Small Business Lending

SBA Loans and Lending Group Serving Maryland, Virginia and Washington DC

The United States Small Business Administration and many other federal and local governmental agencies offer several loan programs for lenders to assist a small business when conventional commercial underwriting standards cannot be met.  The Commercial Lending team at Shulman Rogers has developed a proficiency in representing lenders in navigating the rigorous conditions placed on our clients by those agencies in approving, underwriting and closing loans under these programs.

Our representation begins at the planning stages where our lender clients discuss the best avenues for lending to a small business and the program options available to assist the small business, whether the funds are borrowed for start-up expenses, business acquisition, asset purchase, construction, working capital, or a combination of such uses. We can identify the applicable programs and put our clients in touch with governmental and private non-profit agencies that can lead the lender and small business borrower through the program application and approval process.

The two main SBA facilities are the SBA 7(a) as shown on the comparison chart attached below, guarantee program and the SBA 504 loan program. Each has unique characteristics and requirements, making attention to detail and intimate knowledge of the SBA’s Standard Operating Procedures are a necessity in closing the transactions. This is where Shulman Rogers excels.

We begin the closing process once the SBA Loan Authorization is issued. For SBA 7(a) guaranteed loans, the Authorization is converted into a comprehensive checklist that provides a roadmap to preparing the loan documents, obtaining the required due diligence, insurance, third-party consents, and eventually closing the loan and documenting the proper use of the funds. While the demands of the government are sometimes timing consuming, our extensive knowledge and network of contacts allow us to shorten the timeframes so that the small business can thrive, without being bogged down with unnecessary delays. We understand the value of efficiency and accuracy when balancing the needs of the small business and the requirements of the SBA. We have closed SBA 7(a) loans across the country, including loans to businesses in Maryland, the District of Columbia, Virginia, West Virginia, New Jersey, New York, North Carolina, Georgia, Florida, Tennessee, Texas, Colorado, and California. In closing the SBA 7(a) loans, we have dealt with almost every situation a lender may encounter, including landlord issues, business acquisition requirements, franchisor approvals, and construction due diligence.

In the SBA 504 loan program context, Shulman Rogers will represent the institutional lender in closing the transaction, and has developed strong relationships with all area Certified Development Corporations (CDCs), so that the closing process is seamless and we ensure all requirements of the CDC’s second trust loan are met prior to closing our lender clients’ first trust loans. When construction is involved, which forces our lender client to temporarily advance funds to be later refinanced by the CDC, our knowledge of the program helps anticipate issues that could arise after the initial closing but prior to the CDC refinance. Shulman Rogers extensive experience plays a critical role to ensure a smooth SBA transaction for all parties.