October 31, 2017
SBA Hot Topic Tuesday — Quick Takeaways from SBA’s Sr. Management 7(a) Quarterly Call
By Bob Coleman
Editor, SBA Hot Topic Tuesday
Quarterly, SBA’s senior management team hosts a call for 7(a) lenders. Here are some quick takeaways from last week’s call you and your team should know:
Download the PowerPoint
- Poultry Loan proceeds cannot be used to purchase excess land. If the operation only requires 10 acres, you cannot purchase 160 acres.
- A franchise eligibility list is posted on SBA’s website. If a franchise is not on the list you must assume it is not eligible for SBA financing. Guidance is given on getting a new franchisor placed on the list.
- If a small business’ revenues comprise more than 5% from “sexual purient” matieral, it is ineigible.
- Zero down financing for startups has been eliminated. A minimum 10% equity injection is required.
- Lenders must notify borrowers of a CAIVRS disclosure. (Note: If SBA does not release suggested language, I’ll draft something for you to use before the end of the year.)
- New 1919/1920 forms can be used now, but are mandatory until January 1.
- Personal guaranties may be required for less than 20% owners if they are significant in running the company.
- There are new IRS 4506 forms
- Due to the number of changes in the SOP 5010 (J), a track change SOP was not released.
- SBA Express lines of credit now include a term-out period.
- SBA has announced a SBA 504 “listening session” on Tuesday, 11/7 @ 2 pm Eastern
- SBA has announced a SBA 7(a) listening session” on Tuesday, 11/7 @ 11 am Eastern
Finally, there are numerous changes in managing your loan service provider. Be sure to register for our webinar: