November 27, 2018 is the deadline to submit support or other comments on proposed changes to the U.S. Small Business Administration (SBA) Express Loan Programs; Affiliation Programs published last week.
The proposed rule changes published September 28, 2018 will amend various regulations governing its business loan programs, including the SBA Express and Export Express Loan Programs and the Microloan and Development Company (504) loan programs.
Among other things, the proposed rule would:
- Incorporate into the regulations governing the 7(a) Loan Program the requirements specifically applicable to the SBA Express and Export Express Loan Programs;
- Add a new regulation to require certain owners of the small business Applicant to inject excess liquid assets into the business to reduce the amount of SBA-guaranteed funds that otherwise would be needed;
- Revise the regulations concerning allowable fees for the 7(a) Loan Program to limit the fees payable by the small business Applicant and to clarify what SBA considers reasonable with respect to such fees;
- Amend the regulation that explains the Agency’s policy governing SBA-guaranteed loans to qualified employee trusts to require that all such applications be processed under non-delegated procedures;
- Incorporate a change to implement SBA’s long-standing policy regarding the responsibility of a Lender for the contingent liabilities (including repairs and denials) for Lenders purchasing 7(a) loans from the Federal Deposit Insurance Corporation (FDIC) (as receiver, conservator, or other liquidator of a failed insured depository institution), whether such loans are acquired through a loan sale where SBA has not already purchased the guaranty or through a whole bank transfer;
- Revise the regulations governing the use of microloan grant funds by Microloan Intermediaries and extend the maximum maturity of a microloan;
- Modify the affiliation principles applicable to SBA’s financial assistance programs to include additional circumstances when a small business Applicant will be deemed to be affiliated with another entity for purposes of determining the small business Applicant’s size;
- Amend the regulation identifying when the size status of an Applicant for financial assistance is determined with respect to applications under the SBA Express and Export Express Loan Programs; and
- Make technical corrections to the regulation identifying prohibited fees in the 7(a) Loan Program and the regulation discussing the application for the Accredited Lenders Program (ALP) in the 504 Loan Program, as well as conforming amendments to two existing regulations for consistency with the proposed regulations governing SBA Express and Export Express, and a conforming amendment to one existing regulation for consistency with the proposed changes to the allowable fees that may be charged in connection with a 7(a) loan.
Comments must be received on or before November 27, 2018 through the Federal eRulemaking Portal, via mail or hand delivery. For more information or assistance, contact the author.
About the Author
Cynthia Marcotte Stamer is a Martindale-Hubble “AV-Preeminent (Top 1%) rated practicing attorney and management consultant, health industry public policy advocate, widely published author and lecturer, recognized for her nearly 30 years’ of work with business and government clients and their leaders as a LexisNexis® Martindale-Hubbell® “LEGAL LEADER™ and “Top Rated Lawyer,” in Health Care Law and Labor and Employment Law; a D Magazine “Best Lawyers In Dallas” in the fields of “Health Care,” “Labor & Employment,” “Tax: Erisa & Employee Benefits” and “Business and Commercial Law,” a Fellow in the American Bar Foundation, the Texas Bar Foundation and the American College of Employee Benefit Counsel.
Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization, Ms. Stamer serves as outside general counsel and special counsel advice, representation and other legal and operations services on a real-time “on demand,” special project and ongoing basis tailored to the needs of the client. hroughout her career with health care providers, health plans, health care clearinghouses, their business associates, employers and other plan sponsors, banks, insurers and other financial institutions, and others on trade secret confidentiality, privacy, data security and other risk management and compliance including design, establishment, documentation, implementation, audit and enforcement of policies, procedures, systems and safeguards, drafting and negotiation of business associate, chain of custody, confidentiality, and other contracting; risk assessments, audits and other risk prevention and mitigation; investigation, reporting, mitigation and resolution of known or suspected breaches, violations or other incidents; and defending investigations or other actions by plaintiffs, OCR, FTC, state attorneys’ general and other federal or state agencies, other business partners, patients and others; reporting known or suspected violations; commenting or obtaining other clarification of guidance and other regulatory affairs, training and enforcement, and a host of other related concerns.
Best recognized for her work on labor and employment, employee benefits and compensation, healthcare, insurance and risk management, technology and privacy and data security concerns, her experience encompasses work with management of a diverse array of clients and matters including domestic and multinational employers across many industries, health and other employee benefit plans, payroll, staffing, recruitment, technology, audit, training and coaching, consultin, and other outsourcing service providers, public and private health care providers, health and other insurers, banking and financial services, manufacturing, retail and other sales, hospitality, manufacturing, consulting, engineering bankruptcy, turnaround management restructuring and reengineering, and other change management, technology and other vendors, nonprofit, government and others domestically and internationally.
Author of a multitude of highly-regarded works and training programs on published by BNA, the ABA and other premier legal and other industry publishers, she also consults to and trains business and government and their leaders and speaks extensively about a wide range of general and special legal, business process and operations a and other concerns.
Beyond these involvements, Ms. Stamer also is active in the leadership of a broad range of other professional, charitable and civic organizations. Through these and other involvements, she provides hands on leadership, consulting and other support to develop and build solutions, build consensus, garner funding and other resources, manage compliance and other operations, and take other actions to identify promote tangible improvements in health care and other operations and policies.
For additional information about Ms. Stamer, see here or contact Ms. Stamer directly by e-mail here or by telephone at (469) 767-8872. If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information including your preferred e-mail by creating or updating your profile here. ©2018 Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press, Inc. All other rights reserved.