November 16, 2021
Hot Topic Tuesday – Form 912 Elimination, Form 159 Revision, and Coleman Report Live Announcement
The SBA Form 912 has been eliminated from the Character Determination process, and the SBA will no longer accept the form for processing. Lenders need to refer to the current SOP 50 10 (6) for the correct SBA form for processing. All Character Determination submissions and inquiries must be sent to OCACD@sba.gov, and any documentation must be submitted to ETRAN for secure, trackable processing. Every submission will need the full name of the subject individual.
Effective November 12, 2021, the SBA released the revised Form 159 with updated instructions and procedures. SBA lenders are required to use the revised Form 159 immediately for all new applications, but for applications that are already in process, lenders can use the previous version. The new form clarifies that a separate Form 159 must be completed for each application when an applicant is connected to multiple applications. The section regarding itemization and supporting documentation now requires a detailed explanation of the work performed, whether compensation was paid on an hourly rate or a percentage of the loan amount, and if paid on an hourly basis, the amount of the hourly rate and number of hours spent on each service performed.
Other minor changes to Form 159 include the removal of any references to the Fiscal Transfer Agent (Form159@colsonservices.com), replacing the FIRS number with the six-to-seven-digit Location ID, and increasing the estimated time spent completing the form from five minutes to twenty minutes.
The SOP 50 10 (6) has “revised the procedures for SBA Lenders to submit completed SBA Forms 159 and any required supporting documentation to SBA after disbursement of a 7(a) loan or funding of a 504 debenture.”
Coleman Report Live! Announcement
The Coleman Report Live! daily show will now occur as a weekly show on Mondays, and a Fraud Friday podcast will be released each Friday going forward. If there is any breaking news essential for an SBA lender to know, there will be a special show to keep lenders up to date.