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Lender Newsletter - November 2013
Thursday, November 21, 2013
Janelle Jones (316-269-6616)
CHANGES TO THE 7(A) LOAN PROGRAM: NEW SBA SOP 50 10 5 (F)
On January 1st, SBA’s new SOP 50 10 5 (F) will go into effect. This SOP implements a number of changes to the 7(a) loan program. These changes are significant. SBA has issued different procedures for managing, underwriting and documenting 7(a) loans, with $350,000 being the threshold for differing standards. In addition, there are significant changes regarding application forms, submission processes and collateral.
Wichita District Office staff will be presenting webinar training on the new SOP and these important changes on the following dates:
Wednesday, Dec. 4th at 1:30 p.m.
Wednesday, Dec. 11th at 10:00 a.m.
Wednesday, Dec. 18th at 1:30 p.m.
The sessions are identical and will last approximately 90 minutes. RSVPs are not required, but to receive a copy of the PowerPoint presentation prior to the training, please e-mail firstname.lastname@example.org. We hope you will be able to join us as we highlight these important changes in 7(a) lending. Questions? Please contact one of our Lender Relations staff at (316) 269-6571.
PATRIOT EXPRESS LOAN PROGRAM TO EXPIRE DEC. 31ST
In 2007, SBA developed the Patriot Express Loan Initiative to support the entrepreneur segment of the Nation’s military community. This was a “pilot” 7(a) loan program and is set to expire as of December 31st, 2013. We have been informed that the Patriot Express Loan Program will not be extended beyond this date, but will be replaced by a new veteran’s initiative. Beginning January 1, 2014, there will be no upfront guaranty fee on all veteran loans processed and approved under the SBA Express program up to $350,000. This initiative will continue through September 30, 2014.
SMALL/RURAL LENDER ADVANTAGE LOAN PROGRAM TO EXPIRE DEC. 31ST
As part of the significant changes to the 7(a) loan program included in the new SOP 50 10 5 (F), the Small/Rural Lender Advantage Loan Program will also be discontinued as of December 31, 2013. While this program has not been widely used in our district as of late, please be advised that any applications submitted under this program must be received by SBA’s Loan Guaranty Processing Center no later December 31st, 2013.
!! REMINDER !! NO FEES ON 7(A) LOANS OF $150,000 AND LESS
As a reminder, SBA has eliminated both the on-going servicing fee paid by the lender and the upfront guaranty fee paid by the borrower on all 7(a) loans of $150,000 and less, regarding of the loan program used. This fee waiver makes smaller SBA loans more affordable and is authorized through September 30, 2014.
FISCAL YEAR END LOAN NUMBERS
With your help, the Wichita District Office approved 185 loans totaling $64,627,100 during fiscal year 2013 (October 1, 2012 through September 30, 2013). We appreciate your use of SBA’s loan programs to help America’s small businesses start, grow and succeed.