SBA SOP 50 10 8.1, B.Ch6.D.11 — SBA Express, Export Express, and 7(a) Small Loans:

SOP 50 10 8.1 B.Ch6.D.11

Effective 2026-10-01 · publisher's stamp for this provision

11. SBA Express, Export Express, and 7(a) Small Loans: a. A Lender must use the same written closing and disbursement procedures and documentation as it uses for its similarly-sized non-SBA guaranteed commercial loans in addition to meeting the requirements of Paragraph D.4., Required SBA Forms above. There must be a promissory note that is legally enforceable and assignable in the event that it would ever have to be assigned to SBA. b. The Lender must obtain all required collateral and must meet all other required conditions before loan disbursement, including obtaining valid and enforceable security interests in any loan collateral. These conditions include requirements identified in the loan write-up, such as standby agreements, appraisals or evaluations, business licenses, and cash/equity injections. c. Before disbursing an SBA Express, Export Express or 7(a) Small Loan, the Lender must: i. Verify Borrower financial information in accordance with Section A, Ch. 5, Para. B, IRS Tax Transcript/Verification of Financial Information. ii. Obtain evidence of no un-remedied adverse change since the date of the application (or since any of the preceding disbursements in the case of multiple disbursements), in the financial or any other condition of the Borrower that would warrant withholding any disbursement. For revolving line of credit disbursements, Lenders should essentially follow the same practices as they do for their non-SBA guaranteed commercial revolving lines of credit. iii. Obtain, where applicable, required hazard insurance. iv. Make, where applicable, the required flood hazard determination and require flood insurance, if applicable. v. In the construction of a new building or an addition to a building, obtain the Borrower's agreement that the construction will conform to the "National Earthquake Hazards Reduction Program Recommended Provisions for the Development of Seismic Regulations for New Buildings". vi. Obtain the Borrower’s agreement that it will, to the extent feasible, purchase only American-made equipment and products with the proceeds of the loan. This certification is included on the SBA Form 1919. vii. Obtain the Borrower’s certification that no principal who holds at least 50 percent of the ownership or voting interest of the Borrower or OC is delinquent more than 60 days under the terms of any administrative order; court order; or repayment agreement requiring payment of child support. viii. Require, where applicable, appropriate environmental reviews and compliance in Section A, Ch. 5, Para. E, Environmental Policies and Procedures. Lenders may not request a loan number for a loan that will be secured by collateral that will not meet SBA’s environmental requirements or that will require use of a non-standard indemnification agreement. d. Regardless of processing method or size of loan: Within 15 business days after final disbursement, the Lender must submit to SBA through E-Tran Servicing, or successor SBA Loan System, any changes to the terms and conditions that were in place at the time the SBA loan number was issued and retain all other documents in the Lender’s loan file. e. Access to Funds: Loan funds may be accessed through a variety of methods consistent with the way the Lender normally conducts business for its similarly-sized, non-SBA guaranteed commercial loans. Use of a credit or debit card to access the loan funds is acceptable. In providing access through credit or debit cards, Lenders must ensure that these loans are documented by legally enforceable and assignable promissory notes.

Source: SBA SOP 50 10 8.1, B.Ch6.D.11 — SBA Express, Export Express, and 7(a) Small Loans: · source URL · snapshot 0fb0c4692cf52938