SBA Hot Topic Tuesday — Quick Takeaways from SBA’s Sr. Management 7(a) Quarterly Call

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:
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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: