Due to rising interest rates and uncertain economic conditions, community banks have seen their pipeline of business owners needing financing dwindle. Implementing a targeted lead generation program can remedy that.

SBA application processing and underwriting requires great attention to detail and planning to successfully navigate the SBA’s application and approval process. After submitting an application to the Loan Guaranty Processing Centers (LGPC), even the most diligent SBA professionals can be caught off guard by a “screen out” or “denial” of the loan application. In most cases, these issues raised by the SBA can be addressed satisfactorily and promptly; however, in some cases the “screen out” or “denial” is a result of new directives from the SBA’s Washington, DC headquarters or the LGPC Center Director. Sometimes these policy positions are never formally published in the SOP or can be new directives that have not yet been published.

Innovative Financing Solutions (IFS) has been recognized as a Philadelphia 100 Fastest-Growing Private Company – ranking 29th on this prestigious list. The Philadelphia 100 Award is one of the most sought after awards in the Philadelphia region. IFS’ President, Michael D. Ryan accepted the award at gala event held at The Crystal Tea Room in the Wannamaker Building, in Philadelphia.

On September 14, 2018, the Small Business Administration (SBA) announced the update and release of SBA Form 159, “Fee Disclosure and Compensation Agreement.” This updated form is designed to simplify the collection of information by combining the currently utilized SBA Form 159 (7a) and SBA Form 159 (504) into one comprehensive document titled “SBA Form 159.” This revised form will serve both the SBA’s 7(a) and 504 loan programs.

Over the years, Innovative Financing Solutions (IFS) has helped many small businesses obtain access to capital that would often have been unavailable to them under conventional lending guidelines. These businesses have gone on to create jobs, stimulate the economy and provide valuable products and services locally, regionally, nationally and even internationally. An example of how one of IFS’ small business clients took full advantage of its growth potential was the result of using a series of SBA 7(a) term loans and a conventional line of credit provided by an IFS partner lender.

In response to lender liability claims and disagreements between borrowers, lenders and regulators, Mike Ryan, President and CEO of Innovative Financing Solutions, seized on an opportunity. As a former Executive Vice President and Chief Lending Officer, Ryan decided to use his 33 years of experience to help financial institutions and business borrowers dealing with challenging commercial lending, legal and regulatory issues, as well as law firms handling banking and lending related issues.

Lenders should always make a good faith effort to help delinquent Small Business Administration (SBA) 7(a) borrowers bring their loan current by considering potential workout strategies. However, in some cases a workout strategy may not be feasible and the immediate next step is liquidation. It is incumbent upon lenders to prepare for liquidation as proactively as possible, understand when it is appropriate to classify a loan in liquidation, and understand the necessary steps to develop and pursue a liquidation plan. Doing so will protect the interests of the lender and the SBA, potentially increase recoveries, and limit the possibility of a repair or denial during a guaranty purchase.

The Small Business Administration (SBA) Guaranty Purchase process was developed by the SBA to evidence a participating lender has originated, closed, serviced, and liquidated a loan in accordance with SBA requirements and prudent lending practices before honoring the guaranty. The components of the 10 Tab Package should be understood by all levels of a lender’s SBA loan department as virtually all phases of the process are subject to scrutiny during a guaranty purchase. To follow is an outline of common questions raised by lenders in Innovative Financing Solutions’ network regarding this process.

Small and mid-sized businesses often struggle to find financing sources for a myriad of borrowing needs including the financing of machinery and equipment (M&E) to modernize or expand their business. These businesses operate in numerous capital-intensive industries including (but not limited to) manufacturing, construction, transportation, and distribution. And it’s not only capital-intensive businesses that need equipment – the services sector is in constant need of technology and other less durable equipment. For many of these businesses, the ability to acquire and finance equipment can determine their ability to successfully compete in today’s economy. Most often, companies seek financing for M&E from traditional lending sources such as community or regional banks or credit unions; and in some cases they can also attain financing from the equipment manufacturer, distributor or reseller via a vendor finance program – offering both loans and leases as financing options.

Innovative Financing Solutions (IFS) is proud to announce the launch of our fully redesigned website, www.innovativefinancingsolutions.net. This new website has been redesigned with our clients in mind – providing simple navigation, streamlined menus and useful information about our many products and services.

As community and regional banks continually strive to expand their lending capabilities, it has become increasingly important to understand the many guaranteed loan programs offered by the federal government. Understanding the scope of these programs can significantly impact a bank’s ability to expand beyond its traditional “footprint,” while adhering to strict bank underwriting and regulatory requirements.

One of the critical requirements the lender should follow relative to the proper closing of a Small Business Administration (SBA) loan, is ensuring the use of proceeds are properly documented in accordance with the lender’s credit approval and the SBA Loan Authorization (Authorization). Documentation supporting the use of proceeds is highly scrutinized during an SBA audit, and errors are one of the most common reasons for a “repair” during a guaranty purchase – which is closely reviewed in connection with early defaults. Taking measures to properly document the use of proceeds can minimize costly loan guarantee repairs or even full denial of the SBA guarantee.