SBA 7(a) Connect Call Hot Topics
July 10, 2024
Delaney Sexton
Contributing Editor
SBA 7(a) Connect Call Hot Topics
Yesterday, SBA held their 7(a) Connect Quarterly Update call. Here are some of the key topics they discussed:
- SBA Form 1919/Criminal Justice Rule: Lenders have a 30-day grace period from the date of publication on SBA’s website but should start transitioning to using the new SBA Form 1919. They discussed the new criminal justice rule. It is a regulatory requirement and may not be waived – no policy exceptions. Lenders may conduct more thorough criminal background checks as long as it complies with relevant laws.
- 7(a) Working Capital Pilot Program: The program will go live August 1st. A notice in the Federal Register should be published this week or next week, and a program guide will be posted after the Federal Register Notice.
- SBA Form 1086: SBA reviewed the reorganization of data tables with no duplication of data points, strengthened language, clarifications, and effects from the Authorization’s elimination.
- Section 1071 of the Dodd-Frank Act requires lenders to collect detailed demographic data about borrowers and report it to the CFPB. The implementation date will depend on how many loans the lender makes per year with the earliest implementation date in 2025.
- Corporate Transparency Act of 2021 “Beneficial Ownership” requires most small businesses to report Beneficial Ownership (as defined by FinCEN, not SBA) to the Department of Treasury. SBA does not have any role in the reporting or implementation process, but they will be holding a webinar on July 24th at 2 pm Eastern to help with providing information.
- Compliance codes – 4363 code: resolve by emailing 4363resolution@sba.gov, and 2087 code: resolve by emailing 7aQuestions@sba.gov for 7(a) or 504Questions@sba.gov for 504.
- Fiscal Year 2025 7(a) fees notice: The notice is through clearance but is being held. It will be released together with the 504 fees notice. SBA said to expect this in the next few weeks.