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.
SOP 50 10 5(F) update – 7(a) Loan Program Credit Standards
The U.S. Small Business Administration (SBA) recently announced revisions to Standard Operating Procedure (SOP) 50 10 5(F) applicable to the credit standards for 7(a) Small Loans (except SBAExpress and Export Express) and related requirements. SBA is reducing duplicative requirements for 7(a) Small Loans in the continuing effort to streamline and reduce costs of delivery for SBA’s 7(a) loan programs. For 7(a) Small Loans up to and including $350,000, all applications will begin with a screening for a credit score. The applicant (including the Operating Company) must be creditworthy and loans must be so sound as to reasonably assure repayment. The lender must also obtain, verify and reconcile income tax returns for the applicant for the last three years prior to submitting the loan application to SBA if a non-delegated lender and prior to first disbursement if a delegated lender.
> Read more
Submission of Lender Service Provider Agreements
If an SBA lender chooses to utilize an outside firm to assist in originating or servicing SBA loans, the written Lender Service Provider Agreement must be submitted to SBA’s Loan Guaranty Purchase Center for review and approval. SBA has been accepting LSP Agreements that were submitted by Lender Service Providers, as well as those submitted by lenders. This was done as an accommodation for lenders which may have overlooked the requirement to have LSP Agreements reviewed and approved.
Starting August 1, 2014, LSP Agreements that are submitted directly by partner lenders will be reviewed on a priority basis, ahead of Agreements submitted by Lender Service Providers. Within the next few months, we expect to announce that SBA will only accept for review LSP Agreements that have been submitted by lenders.
Missouri Small Business Profile
On June 17, 2014 the United States Small Business Administration’s Office of Advocacy released its Small Business State and Territory Profiles which reports on the economic status of small business from 2010 to 2013. Missouri’s economy as measured by real gross state product increased 2 percent in 2012 and unemployment in the State decreased to 5.9% at December 31, 2013. Missouri has 507,497 small businesses that employ 1,098,076 workers representing nearly half of Missouri’s workforce. Missouri had 5,999 companies that exported goods from the State in 2012, 85% of which were small businesses.
> Read more
The U.S. Small Business Administration (SBA) Office of Technology oversees two competitive programs that ensure the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development (R&D) efforts. More than $2 billion annually in small business government grants are awarded through the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. If any of your small business clients are interested in exploring (R&D) opportunities, have them contact SBA to discuss receiving funding to develop technological solutions to a wide range of issues identified by federal government agencies.