Extension of Previous Guidance on Acceptable Signatures for Applications and Loan Documents (Control No. 5000-20089)
Summary
This SBA Procedural Notice, Control No. 5000-20089, effective January 28, 2021, extends through April 30, 2021 the guidance in Procedural Notice 5000-20061, which was scheduled to expire on January 31, 2021. SBA cites the continued uncertainty of the COVID-19 pandemic. SOP 50 10 permits lenders to use electronic signatures on SBA forms for 7(a) and 504 loans if they meet the standards in its Appendix 10. Where electronic signatures are not feasible, SBA Lenders may accept scanned copies of the documents until April 30, 2021.
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Full text
SBA Procedural Notice
TO: All SBA Employees and SBA Lenders CONTROL NO.: 5000-20089
SUBJECT: Extension of Previous Guidance on EFFECTIVE: January 28, 2021
Acceptable Signatures for Applications and Loan
Documents in the 7(a) and 504 Business Loan
Programs Through April 30, 2021
The purpose of this Notice is to further extend the guidance set forth in SBA Procedural
Notice 5000-20061, “Extension of Previous Guidance on Acceptable Signatures for
Applications and Loan Documents in the 7(a) and 504 Business Loan Programs Through
January 31, 2021”, effective November 23, 2020. The guidance in SBA Procedural Notice
5000-20061 is scheduled to expire on January 31, 2021, and SBA is extending it through
April 30, 2021, due to the continued uncertainty of the ongoing Coronavirus Disease 2019
(COVID-19) pandemic.
7(a) and 504 Business Loans
As set forth in Standard Operating Procedure (SOP) 50 10, SBA currently permits SBA
Lenders (7(a) Lenders and Certified Development Companies) to use electronic signatures on
SBA forms and other documents requiring signatures in connection with 7(a) and 504
business loans provided they comply with the standards outlined in Appendix 10 to SOP 50
10 6, titled “Electronic Signatures”. 1 In SBA Procedural Notices 5000-20050 and 5000-
20061, SBA modified the procedures for submitting documents with acceptable signatures
where electronic signatures were not feasible. With this Notice, SBA is extending these
modified procedures for submitting acceptable signatures as follows:
1
Electronic signatures cannot be used on any document if the recording office requires wet signatures. See, Section
B. below.
PAGE 1 of 3 EXPIRES: 1-1-22
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
A. Application Documents, Note, Guaranty, and Servicing Agent Agreement:
Effective immediately and until April 30, 2021, where electronic signatures are not
feasible, all SBA Lenders may accept scanned copies of 7(a) and 504 SBA forms and
other loan documents with all required signatures, including but not limited to:
1. The Applicant’s signature (including the signature(s) of any Co-Applicant,
Operating Company, owner(s) of the Applicant, and key employee(s), if
required by SBA Loan Program Requirements) on application documents
(including SBA Form 1919, Borrower Information Form (for use with all 7(a)
Programs), SBA Form 1244, Application for Section 504 Loans and SBA
Form 159, Fee Disclosure and Compensation Agreement;
2. The Borrower’s signature on the promissory note (SBA Form 147 or the
Lender’s equivalent form for 7(a) loans and SBA Form 1505 for 504 loans);
3. The Agent’s signature on SBA Form 159;
4. The Guarantor’s signature on the guaranty (SBA Form 148/148L or the
Lender’s equivalent form); and
5. For 504 loans, the Borrower’s signature on SBA Form 1506, Servicing Agent
Agreement.
The scanned copy of the document is acceptable provided that the SBA Lender also
obtains:
1. A copy of the individual’s driver’s license or other valid form of identification
(front and back) at the same time that the scanned copy is submitted; and
2. A valid original signature on the applicable document within 6 months of the
date of the Note.
If the SBA Lender fails to obtain the required original signature within 6 months of
the date of the Note, for 7(a) loans, SBA may deny liability on the guaranty in full
and, for 504 loans, SBA may pursue a CDC recovery claim under 13 CFR § 120.938
and/or a claim against the 504 Closing Attorney.
For 504 loans, before the Debenture is sold, the CDC must complete an assignment of
the Note and Guaranty(ies) to SBA when scanned copies of all required signatures
have been obtained. When the CDC obtains the documents with all valid original
signatures within 6 months of the date of the Note, the CDC must assign the original
signed documents to SBA and submit the original assigned documents to the
appropriate SBA Servicing Center.
PAGE 2 of 3 EXPIRES: 1-1-22
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. Collateral/Security Documents:
With respect to collateral/security documents that must be recorded, such as
mortgages, deeds of trust, security agreements and Third Party Lender Agreements,
SBA Lenders must comply with the requirements of the applicable local recording
office with respect to acceptable signatures.
Additional Information
If electronic signatures are not feasible, when obtaining a wet ink signature without in-person
contact, SBA Lenders must take appropriate steps to ensure the proper party has executed the
document.
SBA Lenders must retain the required documents in accordance with SOP 50 10.
SBA Lenders are reminded to protect all Personally Identifiable Information (PII) in
accordance with all applicable privacy and other laws and practices.
Questions on this Notice may be directed to the Lender Relations Specialist in the local SBA
Field office. The local SBA Field office may be found at https://www.sba.gov/tools/local-
assistance/districtoffices.
John A. Miller
Acting Associate Administrator
Office of Capital Access
PAGE 3 of 3 EXPIRES: 1-1-22
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
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- SHA-256
- 45b3f4d46cd9a18eebf3213612e0d0189db04db8fee6cfaaca640bb357d09d3e
- Original
- www.sba.gov