If you have further questions on any of the items mentioned in this newsletter, please contact Tom Daiber, Bill Vickery or Bob Newman.
The SBA St. Louis District Office staff has new phone numbers. The main telephone number will remain the same, but staff members now have direct lines instead of extensions. The lender relations staff numbers are listed at the bottom of this newsletter as usual and you can find the other staff members in the phone and resource partner list link to the right of this article.
7(a) and 504 Fees
On September 24, SBA issued SBA Information Notice 5000-1288, 7(a) and 504 Fees Effective on October 1, 2013.
Each year SBA reviews certain fees payable to SBA by 7(a) participating lenders (“Lenders”), Certified Development Companies (“CDCs”), and borrowers to determine if any of those fees need to be adjusted to cover estimated subsidy costs of the 7(a) and 504 loan programs. The purpose of this Notice is to announce a reduction in the FY2014 yearly fee (also known as the “on-going guaranty fee” or the “annual service fee”) for all 7(a) loans and a reduction in the upfront guaranty fee for all 7(a) loans in the amount of $150,000 or less. Additionally, this Notice announces that there are no changes to fees for 504 loans approved during FY2014.
> Read full notice
New SOP 50 10 5 (F) Effective January 1, 2014
On September 25, 2013, SBA issued SBA Information notice 5000-1290, Issuance of SOP 50 10 5 (F) - Lender and Development Company Loan Programs, which will be effective on January 1, 2014. This version of the SOP will apply to all applications received by SBA on or after January 1, 2014.
As with previous editions of SOP 50 10 5, SBA will post two versions on the website. The first version will be highlighted to enable users to more easily identify those areas that have been modified. The second version is a clean copy of the new document that incorporates all of the changes. All lenders are encouraged to thoroughly review the updated SOP prior to the effective date.
There are significant modifications made to simplify and move all programs to electronic submission. The Notice provides a summary of some key clarifications and changes made in this update of the SOP.
> Read full notice
The St. Louis District has already begun scheduling lender training sessions to update you on the changes to SBA lending effective January 1, 2014. If you cannot attend one of those sessions, please contact Tom Daiber, Bill Vickery or Bob Newman to arrange a meeting to keep you and your staff fully informed. If you prefer, they would be glad to set up a training session for you and your staff to discuss what you need to do to remain confident in your ability to originate, close, service and – if necessary – liquidate SBA-guaranteed loans.