SBA | Lender News | November 2013

Having trouble viewing this email? View it as a Web page.

November 2013

The Lender's Advantage

Brought to you by the West Virginia District Office

loans

SBA Eliminates Fees for Loans Under $150K

Good news for entrepreneurs using SBA financing to purchase or grow a small business. Effective October 1, 2013, the SBA has waived all fees paid by the borrowers for the guaranteed portion of 7(a) loans of $150,000 or less. Previously, borrowers utilizing the SBA guarantee through participating lenders would pay up to two percent of the guaranteed portion on these loans, which would commonly cost a small business owner up to $2,550 in fees.

Click here to read more

Government Shutdown Information

Message from Sacramento Loan Guaranty Processing Center:

  1. All requests that came in during the furlough have been recorded as of the date of submission. We received small numbers each day
    (3-5) until October 17th, when incoming volume spiked. 
  2. We did not process any loan applications during the furlough, as the LGPC was dark. 
  3. We are collocated with a Disaster office and they accepted mail/Fedex for the LGPC (a total of 7 loan apps), we don’t get much paper anymore. Nothing was opened or input to our system until we returned on October 17th. 
  4. No staff was here to download loan applications submitted to 
    ‘Send This File’.  Due to the normal time frame that ‘send this file’ holds loan applications, applications received late on 9/30 thru 10/3 timed out. We have contacted the lenders whose loan packages were lost and have had them resubmit and we entered them as of the day of original transmission.
  5. We have returned to normal processing times, other than the
    14 business days that we were on furlough. So while we are working down our backlog efficiently, there is still the shutdown delay in the mix.

Message from Fresno and Little Rock Commercial Loan Servicing Centers:

As it pertains to the two service centers, servicing, express purchases
and 504 liquidations are experiencing a slight degradation of turn times.  We ask our lenders and District Office friends to be patient as we focus
on eliminating the backlog created by the 11 day government shutdown.  We have made some internal operational and processing changes to mitigate the inconvenience and we expect to be operating at normal
levels within 60 days. 

In the meantime, lenders and District Office professionals should continue to submit actions using our regular procedures. 

Message from Herndon Liquidations & Purchases:

  1. All requests that came in during the furlough are being recorded as received the day the Center re-opened – October 17, 2013. 
  2. The clock did stop on the timing for purchases and all other work during the furlough.  We are still expediting the brand promise files to make every attempt to meet our 45 day promise. 
  3. There was someone here to open the door and accept the physical mail, but it wasn’t opened or processed.  That all occurred the day we re-opened. 
  4. There was not anyone here to work the Send This File System.  The normal setting on Send This File only holds documents in the cue for 7 days.  In preparation for the furlough, we had them increase it to the highest number, which was 14 days.  There is a possibility that some requests that came in using Send This File, were not actually received.  Our customer service division was able to identify 23 packages that we couldn’t access and they did reach out to each of the Lenders to let them know to resubmit.  However, from a customer service perspective, I worry that there could be Lenders out there who think we got something and we didn’t.  Please let the Lenders know that if they haven’t heard from us that we received their request, they may want to confirm that we have it.

New SOP 50 10 5(F) Brings Big Changes to SBA Loan Program Requirements

On September 25, 2013, SBA released SOP 50 10 5(F) to the SBA lending community. This SOP will become effective on January 1, 2014 and contains several significant changes to SBA’s requirements in connection with its loan programs. Many of the revisions reflect a continuation of SBA’s stated goals to streamline, standardize and simplify its loan program requirements and alter many long-standing program requirements.

Click here to read more


7(a) Risk-Based Lender Review File Checklist

The number one goal of the West Virginia District’s lender relations team is to ensure SBA’s guaranteed lenders across the state have the knowledge, skills and confidence to successfully originate, close and service an SBA-guaranteed loan. A simple way you can audit your own SBA-guaranteed loan files to see if they have been documented in accordance with SBA’s policies and procedures, is to download SBA’s 7(a) File Checklist, print it out and complete the form for any of the SBA-guaranteed loans in your portfolio.


New Procedure for Franchise Lending

SBA tracks and reports the performance of loans to franchises, so it is important that franchise loans are identified as such. This includes loans to businesses operating under franchise, license, dealer, jobber or similar agreements.

To make this process easier, beginning October 1, 2013, SBA will be using a new coding system to identify each franchise: the FRANdata Unique Numbering System (FRUNS). The FRUNS number will replace the “franchise codes” previously used by SBA.

Click here to read more


Good Question

Q. Are mini-warehouses eligible for an SBA loan?  

A. Yes, the changes were announced in Information Notice 5000-1163, but mini-warehouses were not explicitly mentioned in that Notice. However, the intent was clear: mini warehouses are eligible (See Passive Income Definition paragraph in the Information Notice).


Contact Information

WV District Office
320 Pike Street
Suite 330
Clarksburg, WV 26301

Rick Haney, Lender Relations Specialist
Phone: 304-623-7449 Email: richard.haney@sba.gov

Charleston Branch Office
405 Capitol Street
Suite 412
Charleston, WV 25301 Leo Lopez, Lender Relations Specialist
Phone: 304-347-5220 Email: leo.lopez@sba.gov

Leo Lopez, Lender Relations Specialist
Phone: 304-347-5220 Email: leo.lopez@sba.gov

wvinfo@sba.gov
http://www.sba.gov/wv
Click here for our complete office directory

SBA Loan Base Interest Rates

3.25%: Wall Street Journal Prime

3.13%: SBA Peg

3.18%: LIBOR (1 month) + 3%

Resources

Capital Access & Program Information

The West Virginia District Office strives to keep our lending community up to date with most recent policy notices, upcoming lender training and webinars, resources and tips (including recordings of past webinars), and past newsletters.

Click here to make it one of your browser favorites.


SBA Lender Website


Servicing & Liquidation Action Lender Matrix


Recent SBA Lending Activity