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Managing SBA Chapter 11 Bankruptcies The hard economic reality right now is that small business bankruptcies are on the rise. So let’s look at what you can do to prepare your SBA Lending team to protect the guaranty, control costs, and maintain SBA compliance while meeting evolving SBA lender requirements. As Benjamin Franklin said so long ago, an ounce of prevention is worth a pound of cure.

Inadequate documentation of equity injection is one of the most common issues cited in SBA loan reviews and guaranty purchase requests, often resulting in SBA compliance concerns for lenders. This is despite the fact that in many cases the injection actually did happen correctly. Why the problems? It’s usually about the audit trail, not about whether the Borrower had the money. If you can provide consistent documentation, starting at origination, according to SBA’s injection