Understanding Loan Compliance & Why it Matters For Your Business
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by Lashay Smith February 6, 2026
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As a business owner, getting approved for your first business loan is an exciting milestone. It’s a sign that your hard work is paying off and gets you one step closer to your long-term goals. But once the loan is disbursed, the real work begins. This is where loan compliance plays a critical role in keeping your loan on track and your business financially healthy.
At PIDC, we have a team of individuals who play a key role in protecting the health of our loan portfolio. This is important for business owners because it ensures your loans are properly managed, reduces the risk of unexpected problems, and keeps your business on track for growth.
Our team monitors loan performance by collecting and analyzing financial and operational data, identifying potential risks early, and ensuring adherence to PIDC’s internal credit policies. In addition, the team verifies compliance with external regulatory guidelines, including those set by the Office of the Comptroller of the Currency (OCC), an independent bureau of the U.S. Department of the Treasury. The OCC ensures that banks are operating in a safe and sound manner, providing fair access to financial services, treating customers fairly, and complying with applicable laws and regulations.
We sat down with our Senior Vice President of Portfolio Management Sandra Thomas to learn about the importance of loan compliance and how you can avoid the things that get you in trouble with your loan.
What is loan compliance?
Loan compliance is following the rules outlined in your loan documents, which are set by a financial institution or lender. These requirements are set to help you stay organized, make payments on time, and use your loan funds responsibly. Loan compliance also involves tracking your financial performance and submitting required documentation as outlined in your agreement.
Why is loan compliance important?
As you receive a loan for your business, being in compliance and following the terms of the agreement from your financial lender in your loan documents is your main goal as a recipient. This can help business owners manage risks and maintain a positive relationship with their lender. Vice President of Portfolio Management Sandra Thomas says as a business owner, strong loan compliance supports long-term financial health and growth.
“Compliance with a loan agreement helps a business understand its financial stability while ensuring it meets its repayment obligations,” said Thomas. “Staying compliant is crucial to avoiding default, which can trigger serious consequences such as accelerated loan payments, increased interest rates, and limited access to future financing.”
How to avoid falling out of compliance
Staying on top of your business loan requirements is essential, but many businesses accidentally fall out of compliance. Common ways this happens include missing loan payments, failing to submit financial or other required documents on time, or not getting pre-approvals or notifying lenders of major changes when required.
“If you start to fall behind on payments or experience a significant change, it’s important to communicate openly with your lender. Let them know about any issues that might cause a missed payment or delayed documentation, and explain the reasons clearly,” said Thomas.
Common Compliance Mistakes
Missing Loan Payments
Failing to Submit Required Documents
Not Getting Pre-approvals
Notifying Lenders of Major Changes
Learn more at our upcoming Business Builder Workshop
As a business owner, keeping track of your financing and managing the repayment of a loan can be overwhelming, but PIDC has you covered! Join us on March 19 to learn more about loan compliance and portfolio management. We will discuss how to help business owners better understand their loan requirements, avoid common pitfalls, and build strong relationships with their lenders.
Meet the Team
Sandra Thomas
VP, Portfolio Management
Click here to meet PIDC’s Vice President of Portfolio Management Sandra Thomas! Learn how her work supports PIDC’s mission to strengthen Philadelphia’s business community and drive impactful development citywide.
Learn how to stay compliant with ease!
Register today to learn more on how you can stay in compliance for your current or next business loan!
PIDC (“PIDC”, “we”, “our” or “us”) respects the privacy of its users (“User(s)” or “you”). This Privacy Policy is to inform you what information we collect when you visit our website(s) at https://navyyard.org/ and any additional websites owned and operated by the Philadelphia Authority for Industrial Development (“PAID”) at the PIDC (the “Site”) and when you use our downloadable mobile application (the “App”) and related public transportation information and additional services (collectively referred to as the “Service”). Capitalized terms which are not defined herein, shall have the meaning ascribed to them in our Terms of Use available at https://navyyard.org/ which this Privacy Policy is incorporated thereto by reference (together, the “Terms”).
YOU MAY ACCESS AND/OR USE THE SERVICE ONLY IF YOU FULLY AGREE TO THIS PRIVACY POLICY – AND BY ACCEPTING THIS PRIVACY POLICY, ACCESSING AND/OR USING THE SERVICE, YOU SIGNIFY AND AFFIRM YOUR INFORMED CONSENT TO THE COLLECTION AND PROCESSING OF YOUR PERSONAL INFORMATION AS DEFINED AND EXPLAINED BELOW. IF YOU DISAGREE TO ANY TERM PROVIDED HEREIN, YOU MAY NOT USE THE SERVICE.
Please note: you are not obligated by law to provide us with any information. You hereby acknowledge, warrant and agree that any information you do provide us is provided of your own free will and consent, for the purposes and uses described herein.
INFORMATION WE MAY COLLECT
We may collect two types of data and information from our Users. The first type of information is nonidentifiable and anonymous information (“Non-Personal Information”). We are not aware of the identity of the User from which we have collected only the Non-Personal Information. Non-Personal Information which is being gathered consists of technical information and behavioral data regarding the activity of the User on the Service, operation system and browser, type of mobile device, and operating system version and settings, User’s screen resolution, duration of usage of the Service, User’s ‘clickstream’ on the Site, keyboard language, etc.
The second type of information is individually identifiable information (“Personal Information”). This information may, in itself or taken together with additional information available to us, identify an individual, or may be of a private and/or sensitive nature. Personal Information we collect includes: username, email address, phone number, your geo-location, your travel habits (such as routes, times of travel from one destination to another), your home address, office address or other favorite destinations, public transportation lines, stations and/or routes you may have saved or searched for, User’s search history on the Service, User’s most-used routes and stations, all User-generated data, User’s reports and reviews regarding the Service, your in-app settings, your rank and user profile including your nickname and avatar, in-app usage scores (“points”) you receive for using the Services, Facebook Access Token, Google Sign-In Token, Advertising ID, User IP address, and any additional information which the User actively chooses to provide.
The geo-location information we collect includes detailed location and route information, including GPS signals and other information sent by your mobile device for which the Service is installed and currently activated. We use this location and route information to create a detailed location history all of public transit trips.
We collect such information via your use of the Service and through information which you voluntarily provide and/or upload to the Service as further described in this Privacy Policy below, for purposes of providing the Service, enhancing the User’s experience and personalizing the Service and security purposes as further detailed below and.
If you choose to use the Services via a User Account you may create such User Account via Facebook Connect, Google Sign-In, personal Email address or other social networks. If you choose to use your social media network accounts then we may also have access to your public profile, which includes your name, gender, profile picture, age group and residency.
For avoidance of doubt, any Non-Personal Information connected or linked to any Personal Information is deemed as Personal Information as long as such connection or linkage exists.
HOW WE COLLECT INFORMATION ON OUR USERS
There are two main methods we use:
Use of the Service. We collect Non-Personal and Personal Information when you access or use the Service. In other words, we are aware of your usage of the Service and may gather, collect and record the information relating to such usage. We also collect Non-Personal and Personal Information derived from information we receive from third party services and providers we work with.
Voluntarily Provided. We may collect Personal Information which you voluntarily provide when you use the Service. We may also collect information provided via your social network account in the event that you voluntarily choose to create a User Account via such third party social networks (like Facebook or Google+).
HOW WE USE YOUR INFORMATION
Your information is collected for the following purposes: (i) to provide you with and to operate the Service, including for statistical and research purposes and creation of aggregated anonymous data; (ii) to personalize the Service and content provided to you, to customize your experience with the Services, to suggest you with transport recommendations based on your preferences and to enable you to retrieve your information; (iii) to develop, improve and customize the Service, the experience of other users and the offering available through the Service; (iv) to be able to contact Users for the purpose of providing them with technical assistance, support, handle requests and complaints and collect feedback in connection with performance of the Services; (v) to send you updates, notices, announcements, and additional information related to the Service (vi) to be able to reply to User online queries in connection with performance of the Services; (vii) for customization and improvement of the Service’s accuracy and interface; (viii) to use such information for ours commercial purposes; (ix) to display or send to you marketing and advertising material when you are using the Service, including in accordance with the section titled ‘Direct Marketing’ herein and (x) to comply with any governmental agencies’ legal requests or court orders, and/or with any applicable law, rule or regulation. Any statistical, aggregated or anonymous data may be used by us at our discretion for any purpose.
SHARING INFORMATION WITH THIRD PARTIES
We will not share any Personal Information we collect with any third party, except in the following cases: (i) to satisfy any applicable law, regulation, legal process, subpoena or governmental request; (ii) to enforce this Privacy Policy and/or the Terms of Use, including investigation of potential violations thereof; (iii) to communicate with its Users regarding ours service; (iv) to detect, prevent, or otherwise address fraud, security or technical issues; (v) to respond to User’s support requests; (vi) respond to claims that any content available on our service violates the rights of third parties; (vii) to respond to claims that contact information (e.g. name, e-mail address, etc.) of a third-party has been posted or transmitted without their consent or as a form of harassment; (viii) to protect the rights, property, or personal safety of PAID, its Users, or the general public; (ix) if PAID is undergoing any change in control, acquisition or conveyance of all or substantially all of its assets; or (x) to collect, hold and/or manage your Personal Information through PAID’s authorized third party service providers, as reasonable for business purposes, which may be located in a country other than the country of your residency or location, that may not have the same data protection laws as your jurisdiction, as listed below; (xi) pursuant to your explicit approval prior to the disclosure; (xii) cooperate with third parties for the purposes of adding operational features to the Service, enhancing and personalizing the User’s experience, monetization and commercialization; or (xiii) to authorized third party service providers solely for the purpose of providing you with the Service. For avoidance of doubt, we may transfer and disclose or otherwise use Non-Personal Information or information which is linked to anonymous random identifiers or information that is aggregated in a nonidentifiable way, at its own discretion.
DELETION OR MODIFICATION OF PERSONAL INFORMATION
We retain Personal Information for such a period of time as is necessary in order for us to be able to use the Personal Information for the sole purposes described in this Privacy Policy and for the purpose of providing its Services under the Terms of Use. If for any reason you wish to modify or delete your Personal Information please contact us at: and we will make reasonable efforts to modify anonymize or delete any such Personal Information pursuant to any applicable privacy laws.
THIRD PARTY SOFTWARE/SERVICE
While using the Service we may be using third party software and/or service for various needs, inter alia, in order to collect and/or process the information detailed herein (the “Third Party Service Provider”). Note that these are independent software and/or service providers and we do not take any liability about the information collection policies of these providers, or about any kind of issue, legal or otherwise, relating thereto. Third Party Service Provider’s includes the following:
Facebook, which privacy policy is available at https://www.facebook.com/about/privacy/ (for purposes of FB Connect and use of developer tools such as FB Analytics offered by FB via the FB SDK)
Token Transit, which privacy policy is available here.
We may also provide additional transit-related services, including on-demand transit services, provided by its third party operational service partners (as they may evolve from time to time at our discretion). Such third party providers’ services include Gett, Uber and any other party, all of which are subject to a respective terms of use and privacy policies.
CREATING AN ACCOUNT USING SOCIAL NETWORKS
By signing onto our using your social network account (such as your Facebook account), you agree to provide us with information (including personal information) obtained from the social networks, for the purposes provided under this Privacy Policy. In the event that you create a User Account via your Facebook or Google social network account, we may have access to your public profile namely your name, gender, email address, photo, age group and residency. Your use of social networks to create your account is subject to the privacy policies and term of use of such third party social networks.
USE OF COOKIES
To make the Site work properly, when you visit or access our Site we use industry-wide technologies such as “cookies” (or similar technologies) in order to improve your user experience by enabling us to ‘remember’ you, either for the duration of your visit (using a ‘session cookie’) or for repeat visits (using a ‘persistent cookie’). In addition, we may use cookies in order to deliver ads relevant to you. By using or accessing our Site, you agree to our use of cookies. Most browsers will allow you to erase cookies from your computer’s hard drive, block acceptance of cookies, or receive a warning before a cookie is stored. Please note that by deleting or disabling future cookies, your user experience may be affected and you might not be able to take advantage of certain functions of our Site, therefore, your online experience may be limited.
DIRECT MARKETING
You hereby agree that we may use your contact details for the purpose of informing you regarding our products and Service, which may interest you, and to send to you other marketing material, transmitted to the email address or to the mobile device. You may withdraw your consent contacting us at: . We may also permit, solicit or contract certain authorized partners of PIDC to conduct advertising campaigns on the Services. In addition, PIDC may display advertisements via the Service. Such advertisements that you see when accessing the Service may be targeted on the basis of your geographic location and language. It is clarified that PIDC is not responsible for the content of said advertisements and the products delivered or services rendered thereby by third parties and you irrevocably and unconditionally agree that we shall not be held responsible or liable in connection thereof.
SECURITY
We take a great care in implementing and maintaining the security of PIDC’s Service and its User’s Personal Information. PIDC employs industry standard procedures and policies to ensure the safety of its Users’ Personal Information, and prevent unauthorized use of any such information. We cannot, however, guarantee that unauthorized access will never occur.
CHANGES TO THE PRIVACY POLICY
The terms of this Privacy Policy will govern the use of the Service and any information collected therein. PIDC reserves the right to change this policy at any time, so please re-visit this page frequently. In the event of any substantial change of this policy, we will make reasonable efforts to post a clear notice on the Site. Such substantial changes will take effect seven (7) days after such notice was provided on our Services or sent by email. Otherwise, all other changes to this Privacy Policy are effective as of the stated “Last Updated” date and your continued use of the Service after the Last Updated date will constitute acceptance of, and agreement to be bound by, those changes.
ADDITIONAL INFORMATION, COMPLAINTS AND CONTACTING US
If you have any questions (or comments) concerning this Privacy Policy, you are welcome to send us an email at: and we will make an effort to reply within a reasonable timeframe.
In the event that you wish to make a complaint about how we process your personal data, please contact us in the first instance at and we will endeavor to deal with your request as soon as possible. This is without prejudice to your right to launch a claim with your supervisory authority.
By contacting us you warrant and agree that you are free to do so, and that you do not provide us with information which violate any third party intellectual rights. Without degrading from the aforesaid, all rights, including intellectual property, arising from your communication with us will be owned by us and will be considered as our confidential material. It is clarified that any use of the information you are providing us will be done in our sole discretion, and is not obligated to use all or part of such information.
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