Hot Topic Tuesday – SBA Update from 2020 Lenders Connect Conference 

August 25, 2020

By: Caity Roach (née Witucki)
Contributing Editor, Hot Topic Tuesday

Hot Topic Tuesday – SBA Update from 2020 Lenders Connect Conference 

Last week, at the Lenders Connect 2020 Virtual SBA Lending Conference, a panel of SBA staff members provided an update on current and upcoming SBA projects. According to Deputy Associate Administrator, Bill Briggs, the SBA is currently focusing on providing lenders with additional PPP forgiveness guidelines and preparing for congress to pass additional coronavirus relief for small businesses. 

Here are all of the current SBA projects mentioned at the conference:

• The SOP 50 10 6 is with the SBA Administrator and executive team awaiting final review. Changes within the SOP include updated forms, a streamlined FBI character check process, and an updated environmental issue review.
  
  
• On August 7, 2020, the SBA released a procedural notice addressing the underwriting process during the COVID-19 pandemic.
  
  
• The Office of Financial Assistance (OFA) is working on implementing the Veterans permanent fee waiver which was included in the CARES Act.
  
  
• OFA is also working to implement SBA 504 equity injection reductions during the recession.
  
  
• The Office of Credit Risk Management (OCRM) is working with the U.S. Treasury to establish lender onboarding programs.
  
  
• OCRM has completed 170 supervision and enforcement actions and 46 debarments this year through June 30; putting them on track to complete 708 SBA supervised exams in 2020.
  
  
• Currently, OCRM is working on a Loan Review Tool (LRT) to complete targeted loan reviews and transitioning microlender intermediary oversight to a virtual platform.
  
  
• OCRM is expanding its staff in preparation for PPP and regular program oversight.
  
  
• The Office of Performance and System Management (OPSM) is adapting to new ways of handling 1502s, servicing actions, data releases, and lender onboarding. 
  
• OPSM has brought on a third party to create a cloud-based system for handling PPP forgiveness so that ETRAN does not crash.
  
  
• OPSM is also incorporating new AI tools for PPP forgiveness reviews, which also may be used for origination in the future.
  
  
• Finally, the Office of International Trade announced that it anticipates a new working capital fee structure in FY 2021, pending Congressional budget approval.

For more information about the Lenders Connect Virtual Conference, please check: https://smallbusinesslendersconnect.com/