IDS Corp - Publications

	Publications				"504 Update" - Newsletter Archive

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Business Acquisition Financing Through SBA 504 & 7(a) Combinations
By: Thomas Wallace
It’s not uncommon for the price of a small business to exceed $2 million, creating a problem for a lender seeking to use the SBA 7(a) loan to meet a borrower’s needs. Combining the 7(a) with the SBA 504 loan solves this and other potential problems.
Posted: 2007-08-17

CDC Licenses and the Liquidation Process - A Tool to Help Lenders Differentiate CDCs
By: Thomas Wallace
In June 2006, a column titled The 504 Loan Process: Managing your CDC (p. 4) described the changes in the 504 world and provided some rough guidelines for 7(a) lenders to use in considering CDC licenses with whom to participate in the 504 program. Most of the guidelines offered involved the making and processing of loans. However, as the sub-prime market has been so incessantly reminding us of late, the extension of credit also involves the repayment of said credit.
Posted: 2007-08-16

Financing Alternatives to Factoring: Using the SBA’s Small Asset-Based CAPLine Program
By: Thomas Wallace and Gregg Lehrer
In his third article on SBA loans, the author discusses how factors provide a legitimate financial service and meet a need frequently faced by the small business community. However, factoring is not an all-purpose solution. The SMAB is offered for your consideration.
Posted: 2007-01-29

The Issue of Right of Redemption in SBA 504 Lending
By: Thomas Wallace and Gregg Lehrer
The impact on lending institutions, notably community banks1, of the exercise of the Right of Redemption, under the U.S. Small Business Administration’s (“SBA”) 504 Loan Program (the “SBA Loan Program”), can be profoundly detrimental to both, participating financial institutions and to the potential borrower under this SBA Loan Program.
Posted: 2007-01-29

The Management of Problem Loans Under SBA 7(a) Guarantees
By: Thomas Wallace
Policy Notice #5000-831, released by the SBA in October 2002, updates the honoring of guarantees under the 7(a) loan program. While this policy improves many aspects of the process, it may also make it more difficult to rely on the guarantee.
Posted: 2007-01-29

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