![]() Lenders who engage in litigation involving SBA loans must adhere to the following requirements: ![]() If a payment default does not exist, but an event has occurred which would cause the loan to be placed in liquidation (i.e., bankruptcy filing, business shutdown, or foreclosure by a prior lienholder), a site visit must be done within 15 days of that event. Site visits must be performed within 60 days of an unremedied payment default or sooner if there are assets with significant value that could easily be moved or depleted. SBA requires all lenders to make site visits and prepare a detailed report containing an inventory of remaining assets and an assessment of their condition and value. Quarterly liquidation status reports must be submitted to SBA after purchase. These should be brief but comprehensive and we encourage you to email them to fax to 20. ![]() On a monthly basis, all SBA loans are reported on the SBA 1502 report. When the loan is transferred into liquidation status, please remember to change the status code on your monthly 1502 status report to “5” for in-liquidation status. Learn about SBA 1502: Status Reporting Codes. There is a dual reporting requirement on loans in liquidation
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