Tags: SBA Procedural Notice
February 3, 2015
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA has issued a new procedural notice effective February 1, 2015 requiring the use of E-Tran by all 7(a) lenders for certain unilateral servicing and liquidation actions.
This Procedural Notice announces that SBA will soon begin requiring the use of E-Tran by all 7(a) lenders to notify SBA of certain unilateral servicing and liquidation actions. This applies to all 7(a) loans, whether they are classified in “approval,” “regular servicing,” or “liquidation” status, as those terms are defined in Standard Operating Procedure (SOP) 50 57, Chapter 1.
Currently, SOP 50 57, Chapter 3, Paragraph C.2 identifies those unilateral servicing and liquidation actions that require a lender to notify SBA of the action taken. The SOP reads as follows:
Lenders must notify the appropriate SBA Loan Center in writing or via e-Tran when they take substantive unilateral Loan Actions, such as those listed below. For specific information on how to notify SBA, see the most recent version of the 7(a) Lenders Servicing and Liquidation Matrix.
SBA’s SOP 50 10 5(G), Subpart B, Chapter 7 contains similar language concerning unilateral postapproval/pre-disbursement actions that require notice to SBA.
Beginning February 1, 2015 all 7(a) lenders will be required to notify SBA via E-Tran for the following unilateral actions:
– Cancel the SBA Guaranty*
– Extend the Maturity Date (prior to the stated maturity expiring)*
– Change the loan from revolving to non-revolving
– Change the Borrower’s name or address
– Assumption of the loan without release of an Obligor (adding a borrower)
– Adding a Guarantor to the loan
– Classify the loan in “liquidation” status