Litigation Plan Omissions that Jeopardize Expense Reimbursements
Filing a Timely Wrap-Up Report to Preserve the 7(a) Guaranty
Time: 2:00 p.m. Eastern
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Dramatically increase recovery of legal and CPC expenses, while remaining compliant with SBA regulations — BONUS! — improve your PARRiS score.
SOP 5057 addresses what lenders must do to recover expenses from SBA. This training will ensure your staff knows all the tips, as well as traps that a prudent lender must follow in the care of preservation of collateral.
Failure to properly prepare the liquidation plan can leave the lender holding the tab for tens of thousands of dollars of expenses that should have been covered by the SBA guaranty.
SBA wants their lending partners to do the heavy lifting in liquidation. And they are willing to approve prudent expenses.
In return, SBA simply wants to be notified of your the decision making process — with compliant documentation.
The stakes of not following prudent CPC rules aren’t limited to expense reimbursement. The entire SBA guaranty could be repaired or denied. The number one source of SBA 7(a) loan guaranty repairs is centered on collateral documentation and recovery failures that could cost the lender hundreds of thousands of dollars.
There will be no surprises at the end of the liquidation process that will lead to embarrassing losses on recoveries and lengthy delays in the guaranty purchase process.
Former SBA Deputy Director of the Little Rock Loan Center, Lance Sexton, will guide your staff through complex SBA requirements of routine and non-routine litigation requiring SBA’s prior approval.
- Is urgent action required due to extraordinary circumstances?
- Have workout options been explored?
- Is borrower litigation expected?
- Has a judgement for attorney fees and costs been requested?
- Is an SBA witness required?
- Is appointment of a Receiver being requested?
- Are attorney travel expenses being requested?
- Are there any environmental concerns?
- Are damages sought for alleged Lender misconduct?
- Are there novel, unsettled, or potentially precedent setting legal issues?
- Litigation where legal fees are estimated to exceed $10,000
- Litigation involving a loan where a Lender has an actual or potential conflict of interest with SBA
- Litigation involving a 7(a) loan where the Lender has made a separate loan to the same borrower which is not an SBA loan
- Importantly, Lance will also tell you precisely what SBA expects a prudent lender to do under emergency litigation circumstances
- How to prepare and submit an amended litigation plan as soon as notified of an emergency legal or care of preservation of collateral event
- What SBA considers a good faith effort to obtain its approval
- The emergency actions you may take without SBA’s approval
- And absolutely the emergency actions you may not take without SBA’s approval
- How to get SBA Approval of Legal Expenses — Know how much to budget that SBA will approve.
- Care and Preservation of Collateral 101 — Learn what SBA expects from a “prudent” lender.
- Documentation of Legal and CPC Expenses — Learn from former SBA Little Rock Loan Servicing Center Deputy Director, Lance Sexton, how SBA expects you to document all expenses.
- The allowable Recoverable Expenses — Ensure you are capturing all allowable liquidation expenses available for SBA reimbursement.
- The litigation plan — Know how and when to prepare the litigation plan.
- Getting the litigation plan approved by SBA — Insider tips by Lance Sexton to get your plan approved quickly, with enough flexibility to anticipate the unexpected.
- Changing the litigation plan — Know the information and format SBA wants, and what must do, when circumstances force changes in the litigation plan.
- How to remit SBA’s share of recoveries post purchase — Failure to remit recoveries post-purchase will negatively impact your PARRiS score and even jeopardize renewal of your PLP status.
- Filing the Wrap Up Report — Failure to file a wrap-up report will void your guaranty, negatively impact your PARRiS score and even jeopardize renewal of your PLP status.
Lance Sexton served as Deputy Director of the SBA Little Rock Commercial Loan Servicing Center managing the Servicing of SBA Loans, the liquidation of SBA Express Loans, and the Liquidation of SBA 504 loans in a 24 state area. Lance has 30 years of experience in the origination, servicing, and liquidation of SBA Loans, ten years of experience directly managing portfolios of SBA loans that are both performing and nonperforming, and six years of experience as a small business owner.
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the Publisher of the Coleman Report, a trade newsletter and website for SBA and small business lenders. He produces online training videos and webinars for small business lenders to teach them to make less risky loans to Main Street.
Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
We will automatically forward a certificate of participation for those who are registered to attend the webinar via GoToWebinar.
If you have purchased the unlimited site license and would like certificates for all who attend simply forward their names and email addresses to email@example.com. She will email the certificates to all attendees.
Questions are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second way is to send an email to firstname.lastname@example.org. Also, feel free to ask pre-webinar questions.
About Coleman Webinars
Coleman is the largest producer of small business banking video webinars and online training for the banking industry.
Our faculty are professional instructors are the absolute experts in their fields.
Why a Coleman Training Webinar?
It’s very cost effective. No airfare, no hotels. Just cram as many people as you wish into your conference room and turn on the computer. You have several options to view the program. You may watch on screen, or listen in on your phone.
You can choose to have any many connections nationwide as you wish when you purchase unlimited access for only $589.
A great benefit of the program is that you may have your questions answered by the faculty. All of our webinars are recorded. Buyers of the unlimited site license option will receive a DVD recording of the event to share with anyone you wish.
A transcript of the program is also provided to purchasers of the unlimited site license.
How it Works
We use GoToWebinar for the webinar platform. You will receive a link that will direct you to an Internet site to view the presentation. If you would like to test this process to make sure you will be able to access the link through your system’s firewall, just send an email to email@example.com, and he will schedule a test run.
There are two ways to access the webinar. The first is to simply click on the link we will provide when you register.
If you have a firewall issue, or you can’t get the GoToWebinar link to work, don’t panic!
The second way to access the webinar is directly from the GoToWebinar website. You will simply need to input the webinar ID and access code. These will also be provided when you register, and again the day before the webinar when we distribute the handouts.
Note we will open the webinar for attendees to join at 12:00pm ET. This will give each attendee two full hours before the webinar begins to troubleshoot any technical issues. Call (818) 790-4591 if you need assistance.
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You will see our speakers live through a video feed. You may customize the size of the speaker and PowerPoint presentations by clicking on the webcam button on the GoToWebinar dashboard. You may position the speakers at the top, bottom, right or left hand sides. You may also choose to eliminate the video stream and just view the PowerPoint.
Telephone Only Option
You may also choose to listen to the program on your telephone. The phone number will be provided with the handouts.
You will receive the PDF handout via email the day before the event. These may be distributed to all of your attendees.
If something comes up and you miss any part of the webinar, or there are technical issues such as a power failure, Internet dropout, fire alarm drills, actual fires or, earthquake (yes that has happened!) simply email firstname.lastname@example.org and he will send you a link you may watch all or part of the webinar at your leisure. There is no charge for this service.
The Fine Print
1) The single user registration fee of $389 is based on location not attendance. You may have as many people in one location attend. You may distribute the materials to anybody in your company.
2) For only $200 more ($589), you may invite as many people from your institution from as many locations as you wish. (You also get the reply link and transcript!) We will forward you a link that allows you to sign up as many people as you wish.
3) Substitutions are allowed at no charge.
4) Cancellations receive a 100% credit for any Coleman product.
5) As with all our products, we offer a 100% money back satisfaction guaranty — no questions asked.
1) Previous customers need only to send an email to email@example.com with “Register Litigation Plan Webinar” in the Subject Line. We will do all the paperwork and charge your credit card on file, or send you a PayPal request.
2) Call Joseph Coleman at Customer Service at 818-790-4591 extension 1
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