, The latest news for you

“Teamwork is the secret that makes common people achieve uncommon results”

– Ifeanyi Enoch Onuoha, author, teacher, and coach.

Greetings!

Why a quote on teamwork?

Well, SBA finally issued the new SOP 50 10 7, effective 8/1/2023.

As if that wasn’t enough, they also dropped the Notice 5000-846632 announcing the new SOP 50 57 3, also effective 8/1/2023. As of this Newsletter neither the Notice nor the 50 57 3 are posted on SBA's website.

It will take your whole team to be sure you’ll be ready for the changes.

Everyone on the team needs to read, understand, discuss, and prepare to implement the changes to your process and procedures.

LRM's SBA Notice Nook

Notices from SBA in May

SBA Info Notice 5000-846918 Community Advantage Small Business Lending Company Conversion issued 5/1/2023

SBA Procedural Notice 5000-846991 Implementation of the Removal of the Loan Authorization with the Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission issued 5/9/2023

SBA Procedural Notice 5000-846607 Implementation of the Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs and raising of the maximum loan amount for 7(a) Small loans issued 5/9/2023

SBA Info Notice 5000-847027 Issuance of SOP 50 10 7 issued 5/10/2023

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

SBA Procedural Notice 5000-847482 Revision to SBA Procedural Notice 5000-846991 for the 7(a) Loan Program issued 5/26/2023

The link to the new 50 57 3 isn’t available yet. We recommend reaching out to the NAGGL website or your local SBA District Office. As soon as the link is available, we’ll add it to the online newsletter; you can check for updates via our LinkedIn page here.

Five common errors in EPC/OC loans

By Rebecca Mendoza

EPC/OC loans aren’t all that difficult.

But that doesn’t mean things don’t get missed! Sometimes the simpler something is, the easier it is to overlook something.

An Eligible Passive Company (EPC) is an exception to the CFR because of their passive income.

That means each condition allowing the exception must be carefully and strictly adhered to. And it means that a violation of those conditions will make the loan ineligible, and your guaranty will be denied. Not what you – or we – want!

Here are the five most common problems we see, with our recommendations for fixing – and avoiding – them.

LEARN MORE

THE LATEST NEWS FROM OUR BLOG

SBA issues new SOP 50 10 7

By Lori McCausland

It’s here – what we’ve all been waiting for: the latest update for SOP 50 10 7, Lender and Development Company Loan Programs!

(You have been eagerly waiting, right? Or is it just us, because we’re SBA nerds?)

All kidding aside, this SOP update takes effect August 1st, 2023. Until then, of course, you’ll continue using SOP 50 10 6, through July 31st. Read the full update here.

Also, note that SBA released three Notices with the SOP update:

READ ON

You have a big task ahead! To protect the integrity of your SBA 7a program, you and your team need to be thoroughly familiar with the changes in these new SOPs.

We can help! Watch for the updates in the coming weeks 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,