This letter addresses serious concerns regarding the financial management of a $1,475,000 SBA 7(a) guaranteed loan (Loan #89463350-04, SBA Loan Name: A World So Special Inc.) issued to A World So Special, Inc. by United Bank of Philadelphia. The loan, intended for an arts development project in Chester (Act 47 City), Pennsylvania, has been the subject of repeated inquiries since 2016, prompting this request for legislative review.

The guarantor, Mr. Olalekan Solanke, reports a persistent lack of documentation from United Bank substantiating the disbursement and use of loan funds. Despite numerous requests, the bank's responses, citing a forbearance agreement and ongoing litigation, lack verifiable supporting evidence such as cancelled checks or electronic fund transfer records. This lack of transparency, coupled with the subsequent foreclosure of the collateral—a 2.06-acre waterfront property that also received a $1 million Pennsylvania RACP Award—raises significant concerns about potential misallocation of funds.

Mr. Solanke alleges that United Bank employed duress and coercive tactics to secure the forbearance agreement without providing transparent evidence of fund utilization. This is further complicated by reports suggesting the bank's precarious financial standing prior to the alleged loan default.

Given these circumstances, we joined Mr. Solanke to urge your office to collaborate with other lawmakers to initiate an audit of this loan by the appropriate monitoring agencies. Additionally, we joined Mr. Solanke to request a ban of the Confession of Judgment (COJ) clause within the loan documents. The consistent use of COJs in Pennsylvania, and their potential to disproportionately favor lenders even in cases of lender misconduct, warrants legislative attention.

We believe that both state and federal legislation restricting the use of COJs in commercial, and particularly government-guaranteed loans such as SBA loans, is necessary. COJs essentially allow lenders to seize assets without significant recourse, even when the lender is at fault. This one-sided agreement is unduly advantageous to lenders and requires reform.

Addressing these two issues would not only provide recourse for Mr. Solanke but would also significantly benefit Pennsylvania and small business owners nationwide by creating a more equitable lending environment. We would appreciate your immediate consideration of these matters and support for legislative action to reform the use of COJs in government-backed (guaranteed) loans.

Please share this petition with your friends and family—every signature brings us one step closer to making a meeting our goal.

Thank you

Olalekan Solanke