Lenders May Use the New Form 1086

August 15, 2024

Delaney Sexton
Contributing Editor

Lenders May Use the New Form 1086

SBA Form 1086 (12-23)

Effective 8/1/2024, Lenders may use Form 1086 (12-23) to sell the guaranteed portion of an SBA 7(a) in the secondary market.  As a reminder, all sale documentation sent to the FTA’s SettlementExpress@sba.gov inbox on or after 9/3/2024, must include the December 2023 version for the sale of the loan in the secondary market to continue. Prior versions of Form 1086 will be returned to sender for proper resubmission. No exceptions will be provided to this deadline.  Click here to read more about the format and content changes to Form 1086.

SBA Form Instructions: 1086 Field Descriptions

SBA Form 1086 instructions have been updated to comply with the new December 2023 version.  Revised guidance includes completing the Lender Name and Address based on the Lender’s Head Office Location ID in SBA’s Partner Information Management System (PIMS) and completing the Borrower Name and Address with the Loan Name and Project Address respectively in CAFS, ETRAN Servicing.  Click here to read the complete form instructions.

FTA Servicing Fee (FTA Fee)

Effective for all 7(a) loans sold (based on warranty date) on or after 10/1/2024, the FTA servicing fee recorded on SBA Form 1086 will be 0.145% (14.5 basis points) of the guaranteed portion of the outstanding balance of the loan.  The warranty date is the date of settlement of the sale transaction as determined by the SBA and FTA.  Click here to read the entire Information Notice.