December 20, 2016
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA Hot Topic Tuesday — SBA Revises Form 912 Clearance Procedures
The basic procedures you need to know effective December 15, 2016.
The processing of a 912 with misdemeanor charges is changed to:
1) If the disposition of any misdemeanor(s) is older than six months prior to receipt of the loan application the lender only needs to document the file with the case information and a 912. No further action is required.
2) EXCEPT — if the misdemeanor is for a crime against a minor, (e.g. child abuse, possession of child pornography) than a background check must be completed by SBA. The lender cannot disburse the loan without SBA’s clearance.
Unchanged — If the applicant has any criminal charges pending, is on parole or probation, is under deferred prosecution, the applicant is ineligible for an SBA loan.
And unchanged is the lender must obtain SBA’s clearance for an applicant with a felony conviction.