Guidance on Acceptable Signatures for Applications and Loan Documents in the 7(a) and 504 Business Loan Programs
Summary
This SBA Procedural Notice, Control No. 5000-20009, effective 3/24/2020, gives SBA Lenders guidance on acceptable signatures on applications and loan documents for 7(a) and 504 loans during the COVID-19 pandemic. Until September 30, 2020, where electronic signatures are not feasible, lenders may accept scanned copies of signed documents if they also obtain a copy of the individual's driver's license or other valid identification, front and back. The lender must also obtain a valid original signature within 6 months of the date of the Note. If it does not, SBA may deny liability on the guaranty in full for a 7(a) loan, or pursue a CDC recovery claim for a 504 loan.
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Full text
SBA Procedural Notice
TO: All SBA Employees and SBA Lenders CONTROL NO.: 5000-20009
SUBJECT: Guidance on Acceptable Signatures for
Applications and Loan Documents in the 7(a) and EFFECTIVE: 3/24/2020
504 Business Loan Programs
The purpose of this Notice is to provide guidance to SBA Lenders (including 7(a) Lenders
and Certified Development Companies (CDCs)) regarding acceptable signatures on
applications and other loan documents for 7(a) and 504 business loans during this period of
uncertainty due to 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 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 8 to the SOP.
Effective immediately and until September 30, 2020, where electronic signatures are not
feasible, all SBA Lenders may accept scanned copies of signed applications and loan
documents, provided the SBA Lender also obtains:
1. A copy of the individual’s driver’s license or other valid form of identification
(front and back); 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.
SBA Lenders must retain the required documents in accordance with SOP 50 10, Subpart A,
Ch. 1, Para. II.E.6 (for 7(a) Lenders) and Ch. 3, Para. II.B.8 (for CDCs).
SBA Lenders are reminded to protect all Personally Identifiable Information (PII) in
accordance with all applicable privacy and other laws and practices.
PAGE 1 of 2 EXPIRES: 3-1-21
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recyling Program Printed on Recycled Paper
Questions
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.
William M. Manger
Associate Administrator
Office of Capital Access
PAGE 2 of 2 EXPIRES: 3-1-21
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recyling Program Printed on Recycled Paper
File and source
- File
- 2020-04_SBA-Procedural-Notice-5000-20009-7a-504-Covid-19-Signatures.pdf
- Size
- 35,800 bytes
- SHA-256
- f2f6da5b6e501b46a6c3c168db74e12046cd95cb46216ddcd31579151cf434eb
- Original
- www.sba.gov