Revision to SOP 50 10 5(E) – Rental Property

Effective October 1, 2012, the description of the areas that may be included in the calculation of the total square footage of Rentable Property has been revised in SOP 50 10 5(E), Subpart B, Chapter 2, Paragraphs IV.F.2 and 3 and Subpart C, Chapter 2, Paragraphs III.H.6.b)(2) and (3) to read as follows:

2. “Rentable Property” is the total square footage of all buildings or facilities used for business operations (13 CFR 120.10) excluding vertical penetrations (stairways, elevators, and mechanical areas that are designed to transfer people or services vertically between floors), and including common areas (lobbies, passageways, vestibules, and bathrooms). Rentable property may also include exterior space (except parking areas) that is actively used in Borrower’s business operations. Examples of exterior space that is actively used in Borrower’s business operations include: outdoor storage yards for general contractors, trucking companies, and moving and storage companies; or boat slips and docks for marinas.

3. Lender/CDC must document in its loan file the basis for determining that the exterior space is actively used in Borrower’s business operations.

An updated version of SOP 50 10 5(E) incorporating these changes has been posted on SBA’s website.

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