April 3, 2014
By Bob Coleman
Editor, Coleman Report
“Lending institutions are certainly looking to get back in the game,” says Mike Rozman at the Franchise Times event in Vegas last week.
Pens the Review-Journal
“Small-business loans are not flying out the door like they were in the go-go prerecession good times. But Mike Rozman came to Las Vegas last week ready to make some deals and connect lenders with small-business owners.
“Rozman, co-president and chief strategy officer of New York-based BoeFly, a Lending Tree-style online marketplace linking small businesses with 3,600 lenders, was looking to match lenders and restaurant brands.
“He attended a franchise finance and growth conference held at The Venetian, where chief development officers from quick-service and fast-casual restaurant brands such as Arby’s, Jersey Mike’s, Dairy Queen, Zaxby’s, Captain D’s and Checkers Drive-In offered perspectives on franchise issues and chatted with lenders and loan matchmakers such as Rozman.”
Bank of Hawaii Names Desiree Braga AVP
In 2012, Ms. Braga transferred to the Commercial Credit Products Group as a senior loan analyst and in 2013 was promoted to assistant vice president/commercial credit underwriter. Acting as a partner to the Commercial Banking officers in the credit decision-making process through financial evaluation and risk management, Ms. Braga strengthened her commercial credit skills and experience leading to this most recent promotion.
Ms. Braga is a summa cum laude graduate of the University of Guam with a bachelor’s degree in Finance/Economics and a member of the Guam Young Professionals, a committee of the Guam Chamber of Commerce.
Response to Scott Gabehart’s article 3-20-14 SBA, SOP and Business, Real Estate and Going Concern Appraisals Controversy or Opportunity?
by John T. Bechtold CPA/ABV
In reading Scott Gabehart’s article “SBA, SOP and Business, Real Estate and Going Concern Appraisals Controversy or Opportunity?” I take exception to Mr. Gabehart’s statement and conclusion that:
“After years of contemplation and research, I have determined that federal law (section 564.4 of Title 12) mandates the use of USPAP for any “federally related transaction”.”
While I disagree with Mr. Gabehart, he does raise a valid concern with respect to the requirement of whether SBA business appraisals should be USPAP compliant. While my ABV designation standards (SSVS) do not include a requirement to be USPAP compliant; for SBA appraisals, I have chosen to produce formal appraisals that are USPAP compliant.
Code of Federal Regulations Title 12 – Banks and Banking section § 564
Section § 564.1 (b) (1) discusses the Purpose and scope of section 564 and states that “Title XI provides protection for federal financial and public policy interests in real estate related transactions by requiring real estate appraisals used in connection with federally related transactions to be performed in writing, in accordance with uniform standards”.
Section § 564.1 (b) (2) (i) Identifies which real estate-related financial transactions require the services of an appraiser; (ii) Prescribes which categories of federally related transactions shall be appraised by a State certified appraiser and which by a State licensed appraiser; and (iii) Prescribes minimum standards for the performance of real estate appraisals in connection with federally related transactions.
The fact is that section 564 in it’s entirety (sections 564.1 to 564.8) cover only real estate transactions as stated in the scope section presented above. Additionally, there is no reference in section 564 to business valuation, business appraisals, going concern value, goodwill value, intangible value or any term relating to business appraisals. Also, real estate appraisers are regulated by the States and are State certified appraisers or State licensed appraisers as mentioned in section 564(b) (2) (ii) above. The business appraisal designations approved by the SBA SOP (ASA, ABV, CBA, CVA and AVA) are regulated by the governing bodies of those particular organizations and are not regulated by the States.
John T. Bechtold is a CPA who is Accredited in Business Valuation (ABV). Mr. Bechtold is the President and founder of Accredited Valuation Services, Inc. and a Board Member of the North Texas Association of Government Guaranteed Lenders (NTAGGL). Mr. Bechtold has performed over one thousand SBA and USPAP compliant business appraisals and has over 30 years experience in commercial finance and as a business appraiser.
Upcoming Small Business Lending Conferences
NADCO 2014 Annual Meeting, Colorado Springs, April 30 – May 3
NAGGL 2014 SBA Lending Technical Conference, Bonita Springs, May 6-8
Great Lakes Lenders Conference, Detroit, July 31 – August 1
Florida Small Business Lenders Conference, Orlando, September 17-19
NAGGL 2014 Annual Meeting, Huntington Beach October 28-30
Coleman’s 7th Annual SBA Secondary Market Forum, Washington D.C. December 2
Coleman’s 15th Annual Rural Lender’s Roundtable, Washington D.C. December 3