SBA Update, Including Lessons Learned from 7(a) Loan Program Changes

The SBA issued new standard operating procedures in the fall of 2023 that significantly revised the way lenders underwrite, close, and service SBA 7(a) and 504 loans. Since then, amended versions of the SOPs have been issued as well as policy notices revising and clarifying certain SBA guidance. Some revisions have increased opportunities and streamlined processes for SBA lenders, while others may have unintentionally created more ambiguity and risk.

This session will focus on the changes to affiliation, change of ownership, and when to obtain certain due diligence, such as IRS tax transcripts, appraisals, and flood insurance. It will also look at when you must notify the SBA of certain servicing and liquidation actions. It will touch upon the updated Universal Purchase Package tabs which are part of the SBA guaranty purchase process. While this program will provide an overview of the recent changes, it will also give some examples of where SBA lenders have had issues with the new rules and where the SBA lending community is hoping to obtain more guidance.

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