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SBA Information Notice 5000-861002

Summary

SBA Information Notice, control no. 5000-861002, effective October 23, 2024, addressed to SBA employees and Certified Development Companies, announcing a new version of SBA Form 1244, Application for 504 Loans, to meet the requirements of SOP 50 10 7.1 and the Criminal Justice Final Rule published April 30, 2024 (89 FR 34094). The new form is effective immediately, with a 30-day grace period during which CDCs may use the previous version. Among the changes, the applicant must identify all Beneficial Owners of at least 20% of the applicant and at least 51% of its total Beneficial Owners, as defined in SOP 50 10 7.1.

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Full text

                      SBA Information Notice

TO: All SBA Employees and Certified                                                CONTROL NO.: 5000-861002
Development Companies
                                                                                   EFFECTIVE: October 23, 2024
SUBJECT: Updates to SBA Form 1244,
Application for 504 Loans




The purpose of this Notice is to announce the issuance of a new version of SBA Form 1244,
“Application for 504 Loans” to meet the requirements of the updated SOP 50 10 7.1 and the
Criminal Justice Final Rule published April 30, 2024 (89 FR 34094).

The new SBA Form 1244 is effective immediately; however, SBA will allow a 30-day grace
period for Certified Development Companies (CDC) to begin using the revised form. Until then,
CDC may use the previous version of the form. After the grace period ends SBA will no longer
accept the previous version.

Summary of Changes

The revision of SBA Form 1244, “Application for 504 Loans” includes the following changes:
   •   The Applicant must identify all Beneficial Owners of at least 20% of the Applicant and at
       least 51% of the total Beneficial Owners of the Applicant. “Beneficial Owners” is defined
       in SOP 50 10 7.1 as “A Person who owns a concern directly or indirectly through another
       entity. “Person” is defined in 13 CFR 120.10 as “any individual, corporation, partnership,
       association, unit of government, or legal entity, however organized.” This means that
       Applicants must identify, and Lenders must list in E-Tran, direct and indirect owners of
       the Applicant, whether a natural person or corporation, partnership, etc., to account for all
       owners (direct or indirect) as required.
   •   The Form has been restructured into two parts:
          o SBA 504 Borrower Information Form.
          o SBA 504 CDC Information Form.
   •   Formerly Section Three (Statements Required by Law and Executive Order and
       Certifications) is merged into SBA 504 Borrower Information Form under “Applicant
       Certification”.


PAGE 1 of 2                                                                                    EXPIRES: 10/1/25
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
   •   Questions regarding prior criminal history of an Applicant or an Associate of the
       Applicant have been revised to comply with the recently revised regulatory requirements
       (13 CFR 120.110) regarding the eligibility of an Applicant or any Associate of the
       Applicant who is currently incarcerated, serving a sentence of imprisonment imposed
       upon adjudication of guilty, or who is under indictment for a felony or any crime
       involving or relating to financial misconduct or a false statement (page 2, question
       number 4).
   •   SBA added questions related to payments of fees by the Applicant, types of ineligible
       businesses, and businesses owned by an SBA employee and/or its household member, by
       a Federal Employee, or by a Small Business Advisory Council or SCORE volunteer.
   •   SBA added an additional row for “Other Secured Debt to be Refinanced” in project
       funding sources and uses (page 9, within question number 8).

Questions
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local SBA
Field Office.




Alejandro C. Contreras
Acting Director
Office of Financial Assistance




PAGE 2 of 2                                                                                 EXPIRES: 10/1/25
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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File
2024-10_Information-Notice-5000-861002_Updates-to-SBA-Form-1244-Application-for-504-Loans-1.pdf
Size
201,135 bytes
SHA-256
10efda5a348cf89fe011d34ba0092bb9c93d1eeaa6d4f0ef886be81ae6653a3d
Our copy
2024-10_Information-Notice-5000-861002_Updates-to-SBA-Form-1244-Application-for-504-Loans-1.pdf
Original
www.sba.gov
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