May 1-3. NAGGL has always been a [...]
SUBMITTING 1502 REPORTS: IT’S ALL ABOUT THE DETAILS!
SUBMITTING 1502 REPORTS: IT’S ALL ABOUT THE DETAILS! INCORRECT FILING CAN AFFECT YOUR PARRiS SCORE!! As with all SBA processes, accurate 1502 reporting is critical to maintaining your portfolio’s performance and a positive PARRiS score. And as with all processes, [...]
FROM RICHARD JEFFREY @ JRB … ANSWERING CLIENT QUESTIONS ABOUT SBA LOANS: Q&A TAKE 2
FROM RICHARD JEFFREY @ JRB … ANSWERING CLIENT QUESTIONS ABOUT SBA LOANS: Q&A TAKE 2 Following up on my recent eBulletin where I responded to a client’s question, I like the idea that it was a real-life question from a [...]
CREDIT ELSEWHERE TEST ELIMINATED FOR LESS THAN 20% OWNERSHIP
CREDIT ELSEWHERE TEST ELIMINATED FOR LESS THAN 20% OWNERSHIP SBA Policy Notice 5000-17057 effective 4/3/2018 for 7(a) and 504 loans, eliminates the Credit Elsewhere Test for those owning less than 20% of a business applicant and provides guidance on other [...]
SBA ANNOUNCES 25-YEAR FULLY AMORTIZED 504 LOAN
SBA ANNOUNCES 25-YEAR FULLY AMORTIZED 504 LOAN Effective 4/4/2018 and posted on the Federal Register on 4/4/2018, SBA has made available a 504 loan with a 25-year maturity in addition to the10- and 20-year 504 loans already available.
SBA SMALL BUSINESS WEEK APRIL 29-MAY 5, 2018
SBA SMALL BUSINESS WEEK APRIL 29-MAY 5, 2018 SBA’s Small Business Week kicks off in Washington D.C. with award ceremonies on April 29 followed by a nationwide bus road show and local events across the country. Now’s the time to [...]
REBECCA MENDOZA MARKS 10 YEARS WITH JRB!
REBECCA MENDOZA MARKS 10 YEARS WITH JRB! REFLECTIONS ON A DECADE OF TRAVELING THE SBA ROAD WITH GREAT SBA LENDERS ACROSS THE COUNTRY … Ten years in one place in our industry doesn’t happen often these days. I am happy [...]
TIME FOR SPRING CLEANING YOUR SBA PORTFOLIO!!
SPRING HAS SPRUNG! REFRESH. REFLECT. RENEW. TIME FOR SPRING CLEANING YOUR SBA PORTFOLIO!! I love spring. For me spring has always meant a time for renewal, for cleaning the cobwebs from brain, the dust from my files – and the [...]
FROM RICHARD JEFFREY @ JRB … WHAT ABOUT SBA LOANS TO BUSINESSES OUTSIDE THE UNITED STATES?
FROM RICHARD JEFFREY @ JRB … IT’S THE USA’s SBA – THEN WHAT ABOUT LOANS TO BUSINESSES OUTSIDE THE UNITED STATES? Our federal government’s Small Business Administration is unique around the globe – a government entity designed to boost local [...]
BACK-TO-BACK SBA LENDER CONFERENCES IN MARCH!!
JRB eAlert! WE’RE HITTIN’ THE QUALITY CIRCLE CIRCUIT! Georgia Lenders Quality Circle SE/South Eastern Small Business Lenders Conference ∙ 3/7-3/9 Western Pennsylvania Quality Circle Conference ∙ 3/14-3/16 From the hills of Asheville, North Carolina to the snowy slopes of Western [...]
PITFALLS IN PARRiS: WATCH OUT FOR PACKAGING FEES, REFERRAL FEES, CONTINGENCIES
Focusing on Fees. Sections of the newly minted SOP 50 10 5 (J) reinforce the Office of Credit Risk Management’s increased oversight of SBA lender relationships with – and fees paid to –Packagers/Referral Agents/Lender Service Providers. That’s a big signal [...]
NEWEST SBA DIRECTIVES AND MARIJUANA SALES – YOUR GUARANTY’S SMOKING GUN?
Hot issue! As more and more states are making marijuana sales legal, it looks like SBA and the Department of Justice are thinking along the same lines when it comes to retail marijuana businesses. The DOJ has issued new directives [...]
DEFINING ‘ASSOCIATE’ ACCORDING TO SBA
FROM RICHARD JEFFREY @ JRB … In a recent eBulletin we took a look at a case study involving two “associates” and what they went through to make SBA construction and 504 loans work for their project. Rough waters all [...]
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