SBA Hot Topic Tuesday – SBA Releases the First Ever SOP 50 56 1
June 27, 2023
Delaney Sexton
Contributing Editor
SBA Hot Topic Tuesday – SBA Releases the First Ever SOP 50 56 1
Set to take effect August 1, 2023, SBA published the new SOP 50 56 1 for Lender and Development Company Loan Programs. On Thursday July 13th at 2 p.m. Eastern, Coleman will hold the “Managing Compulsory SBA Lender Regulations” webinar to provide lenders with a comprehensive overview of the new SOP.
Here are the contents of the SOP 50 56 1:
Section A – 7(a) Lender Participation
Chapter 1: Lender Participation in the 7(a) Loan Program
- This chapter explains the process of becoming a 7(a) lender, the responsibilities of being a 7(a) lender, the oversight of 7(a) lenders, and Delegated Authority in the loan program.
Chapter 2: Small Business Lending Companies
- The chapter gives information about SBLC requirements, the process of acquiring an SBLC license, and the new Community Advantage SBLCs.
Chapter 3: Lender Financing and Operations
- This chapter includes explanations of loan transfers, loan participation sales, lender loan reporting, and the secondary market.
Section B – Certified Development Company (CDC) Participation
Chapter 1: CDC Participation
- The chapter describes the application process to become certified as a CDC, CDC requirements, character determinations, types of authorities, and mergers.
Chapter 2: SBA Oversight of CDCs
- The final chapter outlines all the necessary information about SBA’s oversight of CDCs.