, Adapting to Change

“Concentrate all of your thoughts upon the work at hand. The sun’s rays do not burn until brought into a focus.” – Alexander Graham Bell

Greetings!

We’ve all felt it this month: the weight of change that came with not just one, but three new SOPs. Some complain about new rules and regulations, others avoid it, and many don’t know where to even start!

But none of those approaches will get us where we need to be: focused on the necessary tasks at hand, learning the new rules, updating policies and procedures, and implementing new processes.

Fun stuff, right? (Well, we think so…)

LRM SBA Notice Nook

Notices and other valuable info from SBA

SOP 50 10 7 SBA Policies & Procedures for Lender and Development Loan Company Programs issued 5/10/2023 and effective 8/1/2023

SOP 50 57 3 SBA 7(a) Loan Servicing and Liquidation issued 6/14/2023 and effective 8/1/2023

SOP 50 56 1 SBA Lender Participation Requirements issued 6/14/2023 and effective 8/1/2023

SBA Universal Purchase Package issued 7/26/2023 and effective 8/1/2023

Fiscal Transfer Agent Services for SBA 7(a) Secondary Market issued 8/1/2023

LoanLIST User Guide last updated 8/2/2023

SBA 7(a) Terms and Conditions ETRAN Data Entry Guide issued 8/23/2023

SBA Notice 5000-848801_7a Fees Efft 10/1/2023 for FY 2024 issued 8/29/2023

NEW BORROWER CERTIFICATION REQUIREMENTS

There’s either a Technical Update or revised SOP 50 10 7 coming soon, but who knows when “soon” will be. So, “Do what you do – until we say otherwise” is pretty much what SBA is telling us in the meantime.

What to do whilst you wait? Great question, because there is one key change in SOP 50 10 7 that, if missed, will cause problems.

Your Borrower has to certify their eligibility for an SBA loan. This is new and will likely come with a revised Form 1919 – though we haven’t received that yet.

So, what to do about that?

LEARN MORE

THE LATEST NEWS FROM OUR BLOG

Those Pesky Post-Purchase Packages

By Lori McCausland

When loans are sold on the secondary market, and you as the Lender have requested SBA to repurchase the loan from the investor, next comes that pesky Post-Purchase Package.

It’s easy to let this slip off your to-do list, and to let the file slide to the bottom of the pile.

Easy, but not a great idea. Because SBA requires that you complete the Post-Purchase Package within 45 days after they’ve purchased the loan from the secondary-market investor.

Yes, you can request an extension, but you can’t count on it being granted. A second extension? Only if you have significant – and we do mean significant – extenuating circumstances.

The best approach to a successful SBA program is a team approach, especially when change is happening.

Gather the team together to review the new SOPs, discuss the impact and changes to your program, and decide how to implement them.

Why? Because when the whole team is included, you’ll avoid missing things in the new requirements and SOPs. Everyone will be brought up to speed at the same time, and you’ll have the magic of collaboration on your side. And that’s good for everyone involved.

By all means reach out if you need clarification or assistance. Change is seldom easy, and it comes with challenges. As always, we’re here for you. Give us a call at 877.576.0819, or message us through our website, and we’ll set a time to talk.

Your Team at LRM Lender Consultants,