SBA Procedural Notice 5000-856984: 504 Program Updates to SOP 50 10 7.1 Removing Cap on Energy Public Policy Projects and Extensions on Debenture Beyond 48 Months
Summary
SBA Procedural Notice, Control No. 5000-856984, effective April 30, 2024, to SBA employees, SBA lenders and certified development companies, on 504 program updates to SOP 50 10 7.1. It removes the $16,500,000 million cap on Energy Public Policy projects, as the notice prints it. It also gives an update on approvals by OFPO/SLPC of extensions of loan disbursement and debentures beyond 48 months.
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Full text
SBA Procedural Notice
TO: All SBA Employees, SBA Lenders, and CONTROL NO.: 5000-856984
Certified Development Companies
EFFECTIVE: April 30, 2024
SUBJECT: 504 Program Updates to SOP 50 10 7.1
Removing Cap on Energy Public Policy Projects
and Extensions on Debenture Beyond 48 Months
The purpose of this Notice is to revise the provisions of SOP 50 10 7.1 related to the 504 Loan
Program, including removing the $16,500,000 million cap on Energy Public Policy projects, and
providing an update on approvals by OFPO/SLPC on extensions of loan disbursement periods
beyond 48 months unless referral to OFA is warranted.
1. Removing the Cap on Energy Public Policy Projects Financing
SOP 50-10-7.1, page 306, paragraph D.1.c.i. is revised to remove the following:
i. “The outstanding Gross Debentures issued for a small business concern, including affiliates,
for Eligible Energy Public Policy Projects must not exceed $16,500,000 in the aggregate.”
The removal of this provision will result in the renumbering of the remainder of section as
follows:
i. The $5,500,000 limit for each Project is not reduced by any other outstanding SBA loan
guaranties that the Borrower and its affiliates have received through other SBA loan
programs.
ii. Loans made for Eligible Energy Public Policy Projects do not reduce the $5,000,000 limit
for each small business concern for other 504 Projects.
2. Revising Procedures Related to Extension of Disbursement Period
Currently, SBA requires that the 504 loan be disbursed within 48 months from the date of
approval. SBA is updating SOP 50 10 7.1, Section C, Chapter 2, Paragraph A.2.a to delegate the
decision authority on disbursement extension requests to SLPC when appropriate, rather than all
being referred to OFA. Those deemed appropriate will continue to be referred to OFA for
coordination with OGC and CFO.
PAGE 1 of 2 EXPIRES: 4/1/25
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
Consequently, SOP 50 10 7.1, Section C, Chapter 2, Paragraph A.2.a is revised to read as
follows:
2a. Disbursement Period: The loan must be disbursed within 48 months from the date of
approval, unless an exception to policy is approved and an extension is granted by SBA
through the OFPO/SLPC, with concurrence by SBA CFO to confirm funding authority.
When appropriate, SLPC will also refer extension requests to OFA for concurrence with
OGC and the CFO. CDCs must provide SLPC the reason for the extension and document
how the project sources and uses have been adjusted for any increases in project costs. SBA
will track the approved time frame for loans and automatically cancel undisbursed dollars.
For Debt Refinance without Expansion, the loan must be disbursed within 9 months from the
date of approval, unless an extension not to exceed 15 months is granted by SBA through the
OFPO/SLPC. The Denver Finance Center (DFC) will make a reasonable effort to mail an
initial message to the CDC approximately 3 months prior to taking action on undisbursed
funds. The message will inform the CDC of the undisbursed dollar amount and will provide a
date on which the dollars will be automatically cancelled. After the 3-month message has
expired, DFC will make a reasonable effort to mail a second message on the day the
automatic cancellation is processed.
Questions
If you have any questions regarding this Notice, please contact Gregorius Suryadi at
gregorius.suryadi@sba.gov or Andrew Bergmanson at andrew.bergmanson@sba.gov.
Kathryn Frost
Associate Administrator
Office of Capital Access
PAGE 2 of 2 EXPIRES: 4/1/25
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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