SBA Rapid Decision reference guide, June 12, 2020

Summary

A page of the SBA Rapid Decision reference guide, updated 06/12/2020, giving reviewers actions to take. When a client has a large number of applications with other providers (based on the CBR reflecting several inquiries within a specific timeframe), the reviewer contacts the applicant to ask about any additional borrowing (when, how much, purpose). If the applicant has not accepted any disaster related loans, the action is Approve. If the applicant took out another disaster type loan that would duplicate the purpose of the EIDL loan from another lender, the reviewer determines whether that loan duplicates the EIDL working capital loan. Where fraud is found on related deal(s), each related deal is reviewed to determine and resolve each fraud alert, and the findings and action taken are documented in the Notes.

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SBA

U.S. Small Business
Administration

SBA Rapid Decision
Reference Guide

Below are the various “INFO” messages that may be seen when processing files in the RER
system. “INFO” messages are generated based on established business rules and require
further review by a loan officer. These items must be addressed and mitigated
appropriately. Below are the actions to be taken in response to each of the “INFO” messages
that may appear on deals in process.

Before decisioning any deals, review the Notes for information pertaining to the file.

INFO: Advance amount sent to client: This is the advance amount provided to the applicant
ranging from ($1,000 - $10,000) based on $1000 per employee.

Action To Take:
Review to ensure the system deducted the advance from the eligible loan amount
correctly.

INFO: Applicant indicated they are a Franchise: Results when the Applicant indicates the

business is a Franchise. ieee
Always review the NOTES section. Franchised
Action To Take:

e Check SBA’s franchise directory to determine if the applicant’s brand is listed.

SBA
SBA FRANCHISE
IDENTIFIER MEETSFTC ADDENDUM SBAADDENDUM- NEGOTIATED CODE Start
When the realestate where the franchise business i located wil secure
the $BA,guaranteed loan, the Collateral Assignment of Lease may not be
05/05/2018 jexecuted,

$3456 JA Mother's Touch Movers

Updated 06/12/2020
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SBA

U.S. Small Business
Administration

Rapid Fraud Indicators: Appears when the RER Rapid fraud indicators are true

A FRAUD ALERT @ A FRAUDALERT | A FRAUD ALERT 9 A FRAUD ALERT

Loan Officer Action:
These are the fraud searches that will be performed by RER Rapid. Loan Officer action is the
red text.

1. Device (computer, mobile, IP address) associated with fraud — Review file to
determine if a loan packager is involved with applications submitted. If so, Approve.

2. Large number of applications with other lenders (large scale) — Contact Borrower and
ask why so many applications with private lenders and find out status of those
applications. How many approved loans for how much, etc. (see Fraud on Credit
Report)

3. Large number of applications for this program (several in succession) — Review the
applications to determine if they are duplicates and mark accordingly. Duplicate all
but one of the applications from the applicant. Rapid Finance system identifies the
fields of duplication. (see Fraud on Credit Report)

4. Owner/Client information failed validation (information doesn’t go together, person
is listed as deceased, etc.) — Contact the applicant and ask verification questions to
confirm their identity. Obtain a copy of a valid government issued photo ID to
further verify identity. If unable to confirm identity = Decline the loan

5. Owner/Client information failed online identity verification — Contact the applicant
and ask verification questions to confirm identity. Obtain a copy of a valid
government issued photo ID to further verify identity. If unable to confirm identity
= Decline the loan

6. Client location is international — If the applicant business has a physical presence in a
declared area proceed with processing loan. If not, Decline for no physical presence.

7. Digital identity fraud suspicion/suspicious online behavior — the data altogether has
been used fraudulently online — Decline

8. VOIP phone number or phone number not associated with business or owner —
Contact the applicant, confirm phone number - Approve

9. Email has not passed validation — Contact applicant for valid email address

Send to Portal

© Client has large number of applications for this program

yoy iasaae © Client has large number of applications with other providers

e Fraud found on related deal(s)
Loan | Standare «0

e Client has large number of applications for this program (will be reflected in “Related
Deals”)
Action To Take:
Loan Officer to compare the applications to determine if duplicative.
If not duplicative, review to ensure compliance with ODA’s limits on loan
approval authority. Approve loan within the authority limits.
If duplicative and the duplicated loan(s) is already approved — Decline Loan
11

Updated 06/12/2020
Client has large number of applications with other providers (based on the CBR reflecting
several inquiries within a specific timeframe)
Action To Take:
Contact applicant to inquire of any additional borrowing (when, how much,
purpose). If applicant has not accepted any disaster related loans — Approve

If applicant has taken out another disaster type loan that would duplicate the
purpose of the EIDL loan from another lender, determine whether that loan
duplicates the EIDL working capital loan.

Fraud found on related deal(s)
Action To Take:
Review each related deal to determine and resolve each fraud alert
associated with the specific deal.
Document review findings and action taken in the “Notes”

12
Updated 06/12/2020


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