|GLCF received the following information from the SBA’s Office of Capital Access (OCA). They have published several important documents that will affect both the 7(a) and 504 loan programs.
SOP 50 10 7 is effective Aug. 1, 2023, and will apply to all 7(a) and 504 applications received by SBA on or after that date. SBA Lenders and SBA employees must continue to use SOP 50 10 6 for 7(a) and 504 applications submitted through July 31, 2023. This SOP contains SBA’s policies and procedures for the 7(a) and 504 loan programs. Please note that what is currently Part 1 of SOP 50 10 6 will now reside in a new SOP 50 56, to be published shortly.
- SBA Information Notice 5000-847027 on the issuance of SOP 50 10 7. This notice provides some highlights of the changes in SOP 50 10 7 versus SOP 50 10 6.
- SBA Procedural Notice 5000-846607 on the implementation of the final rule on affiliation. This notice provides notification of SBA’s revision of certain policies and procedures in SOP 50 10 6, to be effective for all applications received by SBA on or after May 11, 2023.
- SBA Procedural Notice 5000-846991 on the removal of the requirement for an Authorization in the 7(a) and 504 loan programs. SBA is revising policies and procedures in SOP 50 10 6, to be effective for all applications received by SBA on or after May 12, 2023.
As you can see, we have some time before the new SOP goes live, but the other changes are effective as of today and tomorrow. Regarding the loan authorization, our National Association, NADCO, recently provided the following information:
- The Loan Authorization is formally being replaced by a Terms and Conditions document.
- SBA will continue to require and provide a Terms and Conditions document that can be generated from within SBA’s ETRAN system.
What is not changing:
- There is no change to the content of the Terms and Conditions document vs. the Loan Authorization at this time.
As GLCF gets more information, we will be sure to share it with our lending partners!