SBA Rapid Decision reference guide, May 15, 2020

Summary

Page 11 of an SBA Rapid Decision reference guide, updated 05/15/2020, with reviewer scenarios and their actions. For a client with a large number of applications with other providers (based on the CBR reflecting several inquiries within a specific timeframe), the action is to contact the applicant to inquire about any additional borrowing, including when, how much, and purpose. If the applicant has not accepted any disaster related loans, the instruction is Approve Loan. If another disaster type loan would duplicate the purpose of the EIDL loan from another lender, the reviewer must determine whether it would duplicate the EIDL working capital loan. When fraud is found on related deal(s), the reviewer reviews each related deal to resolve each fraud alert and documents the findings and action taken in the Notes.

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SBA

U.S. Small Business
Administration

SBA Rapid Decision
Reference Guide

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

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

INFO: If approved for a loan, applicant will also receive advance of SXXXXxX: This is the
advance amount provided to the applicant ranging from ($1,000 - $10,000) based on
$1,000 per employee

Action To Take:
Confirm the system properly deducted this amount from the approved loan
amount.

INFO: Applicant indicated they are a Franchise: This results when the Applicant indicates
the business is a Franchise, an Addendum Form 2462 or SBA Negotiated Addendum is not
required. Always review the NOTES section. Number of Employees™: 1

Action To Take: a

» Check the franchise directory to determine if franchise is located on it.

» The directory shows whether it’s listed, whether it meets the FTC definition of a franchise

BA FRANCHISE
FRANCHISE IS AN SBA IDENTIFIER

IDENTIFIER MEETSFIC ADDENDUM SBAADDENDUM- NEGOTIATED CODE Start
DEFINITION? NEEDED? © Form2462 © ADDENDUM — Date

When the real estate where the franchise business i located wil secure

the SBA guaranteed loan, the Collateral Assignment of Lease may not be

63456 |A Mother's Touch Movers

Updated 05/15/2020
Rapid Fraud Indicators: Appears when the RER Rapid fraud indicators are true

A FRAUD ALERT @ A FRAUD ALERT 7 A FRAUD ALERT 7 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. Decline 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 (info doesn’t go together, person is listed
as deceased, etc.). Owner information could not be validated by data provider, there
were discrepancies or red flags. If owner information is correct and there are no
other Alerts — Approve

5. Owner/Client information failed online identity verification — Approve

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 and get a valid phone number

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

Send to Portal

© Client has large number of applications for this program

PW Ttteitsaee © Client has large number of applications with other providers
e Fraud found on related deal{s)
Loan | Standarc —

> Client has large number of applications for this program (will be reflected in “Related
Deals”)
Action To Take:
Loan Officer should 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

a |

SBA

U.S. Small Business Updated 05/15/2020
Administration
> 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, and purpose)
If applicant has not accepted any disaster related loans — Approve Loan
If applicant has taken out another disaster type loan that would duplicate
the purpose of the EIDL loan from another lender, must determine if that
loan would duplicate 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 findings and action taken in the “Notes”.

11

Updated 05/15/2020


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