SBA Policy Notice 5000-816739: Implementation of ALP Express Temporary Delegation of Authority Established in the Economic Aid Act
Summary
SBA Policy Notice, Control No. 5000-816739, effective August 17, 2022, to SBA employees and certified development companies, on implementing the ALP Express temporary delegation of authority established in the Economic Aid Act. It recalls that on June 27, 2022 SBA published an interim final rule implementing the authority that section 328(b) of the act temporarily gives CDCs in the Accredited Lenders Program for 504 loans of not more than $500,000 to borrowers outside industries with a high rate of default. It notes a related Federal Register notice of July 14, 2022 on industries with a high rate of default.
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Full text
SBA Policy Notice
TO: All SBA Employees and Certified CONTROL NO.: 5000-816739
Development Companies
EFFECTIVE: August 17, 2022
SUBJECT: Implementation of ALP Express
Temporary Delegation of Authority Established in
the Economic Aid Act
On June 27, 2022, SBA published an interim final rule in the Federal Register, Temporary 504
Express Loan Authority for Certified Development Companies Participating in the Accredited
Lenders Program, that implements the additional authority that section 328(b) of the Economic
Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act temporarily provides to Certified
Development Companies (CDCs) participating in the Accredited Lenders Program (ALP) with
respect to 504 loans that are not more than $500,000 and that are not made to a borrower in an
industry with a high rate of default. (Vol. 97, No. 122 RIN 3245-AH74) On July 14, 2022, SBA
also published a notice in the Federal Register, Temporary 504 Express Loan Authority for
Certified Development Companies Participating in the Accredited Lenders Program – Industries
with a High Rate of Default, that identifies industries with a high rate of default to inform ALP
CDCs which 504 loans are not eligible for processing as ALP Express Loans. (Vol. 87, No. 134)
In order to fully implement this temporary delegation of authority to ALP CDCs to make ALP
Express Loans, certain Loan Program Requirements (as defined in 13 CFR 120.10) must be
revised, including provisions in SOP 50 10 6, Lender and Development Company Loan
Programs, SOP 50 55, 504 Loan Servicing and Liquidation, and SBA Form 1244, Application
for 504 Loan.
The purpose of this Notice is to advise all SBA employees and CDCs that SBA is issuing the
attached Temporary 504 Express Loan Authority for Certified Development Companies
Participating in the Accredited Lenders Program Guide (“Guide”) to describe the new temporary
authority granted to ALP CDCs. The Guide includes guidance that ALP CDCs must follow with
respect to ALP Express Loans and a revised servicing matrix as an appendix. The Guide is
hereby incorporated into SOP 50 10 6 as Appendix 13 and SOP 50 55 as Appendix 1. SBA
Form 1244 has already been revised to incorporate the necessary changes for ALP Express loan
authority.
PAGE 1 of 2 EXPIRES: 8/1/23
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
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Isabella Casillas Guzman
Administrator
Attachment
PAGE 2 of 2 EXPIRES: 8/1/23
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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