The Lender Advantage Newsletter (October 2013)

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October 2013

The Lender Advantage Newsletter

A publication of the St. Louis District Office

If you have further questions on any of the items mentioned in this newsletter, please contact Tom Daiber, Bill Vickery or Bob Newman.


Thank You for Making 2013 a Great Year!

FY 2013 was a record year for SBA lending in the eastern half of Missouri with 474 loans totaling $211,350,800 originated in the St. Louis District.  Across Missouri 1,081 loans totaling $425,532,700 was guaranteed.  Dennis Melton, District Director for the St. Louis District noted, “The record level of SBA lending was particularly noteworthy in that the loan volume was without the incentives available in FY 2011 as a result of the 2010 Jobs Act, and over 100 lenders in our district made at least one SBA loan during the year. The future looks bright for SBA lending with a waiver of SBA guarantee fees on loans of $150,000 or less during FY 2014.”

We couldn't have done it without the support of our lending partners. We applaud you for helping to get capital in the hands of small businesses in eastern Missouri.


Lender Training

The St. Louis District has scheduled lender training sessions to update you on the changes to SBA lending effective January 1, 2014. If you cannot attend one of these 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.


Post Approval Changes on SBA Loans

It is not unusual for a lender to need to change the terms of an SBA authorization after SBA has agreed to guaranty a loan. When you need to make a change to a loan that is not fully funded, you may send modification requests via e-mail to 7aLoanMod@sba.gov.

However, if the loan has been fully funded, you can refer to the “7(a) Lender Matrix.”  The matrix lays out what changes can be made under a lender's unilateral authority (without getting concurrence from SBA) and what actions require prior SBA approval. To request prior approval, contact the Fresno Loan Servicing Center via e-mail at fsc.servicing@sba.gov. You may also want  to use and attach SBA Form 2237, 7(a) Loan Post Approval Action Checklist. 

Many lenders find it helpful to use SBA's E-Tran (electronic loan servicing/processing system), which enables lenders to make a direct change to an SBA loan record. If you originate and/or service SBA-guaranteed loans, we recommend that you obtain an E-Tran account.  Not only can you make changes for approved unilateral actions, but with E-Tran you can also go back and check that the change has been reflected on the SBA loan record.

For more information on post approval actions, please see page 230 of SOP 50 10 5 (E).

4th Quarter FY 2013 - Third Party Lender Loans

For the fourth quarter of fiscal year 2013 (July 1 – September 30, 2013), Certified Development Companies (CDCs) provided nearly $7.8 million in SBA's 504 loan program funding which supported 16 third-party lender loans totaling nearly $10.2 million to 16 eastern Missouri-based businesses.

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Keep Informed: Sign Up for E-Mail Updates!

If you are receiving this newsletter, you have already signed up to receive the St. Louis District Office's The Lender Advantage newsletter and other information pertinent to SBA lending. This newsletter is designed specifically for lenders and is not distributed to the general public unless requested.

Did you know we also have a district office newsletter, Gateway eGazette?  It is published on a quarterly basis and is distributed to anyone who signs up for e-mail updates from the St. Louis District Office, as well as any events, workshops, or other information of use to small businesses in our area.

If you know of anyone in your lending institution who would benefit from this information and is not receiving the updates, they can sign up by entering their e-mail address and following the prompts. Be sure to check the plus sign in front of Missouri and select St. Louis Lender News and/or St. Louis News. You can also sign up for any other SBA newsletters you choose.