October 1, 1986, Portland Observer, Page 7
SBA and IRS Cooperate on Loan Collections
SBA is participating in a pilot program with The Internal Revenue Service
to collect selected severly delinquent loans by offsetting tax refunds This
is part of the increased emphasis on collection of government loans as out
lined in the Debt Collection Act of 1982 and the Deficit Reduction Act of
1984 Although the initial program will include only Disaster Home Loans,
it is expected to be expanded to other SBA programs in the near future
Under the plan, SBA will notify borrowers of its proposed action and allow
sufficient time for the borrower to correct delinquency or negotiate an
acceptable repayment plan. If the borrower fails to cooperate, the account
will be referred to the IRS and any tax refunds due will be offset and the
funds applied to the loan. The Agency may also consider other actions,
such as referral of the case to a private collection agency or reporting the
delinquency to credit bureaus Other agencies are also participating to
collect Guaranteed Student Loans and Veteran Administration Loans The
initial 60 days of this program resulted in $1,600,000 repayments nationally
with substantial additional collections expected
Purchase of SBA's Guaranty
If a borrower is 60 days or more delinquent in making payments on an
SBA guaranteed loan, the lender can request SBA to honor its guaranty.
This is commonly referred to as a "buy back" request Upon receipt of a
buy back request, the SBA will provide the lender with written confir
mation and instructions. Upon receipt and verification of the necessary
documentation, the amount of the principal and interest guaranteed by
SBA will be sent to the lender by wire transfer
The following items often cause problems in computing the amount of
the buy back:
All payments made by the borrower must first be applied to accrued
interest, with the balance applied to the principal
Generally accumulated interest in excess of 180 days will not be paid
by SBA
If the loan carries a variable rate of interest, it will be converted to a fixed
rate loan effective on the date the loan went into default even if loan
servicing is retained by the lender It is important that SBA be advised
of the date the loan went into default and the rate of interest in effect
on that date.
These items often prevent SBA from making timely approval and transfer
of buy back funds
Inadequate documentation for title and lien position in real estate
collateral to insure compliance with the SBA Loan Authorization A
Color Pictures For Your
Garden
A six week, Tuesday evening
class designed for gardeners who
want to create year round color
compositions in their garden land
scapes is being offered by the World
Forestry Center, Tuesdays, October
7 through November 11, 7:00 p.m.
to 9:00 p.m.
Join professional garden designer
Barbara Ashmun, as she shows
how to combine trees, shrubs, per
ennials, bulbs, ground covers and
annuals to create beautiful color
displays.
Ashmun has been a professional
garden designer for seven years.
Her planned sequence of bloom will
allow gardeners to get continual
color in their gardens, month by
month. Slides, lecture and discus
sion will inform and inspire both
inexperienced and advanced gar
deners.
Cost is $35 for World Forestry
Center members and $40 for others
To register, contact the Forestry
Center at 4033 S W Canyon Road,
Portland, Oregon 97221, (503 ) 228
1367
JANITORIAL
$60 00 PER HUNDRED PAID
mortgagee'» policy or tract book search will usually fullfill this require
ment.
Inadequate and or timely lien filings An original UCC 1 and a current
UCC lien search should be provided in every case
tor re n u iltn g letters from hom e' Send
self addressed, stamped envelope for
in to n n a lio n application Associates.
Cleaning Efficient,
Dependable
References
All areas
249 7960
When the w hite tape* on Venetian
blind* become toiled, brighten by
i ubbmg on w hite liquid »hoe polish
Box 95-B. Roselle. NJ 07203
NOW
Lack of moigage clause and/or lenders loss payable clause on hazard
insurance protecting pledged real and or personal property
2 YEAR SUBSCRIPTION
Value $74 88 — Save $52 00
with this coupon
You Pay Cost of Postage Only, $22 88
Loan A c tiv ity Fiscal Year 1986
The Chicago District Office and its Springfield Branch approved 782
loans totaling $131 5 million during the fiscal year ending September 30,
1985 These included 74 direct loans totaling $6 7 million Also included in
these figures were 27 Certified Development Company Debentures totaling
$5 8 million.
THE N A T IO N A LIS T VIEW
New National Weekly Newsletter
Starting October 1986
Of t_he^People ¿ For the People By_t_he_ People
Q u ality Lending
SBA continues to receive loan guaranty applications on behalf of busi
nesses that have little or no likelihood of generating the cash flow sufficient
to service the debt and other obligations Such loans do not meet SBA's
quality lending criteria and cannot be approved While SBA does have
upper end requirements for use of personal resources and credit else
where test, this Agency is not a lender of last resort for credits that do not
show reasonable assurance" of repayment
The determination of "reasonable assurance" is the product of a
thorough, professional credit analysis resulting in a judgement that the
business will be able to repay the loan in an orderly manner Many potential
and existing bank customers can meet SBA standards, yet due to the need
for extended maturities, an insufficient track record, and inadequate
collateral, they may not meet the bank s standards Such credits are ideal
candidates for an SBA guaranty. If, however, the applicant does not meet
the bank’s credit standards due to an unsatisfactory profit history, unsup
ported protections, or because of other significant adverse factors, it will
not meet SBA s quality lending criteria either
Enclosed is my check M O For $22 88 as full payment
Please pill me with first issue I have 30 days to pay
(check one)
TNV News Syndicate
P O Box 644 Adelphi Station
Brooklyn. N Y. 11238
In South Africa. There Is Only
One Solution
Your Support of The Freedom Fighters Will
Hasten the Day of Victory tot Democracy One
man - One vote Give as if the absence of Liberty
there diminishes all of us m truth it does
Enclosed •$ my check MO for $
••»
S T O P /R E A D
Send Contribution to
Jefferson High School Leadership Class invites all alumni to attend the
Thursday, October 9th Homecoming Football Game Jefferson 13 1), off to
its best start in years, will battle Cleveland (3 II at 7 00 pm on Hopkins Jen
kins Field (5210 N Kerby) The presence of all alumni will be acknowledged
at half time of the game
Democracy Vs A p ,e "’0id Committee
P O Bo» 644 Adeipn Station
Brooklyn Nev. York 11238
S po nsored by: The P 'St Con
dated Origin,! People-,
Service Inc » N Y Registered Not tor Profit Corp
What kind of car
do you want?
And what kind of terms?
W hip out a pencil and look at
the chart
Then you’ll really appreciate the
astonishing flexibility of consumer loans
at First Interstate Bank ol Oregon
You can arrange a loan w ith the ideal
m onthly payment to fit your budget
For a new car Lite-m odel used ta r KV
Boat Vacation Or home improvements
Suppose you want a new t ar. or
maybe a used ’85 or 86 car You d«x ide
your m onthly payments, il you want a
longer lim e to pay, or even if you want
to make a down payment .it all
The same flexibility applies to pre
mium used cars ol recent model years
and all other consumer loans (Certain
restrictions do apply And you must
qualify, ol course )
Convenient as that may be, there’s
mote Fust vou t ait qualify for a 1 '
discount off the normal interest rales
w ith automatic payments from your
First Interstate Bank i lux king ait oimt*
Second, with the right credit informa
lion, we i .in have your monev ready
the same day
Apply for y our loan today bv < ailing
or visiting Fust Interstate Bank \n«l
rememlier who d«x ides the terms
|k* S >W
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In te re s t ta ie K ) 75%
(IlM h e i r *
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■ o u n l w ith A u to
niA(M p a y m e n t» )
Blood Clinic
A public Hypertension (blood
pressure) Screening clinic is sche
duled Thursday, November 6, from
1:30 3 p.m., at the new king City
Retirement Center, 11777 SW
Queen Elizabeth, king City. The cli
nic will be staffed by registered nur
ses from Meridian Park Hospital,
Tualatin. The clinics are scheduled
the first Thursday of each month,
appointments are not necessary,
and there is no charge. For more in
formation, call 692 2656
|
conintxjlion lo the T'eedom f gm eis in tne South Atncan st'uSSie
(O' One man • One vote
Christmas Clearing Bureau
Briefing To Be Held
Multnomah County needs to help
more needy families this season.
In response to that need, a coalition
of Christmas Helping Agencies have
united to better serve the needy of
Multnomah County This Multno
mah County Christmas Clearing
Bureau will help all agencies avoid
duplication of services
An addi
tional goal of the Christmas Clear
ing Bureau is to enable agencies,
businesses and churches to work
together.
Volunteers of America of Oregon,
United Way, Snow Cap, St. Vin
cent de Paul Society, William Tern
pie House, Dist No. 10 Toy b Joy
Makers, The Salvation Army, Sun
shine Division, Adult and Family
Services, and Ecumenical Ministries
of Oregon have united to serve the
needy families of Multnomah Coun
ty this Christmas season
The Multnomah County Christ
mas Clearing Bureau will hold its
first briefing at St. Francis Dining
Hall. S.E. 11th b Pine, in the church
basement, on Thursday, October 2
at noon.
For more information, contact
Tim Hornbecker, (503 ) 235 8431.
J I
DEMOCRACY VS APARTHIED
LOAN HOTLINE
Call weekdays from
10 a.m. to 7 p.m.,
weekends from
noon to 5 p.m.
Portland: 225-4000
Outside Portland:
1-8OO-228-O454
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Bank
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