Takeaways from SBA 7(a) Quarterly Connect Call

April 23, 2025

Bob Coleman
Founder & Publisher

Takeaways from SBA 7(a) Quarterly Connect Call

My takeaways from yesterday’s SBA quarterly connect call:

First, congratulations to SBA for improving its production values. It was an excellent choice to have Administrator Kelly Loeffler lead off, giving an overview and explanation of why the changes were implemented. You don’t have to agree with the changes, but at least you now have an understanding of the assumptions resulting in the new SOP.

Welcome back to Diana Seaborn in her position as Deputy Associate Administrator. I thought her description of loans less than $500k being approved by “score and go is being rolled back” was concise and succinctly addressed the agency’s concerns.

A shout out to the new Associate Administrator of Capital Access, Thomas Kimsey. I always appreciate hearing a person’s background and what defines their motivation and passion for our lending niche. Your description of your background in rural Georgia and the tribute to your dad was a nice touch.

Susan Steich and Diana Seaborn will be assuming the secondary market paperwork approvals with the retirement of David Parrish.

Lenders were reminded to check and reconfirm wiring instructions, as several lenders have become victims of disbursing loan proceeds to URL look-alike scammers.

PLP lenders can no longer submit loans GP when they have a question on eligibility. SBA will have a new email address for PLP lenders to aid them in eligibility determination, effective June 1.

The credit elsewhere test is back. The lender will have to determine if some or all of the loan is not available for 20% or more owners.

And, the Franchise Directory will be updated and available to lenders.

If hazard insurance is not available for assets pledged as collateral greater than $50,000, the loan cannot be approved (SBA Express is exempt).

Lance Sexton’s SOP webinar training will be offered on two dates — April 29th and May 22nd. For $795 your entire staff may attend either or both dates.

Watch the recording of yesterday’s call here: https://www.youtube.com/live/y29C-tbYOYQ?si=S_NIOhsp0fu8_-PN