Featuring:

    • The Settlement Statement
    • Updated Equity Tracking
    • Improvements to Disbursement Manager

SPARK 6.9 Release Note Highlights

August 17, 2019

Our release notes cover what’s new, what’s changed, and the bugs that we’ve fixed since our last release of SPARK. As always, we welcome your feedback – support@lendwithspark.com.

 

SPARK 6.9 Release: What’s New

  • Settlement Statement: As a part of updating the Packaging and Closing stages of SPARK, we have introduced a new Settlement Statement feature that will effectively replace our existing Closing Statement. The functionality of the Settlement Statement allows users to take a more granular approach to disbursements to more accurately reflect where and how the loan funds will be distributed. You’ll be able to review and finalize fees paid outside of closing, due at closing, and financed from loan proceeds. Additionally, you can document how much remaining equity is required at closing. For construction loans (or other similar projects), you will now be able to review and finalize loan reserves that should be available for all post-closing disbursements. 
Overview of the Settlement Statement that replaces the Closing Statement
  • Escrowed Equity and Equity Tracking: In conjunction with the addition of the Settlement Statement, SPARK now has the ability to track remaining equity needed for a project. Also, if there is any remaining equity that has not been assigned to a use at the initial time of disbursement, the remaining equity can be put in an escrow account. The example equity injection below will show you how SPARK represents the equity held in escrow at the time of initial disbursement. 
SPARK now has the ability to show escrowed equity
  • Disbursement Manager: Tying back to the new Settlement Statement, the Disbursement Manager also got a face-lift! Now the Disbursement Manager can support disbursing to multiple budget categories from a single disbursement, and allocating those categories to multiple sources of funds. You may also add multiple supporting documents to a single disbursement. You will notice that the Disbursement Manager only has two tabs now and that the Project Budget tab is much more robust. The Project Budget can be displayed by source type, as well as by the overall budget. On the Disbursement Manager homepage, the disbursements are now broken up into Pending, Approved, and Completed for an easy to see breakdown of all the disbursements on the loan package. 
Disbursement Manager changes shown here
  • Use of Proceeds: There have been two notable changes to the Use of Proceeds in SPARK. Firstly, you can save time on each loan package by designating a default Use of Proceeds for all new loan packages in SPARK. For instance, if you know that Closing Costs and Working Capital will be part of every loan package created in SPARK, you can configure those two items to always appear on the Sources and Uses page. Secondly, SPARK now has the ability to split out Ineligible Use of Proceeds from the list of Eligible Use of Proceeds on the Funds by Party table. Those organizations doing SBA 504 lending will find this new feature to be particularly helpful in splitting out what is and is not eligible for those particular loans!
Ineligible use of proceeds example

SPARK 6.9 Release: What’s Changed

  • Use of Proceeds Required when Tracking Equity:  As part of the updated Equity Tracking page, lenders will be required to designate a use of proceeds when an equity injection is tracked. This change ties into the changes made to the Settlement Statement, which allows equity to be escrowed and later disbursed by the lender post-closing.
  • Navigation of Withdrawn/Declined Loan Packages:  You’ll now be able to review information on a package that has been withdrawn or declined without having to unlock the package.
  • Project Budget for SBA Loans: Prior to SPARK 6.9, the Project Budget that was created for a loan package upon submission to E-Tran was based on the SBA’s version of the Use of Proceeds. Moving forward, all SBA loan packages will have a Project Budget that reflects the actual use of proceeds as they’re defined in SPARK, so that when a Settlement Statement is prepared, you will be able to disburse the funds based on the standard SPARK use of proceeds. 
  • SBA Form 1050: SPARK will now automatically attach a page to SBA Form 1050 that lists all the settlement charges based on what is tracked in Project Accounting. Additionally, once you’ve created a Settlement Statement in SPARK, SPARK can fill out the breakdown of disbursements by Use of Proceeds on SBA Form 1050. You will still have the ability to manually edit the 1050 if needed as well. 

SPARK 6.9 Release: What’s Fixed

  • Authorized User Fixes: During SPARK version 6.8, a bug was created that caused SPARK not to track the date a user last logged in or when they changed their password. This was most apparent when looking at the Authorized Users page and seeing the “Token Expired” tag next to a user who had already successfully logged in. The issue was fixed during the first week after the release and the incorrect tag will no longer appear. 
  • Information Request Remaining in Draft Status: Also during SPARK 6.8, we fixed a bug that would prevent an Information Request from updating from the “Draft” status to the “In Progress” status. 
  • Franchise Eligibility: A bug was fixed that prevented the SBA Franchise Eligibility section from changing to a “Passing” state, even though all questions were answered properly.