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The Lender's Advantage - March 2013

Advisory Date: 
Tuesday, May 7, 2013

Letter from the District Director

Greetings, and welcome to the first edition of the 2013 West Virginia District Office Lender's Advantage Newsletter.

This quarterly newsletter will provide Lenders with updated information on interest rates, notices, upcoming training events, and much more.

This year, we will continue to look for ways to accomplish our mission through the "three C's" of business - Capital, Contracts, and Counseling. My team is here for you, if there is anything we can do to assist you, please contact us. And remember, by working together, we are building WV's communities one small business at a time.

Small Business is BIG Business in West Virginia.

Warm Regards,
Judy K. McCauley
West Virginia District Director

The Benefits of Promoting Export Lending Programs

Have you asked any of your customers or prospects lately if they export any of their goods or services? No! Well you’re missing out on one of the fastest ways to grow your borrowing relationship with current and prospective customers while taking little risk. How? By using SBA’s three Export Loan Guarantee programs listed below - you'll note that all three programs provide a 90% loan guarantee.

  • Export Express Program- To participate in the Export Express program, you need to be an existing SBA Express lender and be recommended by the West Virginia District Office.
  • Export Working Capital Program - The approval process is very quick. To use SBA’s Export Working Capital Guarantee program, if you are already a 7(a) lender, all you need to do is complete the attached 750EX form.
  • International Trade Loan Program - You are already qualified to use the International Trade Loan program. No additional forms are needed. Just think a 90% guarantee to finance fixed assets up to 10 years and real estate for up to 25 years, what a deal.

If you have any questions, please contact Leo Lopez, Lender Relations Specialist, at leo.lopez@sba.gov, 304-347-5520 or Bill Houck, Regional Manager for SBA’s Office of International Trade, at william.houck@sba.gov, 202-557-4063.

So what are you waiting for, get out there and ask all your customers and prospects “Are You Exporting?”

Updated Notices

Electronic Fingerprint Submission for SBA Form 912 and 1081

SBA is announcing that Electronic Fingerprint Submission may be used in connection with SBA Form 912 and SBA Form 1081 background checks in the 7(a), 504 loan, and surety bond programs. This program enhancement is expected to expedite background checks required in connection with Agency loan and surety bond programs.

>Read more

Issuance of SOP 50 57, 7(a) Loan Servicing, and Liquidation

The Office of Capital Access announces the issuance of SOP 50 57 effective March 1, 2013. The new SOP, which is designed for easy use by lenders and dedicated solely to 7(a) loan servicing and liquidation, is part of the Agency’s ongoing efforts to modernize and simplify its loan program requirements.

>Read more

Change to SOP 50 10 (E) and Release of Alternative Small Loan Advantage (SLA) Authorization

SBA is announcing a change to SOP 50 10 5(E) to permit certain lenders in the Small Loan Advantage (SLA) program to use an alternative Authorization. This alternative Authorization may be used by Preferred Lender Program (PLP) lenders using their PLP authority to secure SBA-guaranteed SLA loans.

>Read more

Franchise Registry Announces a “Significant Improvement” to Their Eligibility

On January 29, 2013 the Franchise Registry (FR) announced it had developed an Easier to Use SBA Franchise Eligibility Process and instituted 5 Simple Steps to make lending to franchises easier for commercial loan officers.

In that announcement FR stated that they “have redesigned the franchisor SBA eligibility detail page to provide a step-by-step process to guide lenders through the collecting and preparing of the SBA documentation for franchise loans (as detailed in SBA Standard Operating Procedure 50 10 5(E) on page 95)”.

FR’s announcement identified these five steps for loan officers:

Step #1 Identify and provide the year of the agreement for which you are trying to determine SBA franchise eligibility.

Step #2 Print and read the certificate and follow any eligibility notes that may exist.

Step #3 Print any addendums that may be required for eligibility.

Step #4 Contact the franchisor to get a signature for the certificate and other documentation, as outlined.

Step #5 Submit executed certificate and other documentation to the SBA.

The announcement went on to offer free “personal training or group webinar” to lenders in how to use the FR.  If your bank makes loans to franchises and you are interested in taking advantage of this opportunity, please call 703-740-4700 or e-mail psantomauro@frandata.com for more information on this opportunity.