What You Need to Know about SBA’s SOP 5010 —
Date: Wednesday, March 14, 2018
Time: 2:00 p.m. Eastern
Go to Registration and Payment | Download a Registration Form
The major rewrite of SBA’s Standard Operating Procedure includes numerous changes to SBA’s 7(a) and 504 lending programs effective January 1.
Coleman webinar instructor and former SBA Deputy Director of the Little Rock Commercial Loan Center, Lance Sexton will review and walk you through all the changes in this professional, concise presentation.
MANAGEMENT ISSUES, COMPLIANCE & LENDER RESPONSIBILITY
- Updated guidance on Agents, including Lender Service Providers
- Added the process for obtaining SBA’s prior written consent on portfolio transfers and loan participations
- Added the process for obtaining SBA’s prior written consent to secured credit and SBA securitization transactions, including a description of the basic conditions that a Lender must meet in order to securitize and minimum elements that SBA requires for securitizations
- CAIVRS Disclosure to Applicants
- New procedures for determining franchise eligibility
- New guidance regarding affiliation control based on management agreements
- New procedures for businesses with a religious affiliation
- Revised procedures for businesses with an associate with poor character/912 issues
- New rules for consumer and marketing cooperatives
- Revised rules for businesses providing prurient sexual material
- New guidance for non-US citizens
- Finance change of ownership with EPCs
- Added minimum equity requirements for certain 7(a) loans — Start-Up businesses and Changes of ownership
- Removed the requirement for 25% equity injection when intangibles exceed $500,000 in change of ownership loans.
- Provided direction that SBA and/or the Lender, for loans processed using delegated authority, may require a personal guaranty, regardless of ownership interest, if any, when deemed necessary for credit or other reasons
- Clarified that Lenders must consider seller debt as debt in all applications
- Increased the percentage of loan proceeds that may be used to purchase land from 20 percent to 33 percent for the Builder’s CAPLine.
- Clarified the eligible uses of loan proceeds for farm enterprises.
- Expanded EWCP credit underwriting standards
- Updated EWCP collateral requirements
- Revised policies regarding debt refinancing for SBA Express, Export Express, and EWCP Lenders.
- Clarified the Loan Program Requirements for change of ownership loans involving Employee Stock Ownership Plans or equivalent trusts.
- Updated eligible uses of proceeds for Export Express.
- Clarified guidance regarding maximum guaranty amounts for combination of 7(a) and 504 loans.
- Revised the requirements for SBA Express Revolving loans to include a term-out period.
- Clarified EWCP maturities for Single Transaction-Specific loans.
- Clarified that the Note terms for variable interest rate loans must include the first adjustment date by either stating a specific date, or using the final disbursement date to determine the timing.
- Clarified the guidance regarding allowable fees for packaging and other services.
- Updated the guidance concerning disclosure of fees and Lender expenses, including SBA Form 159
- Updated environmental policy guidance to reflect current federal requirements and added guidance related to the release of rights to indemnification from SBA/Lender
- Changed standard for business financial statements to be dated within 120 days of submission to SBA
- Guidance when collateral is listed in the National Register of Historic Places
- Revised the guidance on how and when the guaranty fee must be paid for loans with short term maturities and the circumstances under which a refund will be provided to the Lender.
- Consolidated and simplified the guidance on the fees a Lender may charge an Applicant to conform to regulatory changes made in the Final Rule
- Added guidance on the process for selling loans in the Secondary Market
- Expanded the list of actions that do not require prior approval by SBA. Lender may use E-Tran Servicing to notify SBA of those actions
- Added guidance that Lenders are required to report information to the appropriate credit reporting agencies whenever they extend credit through an SBA loan
- Added guidance that SBA and the PLP-EWCP lender may determine certain requirements for foreign accounts receivable, including advance rates and/or use of control accounts for asset based EWCP loans
Lance Sexton served as Deputy Director of the SBA Little Rock Commercial Loan Servicing Center managing the Servicing of SBA Loans, the liquidation of SBA Express Loans, and the Liquidation of SBA 504 loans in a 24 state area. Lance has 30 years of experience in the origination, servicing, and liquidation of SBA Loans, ten years of experience directly managing portfolios of SBA loans that are both performing and nonperforming, and six years of experience as a small business owner.
Moderated by Bob Coleman, the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the founder of the Coleman Publishing, a publisher of books, data, newsletters and reports and a producer of conferences, webinars and training videos — to help finance professionals become small business lending experts.
Bob is the nationally recognized expert on small business financing. He has appeared frequently on Fox Business News, NPR and other numerous media outlets. He is sourced by all print media including the Wall Street Journal and Bloomberg. He is a frequent speaker about small business lending throughout the US and EU. Bob has a BA in Medieval History from the University of California Santa Barbara and a MBA in Real Estate Finance from the University of Southern California.
His passion is getting capital to Main Street and Rural American small business.
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