The West Texas District Office staff would like to wish you a safe and happy holiday season. We truly appreciate you for supporting our SBA loan programs!
SOP 50 10 5(F) - Lender and Development Company Loan Programs
As mentioned in our October 2013 newsletter, SBA Information Notice 5000-1290 (released September 25, 2013) announced the issuance of an update to the Standard Operating Procedure (SOP) 50 10 5 on Lender and Development Company Loan Programs. The updated SOP 50 10 5(F) will become effective on January 1, 2014. This version of the SOP will apply to all applications received by SBA on or after January 1, 2014. The Information Notice summarizes some significant changes being made to both the SBA 7(a) and SBA 504 Loan Programs. The West Texas District Office will hold a webinar in January 2014 to train lenders on the changes outlined in SOP 50 10 5(F). Click here to view this Information Notice in its entirety.
SBA Information Notice 5000-1291 (released September 26, 2013) announced the 1st Quarter "Peg" Rate, Direct Interest Rate, and Maximum Interest Rate of a Third Party Lender Loan for a 504 Project. Click here to view SBA Information Notice 5000-1291.
West Texas District Office - Most Active SBA Lenders & Micro-Lenders
Would you like to find out which lenders and certified development companies are making the most SBA loans in this District? Click here for detailed information regarding our most active participants in the SBA loan programs.
Lender Relations Hot Topics
SBA Information Notice: 5000-1299 - Veterans Advantage
SBA Information Notice 5000-1299 (released December 18, 2013) announced a new initiative called Veterans Advantage. This initiative will begin on January 1, 2014 and continue through September 30, 2014. Veterans Advantage is intended to facilitate lending to veteran-owned small businesses so that they have the tools they need to start and grow their businesses. Under the Veterans Advantage initiative, SBA has waived the up-front guaranty fee on all SBA Express loans. Also, on 7(a) loans of $150,000 or less, SBA has waived the on-going guaranty fee/annual service fee until September 30, 2014. (Click here to view SBA Information Notice 5000-1288 which announced these fee reductions).
In order to qualify for Veterans Advantage, businesses must be 51% or more owned and controlled by an individual or individuals in one or more of the following groups:
Veterans (other than dishonorably discharged);
Active Duty Military service member participating in the military's Transition Assistance Program (TAP);
Reservists and National Guard Members; or
Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member; or widowed spouse of a service member who died while in service or of a service-connected disability.
Please note that the SBA Patriot Express Pilot Loan Program expires December 31, 2013.
Site Visit Reporting Requirements
When an SBA loan goes into default, it is important that lenders be aware of when a site visit is required. If a lender has a business that is operating and the loan is 60 days in arrears, a site visit is required. SOP 50 57, Chapter 15, Page 85 provides SBA policy and procedures regarding site visits. Chapter 3 of SOP 50 57 tells what reporting requirements should be in a site visit report. A site visit must be made within 60 calendar days of an uncured payment default or sooner if the collateral could be removed, lost or dissipated. A site visit must be made within 15 calendar days of the occurrence of an adverse event that caused the loan to be classified in liquidation status or sooner if the collateral could be removed, lost or dissipated. In any case, a site visit should be made whenever warranted by prudent lending practices. All site visits should be documented by a site visit report, which should be kept in the loan file. If you have questions, regarding this topic or any other servicing and liquidation issues, please contact Roger Henderson, Lender Relations Specialist/Brand Manager, at 806-472-7462, ext. 107 or by email at: email@example.com
We are currently in the process of establishing out lender training calendar for 2014. Our Lender Relations team can provide training at your bank location or at our West Texas District Office in Lubbock. Training is available for the following topics: SOP 50 10 5(F); SBA Loan Programs; Purchasing & Liquidation or other topics. To set up and lock in your training date, please contact one of the following individuals: Armando Garcia, Lead Lender Relations Specialist at 806-472-7462 ext. 104/ firstname.lastname@example.org ; Roger Henderson, Lender Relations Specialist at 806-472-7462 ext. 107/ email@example.com or Derenda Fisher, Lender Relations Specialist at 806-472-7462 ext. 123/ firstname.lastname@example.org
Small Business Week Award Nominations
The West Texas District Office is currently seeking successful and inspiring entrepreneurs to represent the West Texas district during the 2014 National Small Business Awards event hosted by the SBA. All nominations are due January 17, 2014. Please contact Kim Hobgood, Business Development Specialist, at 806-472-7462, ext. 108 or by email at: email@example.com
SBA Opportunities Workshop - January 29, 2014
The Texas Tech University Small Business Development Center (SBDC) in Lubbock will host the SBA Opportunities Workshop on Wednesday, January 29, 2014, from 6 P.M. to 8 P.M. The SBDC's address is 2579 S. Loop 289 in Lubbock. Small business owners will have the opportunity to learn more about the SBA loan programs and to learn about the services provided by the Small Business Development Center. To register for this event, please contact ElaineMelot at 806-745-1637 or by email at: firstname.lastname@example.org