Standard Operating Procedures
(a)Assist the small business in solving a problem;
(b)Assist in its ability to repay the loan;
(c)Will not adversely affect the interest of the lender/SBA; and
(d)Are in compliance with all applicable laws and regulations.
(3)Remember that certain terms and conditions were placed in the loan and agreed to by all parties (borrower, lender, and SBA):
(a)To ensure repayment ability and success of the small business; and
(b)As a condition to the approval of the loan.
c.Accredited Lender Program (ALP) CDC-serviced loans.
(1)SBA authorizes ALP-CDCs to exercise unilateral authority similar to that of regular 7(a) lenders. All CDCs are accountable for the servicing of their loans. At the time of debenture funding, CDCs assign their loan and collateral documents to the SBA.
(2)ALP-CDCs may act under this unilateral authority if:
(a)The SBA retains the note and collateral documents;
(b)The ALP-CDC prepares the legal documents for SBA signature at the local SBA field office or service center; and
(c)The SBA counsel reviews the documents for legal sufficiency.
13.What Actions May the Lender/ALP-CDC Approve with Unilateral Authority?
Lenders and ALP-CDCs have unilateral authority to make adjustments in the terms and conditions of a loan, as described below, if SBA does not consider the action to be “substantial” and the action does not confer a preference on the lender/ALP-CDC. Lenders may consult with SBA, about whether a proposed action is substantial or will confer a preference, by calling the CLSC responsible for overseeing servicing. The lender/ALP-CDC must document its loan file for any unilateral action it takes and must not notify SBA when it takes such action, except for the following actions which require an update to SBA’s accounting records and loans database:
a. Loan cancellations.
b. Decreases in loan amount.
c. Changes of maturity.
d. Business name or address changes.
e. Extensions of disbursement periods.
f. Notices of prepayment.
The following are circumstances under which lender/ALP-CDC is encouraged take unilateral action, within the guidelines set forth below. The list is not all-inclusive, but rather is a compilation of the most frequently occurring loan servicing actions.
a. Correcting obvious typographical errors.
[REMAINDER OF PAGE 4-14 remains unchanged.]