5 Takeaways from the 7(a) Connect Quarterly Update

5 Takeaways from the 7(a) Connect Quarterly Update

On Tuesday, January 9, SBA held the 7(a) connect call where they discussed the most recent and pertinent SBA updates. Here are five takeaways from the call:

  1. SBA is under a continuing resolution through February 2, 2024.
  2. SBA Forms
    a. NO LONGER IN USE
    i. SBA Form 1050 (Settlement Sheet (Use of Proceeds))
    ii. SBA Form 1971 (Religious Eligibility Worksheet)
    iii. SBA Form 2449 (Community Advantage Addendum (7(a) Pilot Program))
    iv. SBA Form 1920 (Lender’s Application for Guaranty)
    b. RENEWALS & UPDATES
    i. SBA Form 1919 (Borrower Information Form)
    ii. SBA Form 2237 (7(a) Post-Approval Action Checklist)
    c. NEW
    i. SBA Form 3518 (Community Advantage Addendum – 7(a) CA SBLC)
  3. New Compliance Codes
    a. Code 818 – Do Not Pay: SAMS (not registered users – lenders should keep checking SAMS)
    b. Code 819 – TOP Debt Check (DBCK) – To resolve, lenders should provide the applicant with the Agency name and phone number for the applicant to solve
    c. Code 820 – CAIVRS – Details hyperlink in ETRAN will provide: Tax ID Number, Reporting Agency Name, Reporting Agency Case Number
  4. 7(a) lending dollars are down in fiscal year 2024 ($6.26 billion) compared to the same time in FY23 ($6.78 billion). The number of approved 7(a) loans is up 11% in FY24 signaling that small dollar loans continue to rise.
  5. SBA is seeking comments on its 2023 revised Size Standards Methodology. Comments must be received on or before February 9, 2024

Watch the 7(a) Connect Quarterly Call on the Coleman Report YouTube page!