If you have further questions on any of the items mentioned in this newsletter, please contact Tom Daiber, Bill Vickery or Bob Newman.
As another year comes to a close, the St.
Louis District Office would like to wish you
and your loved ones a wonderful holiday
season filled with warmth and good cheer
and a happy and prosperous New Year!
Patriot Express Pilot Loan Program Ends
The Patriot Express Pilot Loan Initiative (PX) ends on December 31, 2013.
No PX loan applications will be approved after that date. If you have a PX application pending, a loan number must be issued by SBA on no later than December 31, 2013, otherwise you will have to submit the application under a different loan program, such as SBA Express.
As you may know, beginning January 1, 2014, the guarantee fee on SBA Express loans will be waived through September 30, 2014 on loans made to businesses at least 51% owned by veterans.
The Gulf Opportunity Pilot Loan Program (GO) ends on December 31, 2013. No new Gulf Opportunity loan applications will be approved after that date.
On December 12, 2013, SBA Information Notice 5000-1294 “Clarification of Fee Reductions for 7(a) Loans of $150,000 or Less in FY 2014” was issued. This notice clarified Notice 5000-1288 permitting the waiver of guarantee fees for loans of $150,000 or less during FY 2014.
Please be sure to read both notices carefully.
Important Message - Charging Off 7(a) Loans
SBA’s National Guaranty Purchase Center (NGPC) wants to remind all Eastern Missouri 7(a) lenders the NGPC is focused on ensuring timely charge off of 7(a) loans. In order to do so, NGPC needs a wrap-up report prepared using the Charge-Off Tabs. If you have indicated a loan is ready for charge-off on your Quarterly Status Report, please be sure to send the completed charge off tabs as soon as possible to email@example.com via e-mail or by using Send This File.
In many cases, a review of the file shows the NGPC did receive a wrap-up report, but the report was sent long ago. SBA reviewed it and determined the loan was not ready for charge off at that time. If the loan is now ready for charge off, please check to be sure you sent the NGPC a final wrap-up report accounting for all collateral and obligors and all recoveries.
The NGPC has recently been paying particular attention to loans that have been in its portfolio for more than three years and will be working with SBA’s Office of Credit Risk Management to ensure lenders are following program requirements. The NGPC’s primary goal is to ensure every 7(a) loan ready for charge off is, in fact, charged off.
Lenders generally work directly with NGPC, but if you have any difficulties or questions with the process, our lender relations staff serves as a local liaison between you and NGPC and can often assist you with resolving issues.
Nominate a Small Business Today!
Do you know of a small business owner deserving of recognition? Believe it or not, it’s time to start thinking of Small Business Week nominees! Did you know the St. Louis District 2013 winner of the Small Business Person of the Year was Terry Cooke, President of Bloomsdale Fabrication & Welding, nominated by Bob Francis, VP of Midwest Regional Bank in Festus, MO? Could our next winner be you or a small business owner you know and work with?
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