Chicago, Illinois (PRWEB) September 28, 2011
Clopton Capital is a provider of SBA loans and is located in Chicago, IL. They primarily focus on commercial mortgages, SBA loans and niche financing mechanisms such as gas station loans and commercial bridge loans. The founder of Clopton Capital is Jake Clopton and this press release is part of Clopton Capital's consistent effort to remain involved with the public, namely their future clients. Clopton Capital can be contacted at CloptonCapital.com.
Clopton Capital is issuing this press release to highlight and explain some of the recent changes to the Small Business Administration's standard operating procedures.
The first change which Clopton Capital found to be significant was that 7a loan rates can now be modified from variable to fixed or fixed to variable so long as the interest rate never exceeds the mandated maximum interest rate. The base rate and the spread over the base rate can also be modified. This change has been made by the Small Business Administration as an attempt to make the loans more lucrative and therefore more advantageous to issue on current and future businesses.
There has also been a change made to OREO's, otherwise known as other real estate owned transactions. SBA 7a loan lenders are now permitted to collect a selling price that exceeds the mortgage balance plus care and preservation expenses or the liquidation value, whichever is the lesser, so long as the SBA guaranty is decreased as well.
Prospective SBA loan borrowers are also going to be ineligible for SBA loans if they have delinquent tax debt with the federal government. This is the exact quote from the Small Business Administration's statement, “Included the fact that, under the Debt Collection Improvement Act, any business that is currently delinquent on federal government debt (excluding federal taxes) or which has an owner, guarantor, or affiliate that is currently delinquent on federal government debt is ineligible for an SBA guaranteed loan. This had previously been inadvertently omitted from the SOP.”
An attempt to eliminate the transactional cost of excessive paperwork is also being attempted by the Small Business Administration with their new rule which makes using the eTran system mandatory. “It seems completely logical that SBA loan applications should be electronic in this day and age. The transactional cost of dealing with that much paper and shipping is unacceptable,” said Jake Clopton, the founder of Clopton Capital.
Clopton Capital believes these changes in SBA loan standard operating procedures will neither affect them in any significant positive or negative ways.
Clopton Capital can be contacted at their website CloptonCapital.com or at 866.647.1650 during regular business hours central time. Their website contains more specific information about their working capital products. Their website dedicated to SBA loans, the 7a and SBA 504 loan is SBABusinessLoanSource.com.
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