If you have further questions on any of the items mentioned in this newsletter, please contact Tom Daiber, Bill Vickery or Bob Newman.
The 2014 Resource Guide has been published and is available for download. The resource guide provides information about programs, resource partners and other tips for opening and running a small business.
Improved LGPC Submission Process
To improve customer service and reduce processing times, the 7(a) Loan Guaranty Processing Center (LGPC) is refining the loan guaranty submission process. The refined process is designed to assist lenders in preparing complete, well-organized loan origination packages for electronic submission to the LGPC.
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Effective January 1, 2014, the U. S. Small Business Administration began using Forms 1919 and 1920 for all 7a loan applications (except for the Export Working Capital Program which uses SBA Form 84-1) and will no longer accept guaranteed loan applications using SBA Form 4 or 2301. The revised versions of SBA Forms 1919 and 1920 are in the final clearance stage and are expected to be approved for use soon. Until then, Lenders will use the existing 1919 and 1920 forms (Revised 5/2012 versions).
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SBA Veterans Advantage
The SBA Veterans Advantage program began January 1, 2014 and continues through September 30, 2014. The initiative is intended to facilitate lending to veteran-owned small businesses so that they have the tools they need to start and grow their businesses.
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1st Quarter FY 2014 - Third Party Lender Loans
For the first quarter of fiscal year 2014 (October 1 – December 31, 2013), Certified Development Companies (CDCs) provided nearly $14.9 million in SBA's 504 loan program funding which supported 17 third-party lender loans totaling over $24.4 million to 17 eastern Missouri-based businesses.
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Bob Newman, SBA’s International Trade Officer for Eastern Missouri is now accredited as an International Certified Global Business Professional (CGBP). The examination was administered by the National Association of Small Business International Trade Educators (NASBITE) in Cleveland, Ohio.
Bob states, “I learned a lot in preparation for the CGBP exam, and I welcome the opportunity to share what I have learned with our lenders and the small businesses we serve. If I don’t have the answer, I know where to go to get an exporter the help they need.”
Please contact Bob at 636-358-5941 or email@example.com to discuss export opportunities or learn more about SBA export finance programs--Export Express, Export Working Capital or the International Trade Loan. These loans offer up to a 90% guarantee.
Frequently after an SBA loan has been disbursed, circumstances change and give rise to borrower servicing requests. They can range anywhere from a simple request to change a mailing address to a complicated request involving the exchange of collateral or the change in a borrower’s legal structure. Regardless of the level of complexity, all servicing requests must be reviewed, analyzed and acted upon in accordance with prudent lending practices and adhere to SBA policy (SOP 50-57) . As long as the borrower is viable, when responding to a servicing request, the goal should be to meet the borrower’s short and long term needs without impairing the integrity of the SBA loan program, i.e., the ability to recover on the loan. Lenders have unilateral authority per the “7(a) Lender Matrix” for many servicing actions and the credit file should document the rationale for the credit decision.