, New SBA 7(a) SOPs are now in effect!

“Evolve with every experience.” – Lailah Gift Akita, Author

Greetings!

Tis a season of evolution in our industry!

SBA issued three new SOPs to clarify and streamline the SBA 7a Program (see links below). And as with every evolution, there’s a period of adaptation.

That adaptation isn’t easy. We’re here to help you understand it and make the necessary changes – because fighting it (or just giving in) won’t help you succeed.

LRM SBA Notice Nook

Notices from SBA in June & July

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 OIG Report 23-09: Fraud Landscape Report High-Level One-Pager issued 6/27/2023

SBA Report: Protecting the Integrity of the Pandemic Relief Programs issued 6/27/2023

4th Qtr Peg Rate, Direct Int Rate & Maximum Int Rate for 3rd Party Lender Loan for 504 Project issued 6/30/2023

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

1502 Reporting Review

We’ve written before about the importance of staying on top of your 1502 reporting to the SBA.

There have been a few recent updates, so it’s time for another quick review, including links to our previous articles where relevant.

READ ON

THE LATEST NEWS FROM OUR BLOG

SBA Says: Do What You Do!

By Rebecca Mendoza

There are a lot of changes in the new SOPs 50 10 7 and 50 57 3, and all of them are effective 8/1/2023. Yikes. That’s just a few days away!

More yikes: SBA has made it clear that they’re relying on the Lender to follow their own policies and procedures. (Yes, they’re looking at you, Lender.) Basically, they’re saying “Go forth! Do what you do!”

What does that mean? It means your policies and procedures, not just for SBA but for your similarly sized non-SBA loans, had better be robust enough to live up to this challenge. Especially since they haven’t yet indicated how they’ll be auditing or monitoring Lenders for compliance.

Here are our recommendations to make sure you’re prepared.

We have scrutinized all three of the new SOPs and are waiting patiently for the highly anticipated Technical Updates SBA has stated are coming soon. Once those updates are issued, we will be providing you some thoughts on the overall changes to help you make the necessary changes to your SBA program. Watch for the updates in our articles and LinkedIn posts!

And by all means reach out if you need clarification or assistance. Change is seldom easy, and certainly comes with challenges – and 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,