This spring the Small Business Administration (SBA) published two new rules impacting the SBA 504 program. SomerCor President and CEO, Manuel Flores, testified before the House Small Business Committee on behalf of the National Association of Development Companies (NADCO) regarding these rule changes. Listed and linked below are the key documents outlining these program updates:

  • SOP 50 10 7 is effective Aug. 1, 2023, and will apply to all  504 applications received by SBA on or after that date. This Standard Operating Procedure document contains SBA’s policies and procedures governing the 504 loan program.
  • SBA Procedural Notice 5000-846607 on the implementation of the SBA’s Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs (88 FR 21074, effective May 11, 2023). Affiliation is now generally defined as 50% ownership in another entity with a similar NAICS code prefix.
  • SBA Procedural Notice 5000-846991 to implement the removal of the requirement for a Loan Authorization for SBA 504 loans 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).
    • Regarding the loan authorization for SBA 504 loans:
      • The Loan Authorization is formally replaced by a Terms and Conditions document
      • SBA will continue to require and provide a Terms and Conditions document that can be generated from within SBA’s ETRAN system
      • There is no change to the content of the Terms and Conditions document vs. the Loan Authorization at this time

The SomerCor team is closely following these regulatory changes. We will provide updates to our lending partners with any new information.

 
Margaret GriffinEric BaconDarin GehrkeElisabeth WilliamsBrian Comiskey
EVP, Chief Loan OfficerSVP, Loan OfficerSVP, Loan OfficerSVP, Loan OfficerEVP, Chief Credit Officer
mgriffin@somercor.comebacon@somercor.comdgehrke@somercor.comewilliams@somercor.combcomiskey@somercor.com
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