SBA Procedural Notice 5000-856893
Summary
SBA Procedural Notice, control no. 5000-856893, effective May 2, 2024, addressed to SBA employees, Certified Development Companies and SBA resource partners requiring 504 background check clearance. It revises SOP 50 56 1 and SBA Form 1081 to update vetting under the 504 corporate governance requirements. These replace the procedures in SOP 50 56 Page 67, Section B. The notice says requirements for CDC managers, officers, Board members, staff and contractors now match those for loan committee members, so paragraphs B.1 and B.2 are combined, and it changes how resource partners use the form.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
SBA Procedural Notice
TO: SBA Employees, Certified Development CONTROL NO.: 5000-856893
Companies, and SBA Resource Partners Requiring
504 Background Check Clearance EFFECTIVE: May 2, 2024
SUBJECT: Update to SOP 50 56 1 related to Form
1081 CDC Character Determinations
The purpose of this Notice is to revise SOP 50 56 1 and SBA Form 1081 to update 504 corporate
governance resource partner vetting. Although other SBA program offices also use SBA Form
1081, SBA is only updating the resource partner clearance procedures that specifically relate to
the 504 corporate governance requirements.
As of the effective date of this notice, SOP 50 56 Page 67, Section B is replaced with the
procedures set forth in this notice. Note that the requirements for CDC managers, officers,
Board members, CDC staff, and contracts are now the same as for CDC loan committee
members (collectively “Subject Individuals”). Therefore SOP 50 56 1, Section B, Chapter 1,
ParagraphsB.1 and B.2 are combined into one subparagraph. The other significant change is that
resource partners will only be required to undergo an FBI fingerprint background check if they
answer “Yes” to questions 10a, 10b, 10c, 11a or 11b on SBA Form 1081. The other guidance
remains the same but is included here since the subparagraphs are being renumbered.
Consequently, SOP 50 56 1, Section B, Chapter 1, Paragraph B. is deleted in its entirety and
replaced with the following:
“B. FORM 1081 CDC CHARACTER DETERMINATIONS
SBA uses the character determination process to clear individuals (i.e., CDC manager, officer,
Board member, CDC staff, loan committee member) to participate in a CDC’s activities.
Individuals may not begin activities at the CDC until the clearance process is complete. When
fingerprints are required, the clearance process is complete when SBA provides written
notification to the CDC. Once an individual is cleared by SBA, the clearance does not need to be
renewed as long as the individual maintains uninterrupted service with the same CDC, and the
CDC or SBA has no indication that the individual would need to update SBA Form 1081 due to
a change in circumstances.
PAGE 1 of 3 EXPIRES: 5-1-25
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
For the protection of personally identifiable information (PII) such as names, tax identification
numbers, addresses, financial information, etc., the CDC must limit access to PII to only those
who have been cleared through this process.
1. The CDC must obtain the SBA Form 1081 for each new: CDC manager; officer; Board
member; CDC staff, including contractors who are providing services to the CDC under a
professional services contract that requires prior SBA approval under 13 CFR 120.824; and
Loan Committee members (Subject Individuals). The CDC must submit to SBA the SBA
Form 1081 for all Subject Individuals with the exception of Loan Committee members.
However, the CDC must also submit to SBA the SBA Form 1081 for each new Loan
Committee member who responds “yes” to question numbers 10a, 10b, 10c, 11a, or 11 b on
SBA Form 1081.
2. For Subject Individuals responding “yes” to question numbers 10a, 10b, 10c, 11a, or 11b on
SBA Form 1081, the CDC’s SBA Form 1081 submission must also include any supporting
documentation related to question 10a, 10b, 10c, 11a, or 11b. The Subject Individual must
also undergo an FBI Fingerprint Background Check.
3. For those who answer “no” to question numbers 10a, 10b, 10c, 11a, or 11b, the CDC must
retain the signed SBA Form 1081 in the CDC’s files. No FBI Fingerprint Background Check
is required.
4. The following are not required to be cleared and do not have to complete SBA Form 1081:
a. Attorneys providing legal services in connection with loan liquidation or litigation; and
b. Contractors providing services under co-employment contracts for payroll and employee
benefits (although the CDC staff co-employed through these contracts are not exempt).
5. FBI Fingerprint Background Check: When required, the Subject Individual must provide one
of the following:
a. Fingerprint Submission.
i. SBA will use an FBI-approved, SBA-contracted channeler to conduct fingerprint
background checks via Applicant Services.
ii. After a CDC determines that a fingerprint background check is required, the CDC will
refer the Subject Individual to the approved channeler’s website where they must
create an account and register. The Subject Individual will select the “SBA Form
1081” option and complete the fingerprint process by following the directions on the
approved channeler’s website: Applicant Services.
iii. The channeler will provide expedited fingerprint processing by directing Subject
Individuals to approved electronic fingerprinting facilities listed on the channeler’s
website based on the Subject Individual’s location. Depending on the circumstances,
the channeler will also provide additional locations where hard-copy fingerprints may
be taken and will provide the FBI Form FD-258 Fingerprint Card for the Subject
Individual to capture the fingerprints along with instruction on submitting the
fingerprint cards to the SBA-contracted channeler for continued processing.
iv. The channeler will electronically submit the fingerprints to the FBI, and the FBI will
provide the results of the background check to the channeler who will, in turn, provide
the results to SBA via a secure portal; or
PAGE 2 of 3 EXPIRES: 5-1-25
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
b. Evidence of a Federal clearance (e.g. FDIC, OCC, Federal Reserve) from the
individual’s current employer.
6. Submission to SBA.
SBA Form 1081 must be signed and dated within 90 days of submission to SBA. After the CDC
has verified that the Subject Individual has submitted fingerprints to the channeler, the CDC
must submit SBA Form 1081 along with supporting documents such as resume and court
documents (if applicable) to SBA either by:
a. Email: OCA1081@sba.gov; or
b. Hard copy: Overnight mail or courier to U.S. Small Business Administration, Office of
Capital Access, Attn: 1081 Processing, 409 3rd Street SW, 8th Floor, Washington, DC,
20416.
NOTE: CDCs must also notify SBA at 504Requests@sba.gov of the following: changes in
CDC’s management, compensated and uncompensated officers, Board members, Executive
Committee members, Loan Committee members, and staff (including contractors who are
providing services to the CDC under a professional services contract that requires prior SBA
approval under 13 CFR 120.824). See paragraph E, Reporting Requirements below.
7. CDC Certification Applications: Clearances made by SBA during the CDC certification
application process will remain valid while the certification application is being processed;
however, if the application is pending and more than 1 year has lapsed since an individual
was cleared by SBA, the individual must certify under penalty of perjury either that nothing
has changed on any of the responses to the questions in SBA Form 1081 or, if there have
been changes, the individual must identify any such change(s) that have occurred since the
individual signed and submitted the SBA Form 1081 that was used by SBA to clear the
individual. The CDC must submit the certification to SBA at 504Requests@sba.gov and
maintain a copy in the CDC’s files.”
Questions
Questions concerning this Notice may be directed to Jerome Gray at cornelius.gray@sba.gov.
Kathryn Frost
Associate Administrator
Office of Capital Access
PAGE 3 of 3 EXPIRES: 5-1-25
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
File and source
- File
- 2024-05_Procedural-Notice-5000-856893_SOP-50-56-Update-to-Form-1081_FINAL-5.22.2024-1.pdf
- Size
- 180,593 bytes
- SHA-256
- 67022b82bfe6c968ac53ec4b73f5a2c429c14ae34eab71ea2f51f195c4b20ad3
- Original
- www.sba.gov