Procedural Notice: Extension of Temporary Changes to 4506 Tax Transcript Verification Procedures
Summary
SBA Procedural Notice, Control No. 5000-810037, effective April 22, 2021, to SBA employees, 7(a) lenders and certified development companies. It extends through June 30, 2021 the temporary changes to 4506 tax transcript verification procedures during the COVID-19 emergency. The extended guidance, set out in Procedural Notice 5000-20016, relates to the verification of financial information by SBA lenders, including 7(a) lenders and CDCs.
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Full text
SBA Procedural Notice
TO: All SBA Employees, 7(a) Lenders, and CONTROL NO.: 5000-810037
Certified Development Companies
SUBJECT: Extension of Temporary Changes to EFFECTIVE: April 22, 2021
4506 Tax Transcript Verification Procedures during
the COVID-19 Emergency through June 30, 2021
The purpose of this Notice is to extend the temporary procedural guidance relating to the
verification of financial information for SBA Lenders (including 7(a) Lenders and Certified
Development Companies (CDCs)) set forth in Procedural Notice 5000-20016 through June 30,
2021.
Due to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic, the Internal Revenue
Service (IRS) continues to experience delays in in some of its services. SBA recognizes that
delays in receipt of tax transcripts will affect the ability of SBA Lenders to comply with the Loan
Program Requirements to verify financial information of the Borrower prior to the first
disbursement of loan proceeds (for a 7(a) loan) and prior to submitting the closing documents to
SBA Counsel (for 504 loans).
In an effort to minimize the impact of possible IRS delays and to ensure that loan proceeds are
disbursed to small businesses as soon as possible, SBA is extending the temporary procedural
guidance relating to the verification of financial information for SBA Lenders through June 30,
2021. This temporary guidance was first set forth in Procedural Notice 5000-20016 and replaced
the guidance related to the timing of verification of financial information that is currently
described in SOP 50 10 6, Part 2, Section A, Chapter 6, Paragraph B. Through June 30, 2021, all
SBA Lenders must follow the procedures set forth below to verify the Applicant’s financial
information provided in connection with a 7(a) or 504 loan application:
If the SBA Lender has submitted IRS Form 4506 C to the IRS and has not received a
response from the IRS, and has not received the requested tax transcripts within 10
business days, the SBA Lender:
i. May proceed to close and disburse the loan;
ii. Must follow up with the IRS to obtain and verify the tax data by submitting IRS Form
4506 C or by resubmitting a copy of the IRS Form 4506 C to IRS with the notation
“Second Request” in the top right hand side, as applicable;
PAGE 1 of 2 EXPIRES: 4/1/22
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
iii. Must document its file with a dated copy of the submission/second submission, as
applicable; and
iv. Must perform the verification and resolve any significant differences discovered as
soon as the IRS response is received, but in no event later than 6 months from the date of
the Note.
Under current circumstances, if an SBA Lender is unable to submit the 4506 C to the IRS, the
SBA Lender must obtain a certification from the Applicant that the tax information provided to
the SBA Lender is identical to what was submitted to the IRS.
SBA appreciates your patience as we navigate through numerous different challenges in this very
rapidly changing environment.
If you have any questions regarding this notice, please contact your local SBA field office or the
service centers. To locate your local office or service center, please go to
https://www.sba.gov/about-sba/sba-locations.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 2 of 2 EXPIRES: 4/1/22
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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