May 24 (Source: The Miami Herald By Ina Paiva Cordle) - Garsh Lending, a Miami-based lender, has agreed to pay $300,000 to settle allegations involving a Small Business Administration loan, the Justice Department said Monday.The allegations relate to the SBA’s 504 loan program, which offers small businesses long-term, fixed-rate financing to acquire fixed assets for expansion or modernization. A portion of the financing for 504 projects comes from independent third party lenders.
Garsh, acting as a third party lender, loaned First American Wealth Management money for a mortgage in July 2007 and agreed to provide the SBA written notice of default on the loan. The United States alleges that the borrower missed payments on its loan with Garsh, yet Garsh failed to provide the required notice of default. In fact, the borrower never made any payments on the 504 loan, which was backed by an SBA guarantee, the government said.
Source: The Miami Herald By Ina Paiva Cordle
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A service of YellowBrix, Inc. Publication date: 2011-05-24