Procedural Notice 5000-847482 Revision to SBA Procedural Notice 5000-846991 for the 7(a) Loan Program
Summary
SBA Procedural Notice, Control No. 5000-847482, effective May 26, 2023, to SBA employees and 7(a) lenders, revising Procedural Notice 5000-846991 for the 7(a) Loan Program. The earlier notice, published May 9, 2023, implemented the removal of the requirement for a loan Authorization under 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) in the 7(a) and 504 Loan Programs. This notice revises it for the 7(a) program.
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Full text
SBA Procedural Notice
TO: All SBA Employees and 7(a) Lenders CONTROL NO.: 5000-847482
SUBJECT: Revision to SBA Procedural Notice EFFECTIVE: May 26, 2023
5000-846991 for the 7(a) Loan Program
The purpose of this notice is to revise SBA Procedural Notice 5000-846991 (Notice) published
May 9, 2023, which implemented 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,
SBA 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, through July 31, 2023,
Lenders should continue using the procedures in SOP 50 10 6, Part 2, Section B, Chapter 5,
Paragraph A., which include instructions for submitting to SBA a Loan Authorization generated
using the existing Boilerplate. SBA Express and Export Express Lenders may use the Boilerplate
or the abbreviated version created for those programs.
SBA Procedural Notice 5000-846607, Implementation of the Final Rule on Affiliation and
Lending Criteria for the SBA Business Loan Programs, remains in effect. Therefore, Lenders
may complete the Loan Authorization under the procedures stated in Procedural Notice 5000-
846607, e.g., Lenders may modify the Authorization Boilerplate to conform with the new
requirements for equity and equity injection.
Questions
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 1 of 1 EXPIRES: 5/1/24
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
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