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SBA Procedural Notice: Guidance on Acceptable Signatures for Microloan Program Notes

Summary

SBA Procedural Notice, Control No. 5000-20013, effective April 3, 2020, to SBA employees and SBA Microloan intermediary lenders, on acceptable signatures for Microloan Program notes. It gives guidance to intermediary lenders on acceptable signatures on notes signed by small businesses when closing loans under the Microloan Program during the uncertainty of the COVID-19 pandemic. One section addresses small business loans closed by Microloan Program intermediary lenders.

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Full text

                       SBA Procedural Notice

TO: All SBA Employees and SBA Microloan                                            CONTROL NO.: 5000-20013
Intermediary Lenders

SUBJECT: Guidance on Acceptable Signatures for                                     EFFECTIVE: April 3, 2020
Microloan Program Notes




The purpose of this Notice is to provide guidance to SBA Microloan Program Intermediary
Lenders regarding acceptable signatures on the notes signed by small businesses when
closing loans under the Microloan Program during this period of uncertainty due to the
ongoing Coronavirus Disease 2019 (COVID-19) pandemic.


Small Business Loans closed by Microloan Program Intermediary Lenders
SBA does not currently permit Microloan Program Intermediary Lenders to use electronic
signatures on the microloan notes used to close small business loans under the Microloan
Program.
Effective immediately and until September 30, 2020, SBA is allowing Microloan Program
Intermediary Lenders to accept scanned copies of signed microloan notes, provided the SBA
Lender also obtains a copy of the driver’s license (front and back) of the person executing
the microloan note or other valid form of identification.
In all cases where a scanned copy of a microloan note was used to close a small business
loan under the Microloan Program, an original signature note must be obtained within 6
months of the date of the note. If the Microloan Program Intermediary Lender fails to obtain
the required original signature within 6 months of the date of the note, SBA may require the
Microloan Program Intermediary Lender to purchase the subject microloan out of the SBA
Microloan Program loan portfolio.
SBA Microloan Intermediary 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: 4-1-2021
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 Daniel Upham, Chief, Microenterprise
Development Division, Office of Financial Assistance via email at Daniel.Upham@sba.gov.




William M. Manger
Associate Administrator
Office of Capital Access




PAGE 2 of 2                                                                                EXPIRES: 4-1-2021
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

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