Information Notice 5000-845184, FY 2023 Updated Fee Schedule for SBA Oversight of 7(a) Lenders
Summary
SBA Information Notice, Control No. 5000-845184, to SBA employees and 7(a) lenders, announcing the FY 2023 updated fee schedule for SBA oversight of 7(a) lenders. It states that SBA's Office of Credit Risk Management is updating its 7(a) lender oversight fees. SBA is authorized to charge 7(a) lenders fees to cover the costs of monitoring, reviews, examinations and other lender oversight activities, citing 15 USC 634(b)(14) and 13 CFR 120.1070.
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SBA Information Notice
TO: All SBA Employees and 7(a) Lenders CONTROL NO.: 5000-845184
SUBJECT: FY 2023 Updated Fee Schedule for EFFECTIVE: March 31,2023
SBA Oversight of 7(a) Lenders
Introduction
The purpose of this Notice is to announce that SBA’s Office of Credit Risk Management (OCRM)
is updating its 7(a) Lender oversight fees.
Background
SBA is authorized to charge 7(a) Lenders fees to cover the costs of monitoring, reviews,
examinations, and other lender oversight activities. See, 15 USC 634(b)(14); 13 CFR 120.1070;
and SOPs 50 53 2, Ch. 5 and 50 10 6, Part 1, Section A, Ch. 1. In accordance with this authority,
SBA charges 7(a) Lenders fees for monitoring, including the quarterly off-site/monitoring reviews
conducted through the Loan and Lender Monitoring System (L/LMS). SBA also charges 7(a)
Lenders fees to cover the costs of the following reviews: (1) Desktop/Analytical Reviews; (2)
Targeted Reviews; (3) Limited Scope Reviews; (4) Full Scope Reviews; (5) Delegated Authority
Reviews; and (6) Other Reviews (e.g., Agreed Upon Procedures Reviews, Secondary Market
Reviews). In addition, SBA’s oversight fees include costs related to Other Lender Oversight
Activities (e.g., technical assistance and analytics, a portion of OCRM salaries for 7(a) Lender
oversight activities, supervision and enforcement activities, and similar costs to support SBA’s
lender oversight program).
These oversight fees are based on SBA’s costs. The fees for monitoring (e.g., L/LMS and
subscription services), Other Lender Oversight Activities, and Delegated Authority Reviews are
assessed annually based on each 7(a) Lender’s portion of the total dollar amount of 7(a) guarantees
in SBA’s portfolio or, as applicable, the relevant portfolio segment the activity covers. For
purposes of this calculation, a Lender’s portfolio size is determined as of the end of the prior fiscal
year. (Where the costs that SBA incurs for the oversight activity are specific to a particular 7(a)
Lender, such as for the Desktop/Analytical Reviews, Targeted Reviews, Limited or Full Scope
Reviews, and Other Reviews, the Lender is assessed a fee based on SBA’s costs and is billed
following the completion of the review.)
PAGE 1 of 2 EXPIRES: 3-1-24
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
Oversight Fees for FY2023
For FY 2023, the annual fee for monitoring and Other Lender Oversight Activities will be $181.09
(for SBA Supervised Lenders) and $186.11 (for Federally Regulated 7(a) Lenders) for every $1
million in 7(a) guaranteed dollars a 7(a) Lender has outstanding. The charge for the Federally
Regulated 7(a) Lenders is slightly higher because it includes the costs associated with oversight
tools that are not applicable to SBA Supervised Lenders. For FY 2023, the additional fee for
Delegated Authority Lenders is approximately $12.79 for every $1 million in 7(a) guaranteed
dollars a delegated Lender has outstanding. This fee covers the costs of Delegated Authority
Reviews and is assessed annually based on each delegated 7(a) Lender’s portion of the total dollar
amount of 7(a) guarantees in the SBA loan portfolio for all delegated 7(a) Lenders as of the end
of the prior fiscal year. For this calculation, 7(a) guaranteed dollars does not include loans
originated under the Paycheck Protection Program (PPP). If SBA decides to charge a separate fee
for PPP oversight, SBA will issue further notice.
Updated Fee Schedule
The Fee Schedule below updates the annual oversight fee that SBA will charge 7(a) Lenders to
cover the costs of monitoring, Other Lender Oversight Activities, and Delegated Authority
Reviews, during Fiscal Year 2023 (October 1, 2022 through September 30, 2023). SBA will bill
each 7(a) Lender for the amount owed on an annual basis.
Previous Previous Revised Revised
Fees Fees* Fees*
Charge per $ Million Fees Federally Federally
SBA Supervised SBA Supervised
Regulated 7(a) Regulated 7(a)
Lenders Lenders
Lenders Lenders
Monitoring and Other Lender
Oversight Activities $161.16 $166.39 $181.09 $186.11
(For non-delegated lenders)
Monitoring, Other Lender Oversight
Activities, and Delegated Authority $174.27 $179.50 $193.88 $198.90
Review
(For delegated lenders)
*The primary reason for the increased fee in 2023 is the increased cost of the contract for the L/LMS.
Questions
Questions may be directed to Nichole Hinds, Supervisory Program Analyst, Office of Credit Risk
Management at creditriskmgt@sba.gov.
_________________________
Susan E. Streich
Director
Office of Credit Risk Management
PAGE 2 of 2 EXPIRES: 3-1-24
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
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