July 23, 2015

A Coleman Special Report — SBA Halts 7(a) Lending Effective Today

By Bob Coleman
Editor, Coleman Report

This just in from SBA.

SBA will no longer automatically issue a SBA 7(a) loan number for any SBA loan submitted beginning Thursday, July 23.

While I expect some loans to be funded take notice…. October 1, 2015 should be your new expected loan closing date — unless Congress passes legislation for the benefit of Main Street and her employees.

Here’s the important verbiage from SBA’s notice 5000-1344 dated July 22.

Applications will be processed up to the point of approval and then will be placed into a queue awaiting the availability of program authority (the “Queue”).

Once program authority becomes available due to Congressional action or as a result of cancellations of loans previously approved this fiscal year, applications in the Queue will be funded in the order they were approved by SBA, with the exception that requests for increases to previously approved loans will be funded before applications for new loans.

Read the sad notice here