During this time of uncertainty in response to the COVID-19 pandemic, the Small Business Administration (SBA) continues to provide guidance on best practices as lenders adjust to new circumstances.
In regards to acceptable signatures on applications and loan documents for 7(a) and 504 business loans, the SBA currently follows the rules set forth in Appendix 8 of Standard Operating Procedure (SOP) 50 10 5 (K)
(click here to access)
.
Effective March 24, 2020 and until September 30, 2020, SBA 7(a) and 504 lenders may accept scanned copies of signed applications and loan documents when electronic signatures are not feasible.
If the method of scanned documentation is used, the lender must obtain:
- A copy of the individual's driver's license or other valid form of identification (front and back); and
- A valid original signature on the applicable document within 6 months of the date of the Note.
Click here
to read the official SBA Procedural Notice effective March 24, 2020.
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