At CGS Financial Services, LLC, we provide a range of legal, financial and regulatory services to bank and non-bank lenders as well as to alternative investment financial intermediaries and their institutional investors.
We work with financial institutions in order to effectuate compliance with Federal rules and regulations, most notably the U.S. Small Business Administration's (SBA) Guaranteed Loan Program and Small Business Investment Company program.Through SBA's Guaranteed Loan Program, known as the "7(a) Program, " SBA guarantees over $40 billion of business loans issued by lenders.
We work with financial institutions in order to effectuate compliance with Federal rules and regulations, most notably the U.S. Small Business Administration's (SBA) Guaranteed Loan Program and Small Business Investment Company program.Through SBA's Guaranteed Loan Program, known as the "7(a) Program, " SBA guarantees over $40 billion of business loans issued by lenders.
Services
There are hundreds of pages of SBA rules and regulations that must be carefully complied with. At CGS Financial Services, we keep up to date on those rules and all changes that occur/arise. We concentrate on providing advice to bank and nonbank lenders on the requirements as well as on complex legal and factual issues related.
There are hundreds of pages of SBA rules and regulations that must be carefully complied with. At CGS Financial Services, we keep up to date on those rules and all changes that occur/arise. We conduct escalated legal review, issue guidance and provide final opinions in writing.
We review in detail loan files submitted by both the secondary market and directly from participating banks in order to determine when SBA is legally obligated to honor its guaranty.In order to obtain a section 7(a) government guaranteed loan, the business must be for profit, domiciled in the U.S. and pay U.S. taxes.
We review in detail loan files submitted by both the secondary market and directly from participating banks in order to determine when SBA is legally obligated to honor its guaranty.In order to obtain a section 7(a) government guaranteed loan, the business must be for profit, domiciled in the U.S. and pay U.S. taxes.
As a lender, you are aware that the relationship is between you and the SBA, not the loan applicant and the SBA. The government guarantee for the loan is not to give the borrower a cushion for default, but to be an incentive to the lender to make a loan it would otherwise decline. In fact, in order for applicants to be eligible for an SBA loan, they must not be able to get credit from any other source.
The SBA expects lenders to be just as diligent in liquidation and litigation for defaulted SBA loans as they would be for loans without a governmental guarantee. Some loans require prior approval from the SBA before they can be placed in liquidation status. We work with you to determine if that is required.
Due diligence on prospective fund managers and negotiation of compensation with prospective managers. Our experience is with growing low to medium technology manufacturing companies in the growth stage. We have strong skills in protecting the downside as we began private equity careers working with investments in distressed portfolio companies.
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