August 8, 2017
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA Hot Topic Tuesday — New SOP 5010 and Lender Oversight Updates
William, “It’s ok to call me Bill” Manger showed up at the Orange County Inland Empire District Office Awards Forum yesterday and updated a little over 100 SBA lenders about what is happening @ SBA.
Good news — SBA 7(a) and 504 will not run out money before the end of the government’s fiscal year September 30, so don’t take that premature holiday trip.
And more good news. A streamlined SOP 5010 is slated to be released October 1.
Bill says, “We’ve made great strides. We are following the President’s and Administrator’s directives of streamlining as much processes as possible.”
Kurt Chilcott of CDC Small Business asks: “Bill, you were up on the Hill speaking about OCRM and lender oversight and the legislation that is working it’s way through. I thought you might spend a couple minutes on where the agency stands on lender oversight.
Bill Manger: Our focus is to make sure that we maintain zero subsidy. We do not want to have to go to Congress and ask them for an authorization of capital for the program. With that being said we want to make sure that we run a program that has the risk mitigated as much as possible to make sure that we can operate at zero subsidy.
We are happy to work with our friends up on Capitol Hill to tighten up oversight as they see fit and as we feel is appropriate.
We want to work them to make sure the level of oversight has not become overly burdensome but we want to make sure it is robust enough so that we can maintain a very healthy portfolio and not jeopardize our zero subsidy.
The total size of the programs in the Office have grown substantially since I was at the SBA previously. All told the programs are almost $120 Billion so that is quite a lot of risk to the taxpayers.
I am also very pleased to say that at this point in time I think our purchase rate is about the lowest it has ever been. It’s under 2%. So that is phenomenal.
Due to the fact that the economy is stronger now but again, we want to make sure that our lenders have portfolios that are not overly risky so that we can assure and attain the zero subsidy.