October 1, 1986, Portland Observer, Page 7
SBA and IRS Cooperate on Loan Collections
SBA 1« participating in a pitot program with The Internal Revenue Service
to collect selected severty 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.
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
Cleaning Efficient,
Dependable
References
All areas
249 7960
for reloading letters trom home' Send
sell addressed, stamped envelope for
information/ application Associates.
Box 95-B. Roselle. NJ 07203
mortgagee's 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
I
Lack of morgage clause and/or lenders toss payable clause on hazard
insurance protecting pledged real and or personal property
NOW
Loan Activity 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,
^985 These included 74 direct loans totaling $6 7 million. Also included in
these figures were 27 Certified Development Company Debentures totaling
»5 8 million.
W hen th « w h ite tapes on V e n e tia n
b lin d * b e co m e soiled, b rig h te n by
rubbing on w h ite liquid shoe polish
a
2 YEAR SUBSCRIPTION
Value $74 88 — Save $52.00
with this coupon
You Pay Cost of Postage Only. $22 88
I
I
I
I
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THE N A T IO N A LIS T VIEW
Of
Quality Lending
Purchase o f 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
JANITORIAL
$60 00 PER HUNDRED PAID
New National Weekly Newsletter
Starting October 1986
FePPie- ‘ .f_0_rJhe ?eople_- By_the_ People
Enclosed is my check, M 0 For $22 88 as full payment
Please Dill me with lust ssue I have 30 days lo pay
(check one)
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
TNV News Syndicate
P .0. Box 644 Adelphi Station
Brooklyn, N Y. 11238
D E M O C R A C Y V S A P A R T H IE D
In South Africa There Is Only
One Solution
Your Support of The Freedom Figniers Will
Hasten the Day of Victory tor Democracy One
man - One vote Give as d the absence of Liberty
there diminishes ail ol us m truth t does
Enclosed is my crecv M 0 for S
as my
conlnbulion to the F'eeoom f-g n ie is in the Soulh African S lru g j e
toi One man • One vote
S T O P /R E A D
Send C on ln b u lio n lo
r
Democracy Vs Apartheid Commiltee
P 0 Bo« 644 Aqeiohi Station
Brooklyn New York 11238
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 13 1) at 7:00 pm on Hopkins Jen
kins Field 15210 N Kerby) The presence of all alumni will be acknowledged
at half time of the game
Sponsored by: The F i's l O '
lated Ooflina Peoples
Service Inc A N Y Registered Not lor Profit Corp
What kind of car
do you want?
And what kind of terms?
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, (5031 228
1367.
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
W hip oul a pencil and look al
the chart
Then you'll really appreciate the
astonishing fle xib ility of consumer loans
.it First Interstate Bank of Oregon
You can arrange a loan with the ideal
m onthly payment to fit your budget
For a new car Lite-im xlel used car BY
Boat Vacation Or home improvements
Suppose you want a new car, or
more First, you can qualify lor a 1 %
discount off the normal interest rales
w ith automatic payments from your
First Interstate Bank ( het king at count*
Setond. w ith the right credit inform a
tion, we can have your money ready
the same day
Apply for your loan Itxlay by t ailing
or visiting First Interstate Bank And
rememtier who tlet ides the terms
maybe a used '85 or '86 car You decide
your m onthly payments, if you want a
longer tune to pay, or even if von want
to make a down payment at all
The same flexibility applies to pre
m ium iisr-d cars of recent model years
and all other consumer loans (Certain
restm tions do apply And you must
qualify, of course )
Convenient as tfi.it may be. there s
Examples of Typical Loans1
Payment Terms 60 Months
New Car
Selling
Price
• ( fc.^-s hd H,< ImU
A<fc«fM«*bfN- VISA*
Masteff 4»tf* Mtulritf
Usati» real rM alr loan1
ain, I m »» iih *»» loan»
20",> Down
10% Down
0% Down
Annual
Equal
Monihh Pert elitage Am ount
Borrowed
Rale-
Payments
Equal
Annual
Monthly
Peri eiltagc
Borrowed
Annual
Equal
Monthh Percentage Amount
Payments
Rate-
Borrowed
Payments
Kale
$ 7,000
$ 7.(XX)
$151.32
11.06%
$ 6,300
$136 18
I I 10%
$ 5,600
$121 05
l i l t
$10,(MX)
$10,(XX)
$216.17
10 97%
$ 9,(XX)
$194 55
10 99%
$ 8.(MX)
$172 93
11 02%
$12,600
$272 37
10 92%
$11.200
$242 11
10 91%
Amount
♦
1 1
$14,(XX)
$18.000
$14,(XX)
$18.(XX)
$302 63
$389 10
10 90%
10 87%
$16.200
$350 19
10 88%
$14,400
$311 28
10 9 0 %
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Blood Clinic
A public Hypertension (blood
pressure) Screening clinic is ache
duled Thursday, November 6, from
1:30 3 p m., at the new King City
Retirement Center, 11777 SW
Queen Elizabeth, King City. The cli
nic will be staffed by registered nur
ses from Meridian Park Hospital.
Tualatin The clinics are scheduled
the first Thursday of each month,
appointments are not necessary,
and there is no charge. For more in
formation, call 692 2666
LOAN HOTLINE
Call weekdays from
10 a m. to 7 p.m.,
weekends from
noon to 5 p.m.
Portland 225-4000
Outside Portland:
1-800-228-0454
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1 Firs#
/rrterstafe
Bank
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$ , F •
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