SBA SOP 50 10 8.1, Intro — SBA 7(a) and 504 Business Loan Requirements

SOP 50 10 8.1 Intro

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SBA 7(a) and 504 Business Loan Requirements Once an SBA Loan (defined as the full amount of the 7(a) loan or the Gross Debenture amount of the 504 loan) is disbursed, SBA Lenders must comply with the servicing and liquidation requirements in SOPs 50 57 (for 7(a) loans) and 50 55 (for 504 loans). Section A: Core requirements for all 7(a) and 504 loans: 7(a) Lenders and CDCs (SBA Lenders) must always start by reviewing the contents of this section. These core requirements apply to both 7(a) and 504 loan programs. Section B: 7(a) Loan Program Specific Requirements: 7(a) Lenders must comply with the Core requirements in Section A and with the detailed guidance provided for each delivery method in the applicable chapter of Section B. Requirements for all 7(a) loans from the SBA Terms and Conditions through loan closing and disbursement are detailed in Chapter 6. Chapter 1: Standard 7(a) Loans (Loans greater than $350,000) Chapter 2: 7(a) Small & SBA Express Chapter 3: 7(a) Manufacturers’ Access to Revolving Credit (MARC) Chapter 4: 7(a) CAPLines Chapter 5: 7(a) Export Trade Finance A. Export Express B. Export Working Capital Program C. International Trade Chapter 6: SBA Terms and Conditions through Disbursement for all 7(a) Loans Section C: 504 Loan Program Specific Requirements: CDCs must comply with the Core requirements in Section A and with the detailed guidance provided for the delivery of 504 Loan Program loans. Exceptions to Policy: When the policy set forth does not adequately address the unique circumstances regarding a particular matter, the SBA Lender may submit a request for an exception to policy. For the 7(a) Loan Program:  Lenders that do not have delegated authority may submit requests for exceptions to 7aLoanProgram@sba.gov and the loan will be processed under non-delegated procedures.  Lenders that have delegated authority must make requests for exceptions to 7aDelegatedLoanApps@sba.gov, providing detailed information about the application including the name of the Applicant, the names of the principals, address of the project, loan amount, delivery method, and a discussion of the policy for which the exception is being requested along with an explanation why the exception to policy should be granted. Lender is to provide a summary of the facts - SBA will not be reviewing the entire case file or multiple attachments. o If SBA approves the exception, the Lender will receive an email confirming the approval, and the Lender must proceed to process the application under delegated authority. The Lender must retain the approval email in the loan file. Exceptions to policy will be considered on a case-by-case basis, and the decision will only apply to the specific request. o The 7aDelegatedLoanApps@sba.gov email account is only for Lenders with delegated authority that have questions about a specific loan application and is not to be used for general policy questions, which should be sent to 7aQuestions@sba.gov. Lenders must indicate the loan amount and delivery method in their email. For the 504 Loan Program, CDCs may request an exception to policy at the time of application in the credit memorandum. If the CDC requests an exception to policy after loan approval, or as a result of changes to an approved 504 project, a policy exception may be requested through the submission of a “327 action” for review. The loan processing center or Headquarters team will analyze the request and make a recommendation to the D/FA or designee for 504 loans and for 7(a) loans, except Export Working Capital Program (EWCP), Export Express, and International Trade (IT) loans, or to the Director, International Trade Finance (D/ITF) for EWCP, Export Express, and IT loans. The D/FA or designee, or D/ITF, or an individual acting in that capacity, will make the final decision (with the concurrence of the D/OCRM for Export Express loans). The D/FA or designee or D/ITF may not approve an exception to policy if such exception would be inconsistent with a statute or regulation. This procedure may only be used in situations where a minor deviation from standard policy is necessary for the specific situation. Exceptions to policy will be considered on a case-by-case basis, and the decision will only apply to the specific request. The decision must be documented in the appropriate Agency loan file.

Source: SBA SOP 50 10 8.1, Intro — SBA 7(a) and 504 Business Loan Requirements · source URL · snapshot 0fb0c4692cf52938