SBA Procedural Notice 5000-842905: Update of ALP Express Guide with new Delegations of Authority for ALP Express Loan Modifications
Summary
SBA Procedural Notice, Control No. 5000-842905, effective January 10, 2023, to SBA employees and certified development companies, updating the ALP Express Guide with new delegations of authority for ALP Express loan modifications. It recalls that on August 17, 2022 SBA published Policy Notice 5000-816739, announcing the implementation of the authority that section 328(b) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act temporarily gave to CDCs in the Accredited Lenders Program. The notice adds delegations of authority for modifying ALP Express loans.
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Full text
SBA Procedural Notice
_______________________________________________________________________________
TO: All SBA Employees and Certified CONTROL NO.: 5000-842905
Development Companies
SUBJECT: Update of ALP Express Guide EFFECTIVE: January 10, 2023
with new Delegations of Authority for
ALP Express Loan Modifications
On August 17, 2022, SBA published Policy Notice 5000-816739 announcing the implementation
of the additional authority that section 328(b) of the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act temporarily provided to Certified Development Companies (CDCs)
participating in the Accredited Lenders Program (ALP) for eligible 504 loans.
The purpose of this Notice is to advise all SBA employees and CDCs that SBA has revised the
Temporary 504 Express Loan Authority for Certified Development Companies Participating in
the Accredited Lenders Program Guide (“ALP Express Guide”) to expand servicing authority for
ALP CDCs in E-Tran with respect to certain loan modifications (also known as 327 Actions).
The revised ALP Express Guide provides new details on the conditions under which an ALP
CDC may use its ALP Express delegated authority for these servicing actions.
The ALP Express Guide is revised by renumbering current Paragraph IV.B Obtaining SBA
Loan Number and Eligibility Determination from SLPC as Paragraph IV.C and inserting a
new Paragraph IV.B that reads as follows:
B. Delegated Servicing Action Authority for ALP Express Loans
ALP CDCs may use their ALP Express delegated authority to perform the servicing actions listed
below. The ALP CDC is responsible for making these loan modifications (also known as 327
Actions) in E-Tran for ALP Express Loans.
PAGE 1 of 2 EXPIRES: 12/1/23
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
(1) An ALP CDC may correct an error in the street address of a property pledged as collateral
for the ALP Express Loan. An ALP CDC may not change the location of the Project
Property using ALP Express delegated authority.
(2) An ALP CDC may change a Third Party Lender or Interim Lender for an ALP Express
Loan provided that the lender is a financial institution that is regulated by the Federal
Financial Institution Regulators (i.e., the Federal Deposit Insurance Corporation, the Federal
Reserve Board, the Office of the Comptroller of the Currency, the National Credit Union
Administration, and the Farm Credit Administration) or by a state financial institution
regulator with supervisory and examination authority satisfactory to SBA.
(3) An ALP CDC may add inadvertently omitted co-Borrowers (without changing the
ownership) and guarantors for ALP Express Loans.
(4) An ALP CDC may reduce the amount of standby debt for ALP Express Loans before 504
loan closing.
(5) An ALP CDC may make de minimis increases to Use of Proceeds amounts on an ALP
Express Loan provided that the Total Project Costs do not increase. An ALP CDCs may
reduce the project size under ALP Express delegated authority with no limitations.
However, if these changes necessitate modification or deletion of collateral that was
originally approved, the entire action must be submitted to SLPC for prior review and
approval. Please see Appendix 2 for examples of when an ALP CDC must use ALP
Express delegated authority and when the ALP CDC must request review and approval
from SLPC to change Use of Proceeds amounts.
Questions
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Patrick Kelly
Associate Administrator
Office of Capital Access
PAGE 2 of 2 EXPIRES: 12/1/23
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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