We are grateful to Brian Rogers, Blue Maven Law LLC, for presenting “Legal Topics for Business Owners” at our February 8, 2022, membership meeting.
Brian has graciously shared the slides from his presentation.
Expansion through acquisition financing at Live Oak Bank
We are grateful and appreciative for the time spent discussing Mergers and Acquisition Lending at Live Oak Bank in weeks past. A leading advantage of expansion through acquisition is this: borrowers may not need much equity, broadening your pool of prospective buyers. We were pleased to see many of you expressing interest in the product.
This product helps target industry competitors as potential buyers for your listings. The strategic acquisition of a competitor might be your key to gaining market share, expanding product lines, cross-selling to customers, and increasing pricing power. Live Oak Bank’s Expansion through Acquisition financing helps make this happen.
If you’re not familiar with our expansion through acquisition financing or you’d like to learn more, let’s connect. In the meantime, check out our information on the benefits and qualifications for expansion through acquisition, and feel free to share it with your customers and prospective buyers.
Learn more about SBA Combination Financing Solutions
About Live Oak
Live Oak Bank is the #1 SBA lender in the country (by dollar volume). Live Oak specializes in acquisition financing across all industries nationwide and has Preferred Lender Partner (PLP) status with the SBA. This enables Live Oak customers to obtain SBA loans without being subject to the potentially lengthy SBA approval process necessary for lenders that are not PLP Lenders. Live Oak brings efficiency and excellence to the banking process, without branches, by using a focused approach to technology and innovation.
To learn more about The Live Oak Difference, please visit our website.
Best regards,
Paul Moreno, 214-289-2536, paul.moreno@liveoak.bank
Brian Hunt, 214-802-7411, brian.hunt@liveoak.bank
Updated SBA Form 159 and Instructions Regarding Submission Issued Nov 12
Monday, November 15, 2021
by John Vitale, MBA Commercial Relationship Manager Midland States Bank
SBA Procedural Notice 5000-821479, Issuance of Updated SBA Form 159 and Revised Procedures in SOP 50 10 6 for Submission of the Form (effective November 12, 2021), announces issuance of the revised SBA Form 159, Fee Disclosure and Compensation Agreement, and details the changes to the form. It also revises the procedures governing submission of the completed form to SBA by lenders. [SOP 50 10 6, Part 2, Section A, Chapter 5, Paragraph D.8.e. (p. 191) – for 7(a) Lenders – and Paragraph E.7.c.iv. (p. 201) for CDCs.] Lenders must begin using the new form immediately for new loan applications, but may continue to approve the previously approved version for applications already in process.
Per the notice, the substantive revisions to the 159 form include:
- Clarification that a separate Form 159 must be completed for each application when an Agent provides services to an Applicant in connection with multiple applications, and explanation of the new procedure for submitting completed forms and supporting documentation;
- Revisions to guidance regarding the itemization of services provided and the requirements for supporting documentation;
- Deletion of references to FTA/Colson Service mailbox since that email account is no longer active; and,
- New requirement that the lender use its 6-7 digit Location ID instead of its FIRS number to identify itself.
Effective immediately, the lender must submit all required executed SBA Forms 159, together with any required supporting documentation electronically to SBA’s Capital Access Financial System (CAFS) at https://caweb.sba.gov. After initial disbursement of the loan, the required form(s) and documentation must be uploaded into E-Tran Servicing in conjunction with the Lender’s monthly SBA Form 1502 report with submission required within two 1502 reporting cycles. There is no change to the requirement that 7(a) Lenders retain original signature versions of all 159 forms and all supporting documentation in their files for compliance review purposes. [Similar procedural changes are provided for forms and supporting documentation required in connection with 504 loans.] Please see the revised Form 159 and notice for full details.
Read MorePPP and Changes of Ownership Update 10/2/2020
by John Vitale, MBA
Commercial Relationship Manager
Midland States Bank
The SBA has extended its notice on required procedures when it comes to changes of ownership and outstanding PPP loans.
In essence, if someone plans to sell their business and has an outstanding PPP loan that hasn’t been forgiven, that loan does not transfer to the new owner. In most cases, funds covering the PPP loan will have to be set aside from the sale proceeds in an escrow account until forgiven.
If you are considering using an SBA loan to fund a business purchase, be sure to check out SBA’s updated notice:
SBA Procedural Notice: Paycheck Protection Program Loans and Changes of Ownership
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SBA portal for PPP forgiveness
The U.S. Small Business Administration is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less through participating lenders to apply for forgiveness directly through the SBA.
This new change will help rush relief to over 6.5 million smallest of small businesses nationally, which has been the priority of SBA Administrator Isabel Guzman since day one.
The new forgiveness platform will begin accepting applications from borrowers on August 4th, 2021.
Lenders are required to opt-in to this program through https://forgiveness.sba.gov/
The St Louis District Office will hold a Paycheck Protection Program Forgiveness Webinar for Borrowers on Wednesday August 4 at 9:00.
Link to join:
St Louis District Office
U.S. Small Business Administration
1222 Spruce Street, Suite 10.103
St Louis MO 63103
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