May 19, 2023
THIS JUST IN – Loan Authorization Removal is Delayed Until August 1st
Yesterday evening, the SBA sent an email announcing the postponement of the Loan Authorization removal which will now be effective on August 1, 2023:
“SBA is delaying the implementation of the sunset of the 7(a) Authorization procedures until Aug. 1.
On May 9th, SBA published Procedural Notice 5000-846991, “Implementation of Removal of the Loan Authorization…” to implement the removal of the requirement for a Loan Authorization in accordance with the Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization) (88 FR 21890, effective May 12, 2023) (Rule) in the 7(a) and 504 Loan Programs.
In the Notice, SBA stated that, effective May 12, 2023, for both the 7(a) and 504 Loan Programs, it 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.
In order to accommodate system updates, for the 7(a) Loan Program only, SBA is revising the Notice to make the removal of the loan Authorization effective August 1, 2023. For the purpose of submitting the terms and conditions to SBA to receive a loan guaranty, Lenders should continue using the procedures in SOP 50 10 6, Part 2, Section B, Chapter 5, which include an Authorization generated using the existing Boilerplate through July 31, 2023.
The E-Tran process for the new terms and conditions sheet is not yet working – please do not try to generate a terms and conditions sheet prior to August 1.
SBA has an official notice in clearance, but it will take several days before we can get it published. To be clear – The other Procedural Notice that we posted the same day (Procedural Notice 5000-846607) on the implementation of the Affiliation Rule remains in effect.”