April 13, 2021
C-Suite Wednesday — Key Takeaways From Yesterday’s SBA 7(a) Connect Call
During yesterday’s SBA Lender Connect call, the Office of Financial Assistance provided the lending community with an overview of recent changes to SBA 7(a) lending and SBA pandemic relief efforts.
Here are the key takeaways from the call:
- SBA 7(a) lending activity remains below pre-pandemic levels, with 17,946 loans approved YTD worth $10.7 billion. However, SBA 504 lending activity continues to increase with 4,436 loans approved YTD worth $3.6 billion.
- Assuming PPP funds remain available, the SBA will continue to accept new PPP applications until 11:50 PM EDT on May 31, 2021.
- The SBA is working on an application portal for the Restaurant Revitalization Fund (RRF). However, they have not yet announced when the program will be launched.
- The SBA is in the process of updating the contents of Form 159. As a result, lenders using the CAFS generated form will need to add the FIRS# and initial. Those using the OMB generated form will add the Location ID# and initial. This inconsistency will be fixed when the form is renewed.
- From December 27, 2020, through September 30, 2021, SBA 7(a) loans will receive a 90% guarantee and the SBA guaranty fee and lender’s annual service fee will be reduced to zero.
- The SBA has updated the Small Business Risk Portfolio scoring system to more accurately determine the risk of non-payment.
- The LPR model used to assess a Lender’s risk of purchases within their portfolio has been updated to improve accuracy.
- The PARRiS Benchmarks have had a minor update for the Leverage Ratio.
Join the Coleman Report Live Daily Show today at 1:00 PM EDT for a more in-depth discussion on the SBA 7(a) Quarterly Connect Call.