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.

Click here for a copy of the SOP 50 56 1.