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Mug Shot Monday: Exhibit A Why you should get IRS Forms 4506 and Follow SBA Equity Documentation Standards

June 16, 2014

By Bob Coleman
Editor, Coleman Report

4506IRSFormSBA frequently admonishes lenders in its SOPs that SBA loans should be approved, serviced and liquidated in the same manner as conventional loans.

Perhaps lenders should approve conventional loans using SBA standards.

Specifically, requiring IRS form 4506 on tax returns and using SBA equity injection documentation standards for conventional loans.

A Tennessee, Quality Inn owner had been indicted for creating fictitious personal and business tax returns, and photoshoping fake equity injection docs.

“Patel then further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns to obtain an increase in the amount of the loan and to obtain a six-month interest only payment period.”

Mr. Patel faces the obligatory 30 years in prison and $1 million fine.

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