May 24, 2023
C-Suite Wednesday – Applications Open in June for 3 New SBLC Licenses
From June 1 to July 31, the Office of Capital Access will open the application period for new SBLC licenses. SBA will be excluding applications for Community Advantage SBLCs at this time. Once the application period closes, SBA will review and process all the applications and will award up to three new SBLC licenses. SBA plans to issue the licenses in the fall of 2023.
To apply for the new SBLC licenses, lenders must submit an application consisting of information on the proposed SBLC, a business plan, financial information, and supporting documentation. Read below for a more detailed description of the application process.
Lenders can also acquire an SBLC license through the purchase of existing SBLC licenses. The selling SBLC must obtain written approval from the SBA before it can transfer lending authority, and the purchasing entity must submit an SBLC application and file a request for transfer.
SBLC Applications should include:
- Legal name, address, telephone, and email address
- Form of the organization
- SBLC applicant’s capitalization
- The proposed geographic area of operation
- Identification of all officers, directors, managing partners, managing members, key employees, and individuals or entities that hold an equity/economic interest of at least 10%
- A business plan with:
a. Nature of operations
b. All sources of capital used to finance operations
c. Operations plan for the lender’s proposed loan activity and volume
d. Analysis of projected secondary market activities
e. If planning to acquire 7(a) loans, a written plan about the extent of acquisition activity and how the lender will manage the transition
- Documents associated with external financing expected to be undertaken
- A written statement from an authorized official certifying that the SBLC will not primarily finance Affiliate operations
- Most recent audited financial statements or the audited financial statements of the parent company
- Certified copy of resolution specifying the individual(s) or official(s) that granted authority to submit an application
- Certification that the proposed SBLC is in full compliance with federal, state, and local laws
- A written legal opinion of the SBLC applicant’s compliance with laws and authority to enter the transaction