SBA Hot Topic Tuesday: 7(a) Loan Authorization Receives Stay of Execution Until August 1, 2023
May 30, 2023
Bob Coleman
Publisher
As part of the PR cleanup SBA is undertaking after Congress’ recent bipartisan criticism SBA is canceling its cancellation of the loan authorization.
Due to, “accommodating systems updates, for the 7(a) Loan Program only” lenders must reverse course and prepare authorizations beginning last Friday, May 26th.
The notice is attached and summarized as follows:
● The revised notice removes the requirement for a loan authorization in the 7(a) Loan Program effective August 1, 2023.
● Until July 31, 2023, lenders should continue using the procedures in SOP 50 10 6, Part 2, Section B, Chapter 5, Paragraph A, for submitting loan terms and conditions to receive a loan guaranty.
● SBA Express and Export Express Lenders may use the Boilerplate or the abbreviated version created for those programs.
● Lenders may complete the Loan Authorization under the procedures stated in Procedural Notice 5000-846607, which remains in effect.
● The Notice also states that SBA is removing the requirement for a Loan Authorization and will instead rely on the use of the terms and conditions of the loan application as submitted by the SBA Lender into E-Tran for both the 7(a) and 504 Loan Programs effective May 12, 2023.