August 9, 2016
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA Hot Topic Tuesday — Spring Cleaning SBA’s Regs
SBA released this morning a proposed rule to streamline SBA processes and update or remove outdated provisions.
Proposed changes include allowing lenders to obtain personal guarantees from minority shareholders, making cooperatives eligible for SBA financing and giving lenders more flexibility with interest rates.
On-site/off-site review terminology is replaced with “review/examination assessments.”
The rule proposes to charge lenders the actual cost of reviews and assessments associated with additional oversight, rather than apportioning those expenses among all lenders.
Permitted fees lenders charge borrowers will not change, but will be clarified.
A number of CDC governance issues are addressed, e.g. a CDC director may not be on more than one CDC board.
Lender consultants will be allowed to view SBA’s Review Report without prior approval, subject to confidentiality clauses.
Your comment on the proposed rule is due Oct. 7.
To read all other housecleaning issues, print out the 14 page proposed rule.
SBA 7(a) Secondary Market Quotes
|Maturity||Spread||Price||Weekly % Change||Monthly % Change|
|8 Years||P + 2.75||109.350||-0.137%||-0.364%|
|10 Years||P + 2.75||113.300||-0.044%||-0.352%|
|15 Years||P + 2.75||113.200||-0.176%||-0.702%|
|20 Years||P + 2.75||115.700||-0.086%||-0.366%|
|25 Years||P + 2.75||116.200||-0.180%||-0.853%|
Source: Government Loan Solutions