CGS Financial Services Serves Clients Nationwide
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. SBA guarantees up to 75% of the individual loans up to five million dollars in certain circumstances allowing lenders to spread their portfolio risk significantly.
Through SBA’s Small Business Investment Company (SBIC) program, SBA invests up to $225 million into each private equity fund “licensed” as an SBIC. Legislation is pending to authorize an investment of up to $350 million per fund. Further the Volcker Rule, that prevents banking from participating in private equity, has an SBIC exclusion, allowing Lenders to own up to 25% of an SBIC without affiliation issues.
At CGS Financial Services, LLC, we work with financial institutions and investors in all aspects of their participation in these extremely attractive programs in maximizing their return and minimizing risk.
We provide business and legal advice on complex issues and assist with 7(a) banking loan management and SBIC private equity portfolio management.
We assist lenders and private equity firms in determining eligibility of prospective portfolio companies and structure loans and investments according to SBA requirements that also make solid business sense.
We work with financial institutions from deal initiation through closing to ensure that all requirements are met and closing is completed smoothly and without complications.
We facilitate combinations of 7(a) guaranteed loans and SBIC investments through our extensive contacts in both the U.S. banking industry and private equity community.
We support “servicing” by providing oversight services “through the life” by monitoring compliance with loan and investment terms and reporting to our clients.
When problems arise and loan recipients do not meet their obligations, we are skilled in complying with all business aspects, including SBA’s requirements, for liquidation and litigation. We know when to seek SBA authorization for liquidation or litigation plans and at all times comply with all the complicated and extensive SBA rules and regulations.
We provide our services equally for participants in SBA’s 7(a) and SBIC programs, as well as non-participants; that is we provide legal and financial services for lenders with their non guaranteed loan portfolios and non SBIC private equity firms with their investment portfolios.
In addition, we have experience in facilitating the private investment in our financial institution clients by institutional investors. These include pension funds, high net worth individuals and family funds, and other financial institutions, such as “funds of funds.”
Where the investments are into institutions that participate with SBA and depend on the 7(a) and SBIC programs to spread risk and maximize returns, our knowledge of SBA is essential. Our facilitation is a critical factor in providing the comfort needed before a private institutional investor becomes a partner with a Federal Agency. We can provide that comfort as our firm has 25 years of experience in SBA business loan and private equity investments as in-house counsel at SBA and as private counsel.
Our success as a firm is due to our ability to identify legal, financial and regulatory problems and offer concrete, practical business solutions.
Contact us today for a consultation – (202) 441-1181