Newly Released SOP 50 10 5(K)
Click above image to view the new SBA SOP The U.S. Small Business Administration (SBA) has released the much anticipated update to the Lender and Development Company Loan Programs. The SOP 50 10 5(K) will become effective April 1, 2019, and will apply to all applications received by SBA on or after that date. Participants must continue to use SOP 50 10 5(J) for SBA 7(a) and 504 applications submitted through March 31, 2019. If you have questions about the SOP 50 10 5(K) notice , please do not hesitate to contact Your SBA Legal Department at Jellum Law
Continue ReadingTable of Experts: Franchising Panel Discussion
The Minneapolis/St. Paul Business Journal held a panel discussion recently where Nick Jellum served as moderator. Read the full article here.
Continue ReadingJellum becomes NAGGL Sustaining Member
Jellum has increased its membership with NAGGL to a Sustaining Membership – click here for more information.
Continue ReadingJellum moderates SBA panel discussion
Nick Jellum was selected as a moderator for Minneapolis/St. Paul Business Journal’s panel discussion on SBA-lending. The article, Table of Experts – Exploring the SBA Lending Landscape, is featured in the Business Journal’s May 22, 2015 edition.
Continue Reading2014 Legislative Session Update
This year the Minnesota legislature made some significant changes to laws which affect banking and lending. The following is a brief summary of some noteworthy changes adopted by the legislature during its most recent session: 1. Minnesota Public Benefit Corporation Act Effective January 1, 2015, new corporations can elect Public Benefit Corporation status upon initial incorporation and existing corporations will have the option to convert to Public Benefit Corporation status. Public Benefit Corporations, often referred to as B-corps, are a hybrid type of entity that fits somewhere between nonprofit and for-profit business entities. Minnesota’s B-corp legislation allows for two types of Public Benefit Corporations to be formed: General Benefit Corporations (“GBCs”) and Specific Benefit Corporations (“SBCs”). GBCs work toward a general positive impact while SBCs work toward a specific, self-defined cause. Directors and officers of both GBCs and SBCs have a fiduciary duty to not only maximize shareholder gain, but also to make decisions based on what will benefit the public in a way that aligns with their mission. What public benefit a Public Benefit Corporation has chosen to pursue could have a drastic effect on the entity’s future profitability and, for this reason, lenders considering loans to borrowing entities of this type will be wise to consider and understand the public benefit chosen when making lending decisions. 2. Minnesota Revised Uniform Limited Liability Company Act Effective August 15, 2015, all newly formed limited liability companies (“LLCs”) will be governed by the Minnesota Revised Uniform Limited Liability Company Act (the “Revised Act”). Additionally, from the initial effective date until January 1, 2018, LLCs that were formed in compliance with the prior law may elect to be governed by the Revised Act. One of the larger changes made by the Revised Act is that LLCs no longer must exclusively be managed by Managers. Under the Revised Act, they may also be managed by Members, or the Board of Governors. This distinction will be particularly important for lenders to keep in mind when determining who has the authority to enter into agreements on behalf of the LLC. As the Revised Act provides greater flexibility in LLC management options, lenders must be sure to pay extra close attention to the type of management chosen, and documented in an LLC’s governing documents, in order to determine the appropriate party to execute documents on behalf of the LLC. 3. Minnesota Foreclosure Mediation A bill was introduced this past legislative session which sought to impose new mediation requirements into the foreclosure process and afford foreclosure mediators certain powers and authority. This bill received strong pushback from multiple sources, including the Independent Community Bankers of Minnesota legislative committee, of which Nicholas Jellum of this office is a member, and ultimately did not pass. However, it is very likely that this bill will be introduced in the next legislative session. As such, lenders who routinely conduct residential mortgage foreclosures would be wise to keep this area of proposed legislation on their radars. 4. Extension of Small Servicer Exemption under Minn. Stat. § 582.043 Minn. Stat. § 582.043 was originally enacted following the 2013 legislative session and requires lenders […]
Continue ReadingNick Jellum attending SBA Lending Technical Conference
Nick Jellum is attending the SBA Lending Technical Conference in Bonita Springs, Florida from May 6-8. For more information on the conference visit http://www.naggl.org or contact Nick for updates at Nick@JellumLaw.com.
Continue ReadingJanuary Spotlight: Kyle Johnson & Wendy Sloneker
Kyle Johnson works primarily with financial institutions on commercial loan documentation and closed a total of $6.3 million in loans for the month of December. Wendy Sloneker, who has been at Jellum Law for a little over a year, focuses her work on loan workouts.
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