Documenting Equity Injection Right Part 1
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
Lori N. McCausland
1 day ago