August 21, 2017                                                        TIMELY. RELEVANT. NEWSWORTHY. 

Catchall Regulation published August 19; EPC/OC changes effective September 20
On Saturday, SBA published the long-awaited 'Catch-all Regulation' that, among other things, makes changes to the conditions that an Eligible Passive Company (EPC) must satisfy to permit SBA loan proceeds "to be used to finance a change of ownership between existing owners of the EPC" [according to the Federal Register, SOP 50 10 will provide further guidance], along with a clarification of the eligible use of proceeds when the OC is a co-borrower on a loan. In addition, there are many other small discrete changes to regulations impacting the 7(a) program.  NAGGL experts are still in the process of analyzing, but watch your inbox on Tuesday for our full interpretative analysis! More >

Stay tuned for full analysis!!

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FY 2018 Fees outlined in two Notices

SBA published two Information Notices that describe the guaranty fees that will be effective for loans approved during Fiscal Year 2018 (beginning October 1, 2017). 

5000-1954, 7(a) and 504 Fees effective October 1, 2017 >

5000-1955, Fees for 7(a) Loans Made to Veteran Owned Small Businesses Effective
October 1, 2017 >

Lenders should note that the ongoing (annual service) fee increases to the statutory maximum of 55 basis points.

We've created a chart (below) to provide a simple summary of the FY 2018 upfront guaranty fees. However, important changes to be aware of for loans with maturities greater than 12 months:

Larger PDF version of chart >

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Public comments sought by SBA on Reducing Unnecessary Regulatory Burden - Due October 16
The SBA published in the Federal Register on August 15 a request seeking input from the public on "identifying which of the Agency’s regulations should be repealed, replaced or modified because they are obsolete, unnecessary, ineffective, or burdensome."  The purpose is to gather information.

NAGGL regularly hears from members that some SBA regulations are outdated, "don't make sense" or add a real burden to providing a creditworthy borrower access to capital. NOW is your chance to share your thoughts on specific regulations that you believe need adjusting.  

The Federal Register notice provides instructions for submitting comments, as well as potential questions to consider when formulating your thoughts.  See Code of Federal Regulations >

1) Are there SBA regulations that have become unnecessary or ineffective and, if so, what are they?
(2) Are there SBA regulations that can be repealed without impairing SBA’s 
regulatory programs and, if so, what are they?
(3) Are there SBA regulations that have become outdated and, if so, how can they be modernized to better accomplish their regulatory objectives?
(4) Are there SBA regulations that are still necessary, but which have not operated as well as expected such that a modified approach is justified, and what is that approach?
(
5) Are there SBA regulations or regulatory processes that are unnecessarily complicated or could be streamlined to achieve regulatory objectives more efficiently?
(6) Are there any technological developments that can be leveraged to modify, streamline, or repeal any existing SBA regulatory requirements?
(7) Are there any SBA regulations that are not tailored to impose the least burden on the public?
(8) How can SBA best obtain and consider accurate, objective data about the costs, burdens, and benefits of existing SBA regulations?
(9) Are there any specific suggestions of ways SBA can better achieve its regulatory objectives?

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Public comments sought on SBA Forms 770 and 1149
SBA published two items in the July 24 Federal Register (vol. 82, no. 140) seeking public comments on data collection accomplished through information gathered on SBA Forms 770 and 1149.   More (including instructions on HOW to submit comments >

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2017 Board Election Timeline

September 22 –Ballot Deadline: ballots submitted electronically or postmarked by this date
October 30-November 1 –Results announced at the Annual Conference in Colorado Springs, CO


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New membership add-on available - Individual Membership

Interested in better understanding the ins & outs of government relations as it relates to the 7(a) program? Want to know how to best communicate with your congressional representatives and the agency while getting involved with NAGGL leadership and learning about our PAC? Add an Individual Membership to your existing NAGGL membership! Enrollment is voluntary and the annual dues are either $25 (for those persons on a Sustaining member’s roster; or serving on the Board) or $50 (for those persons on an Associate or a Regular member’s roster). FAQ >

What are the additional benefits of an individual membership?

More, including application >

Register >

August 23 - WEBExpress: What to Know About Construction Documentation
August 24 - WEBExpress: What a Lender Needs for Construction Title Documentation
September 7 - WEBExpress: Preserve Your Guaranty - Don't Make These Mistakes
September 12-13 – Fundamentals of SBA Credit Underwriting (Orlando, FL)
September 7 - WEBExpress: Planning for Liquidation 
September 14 - WEBExpress: Preserve Your Guaranty: Don’t Make These Mistakes! 
September 20 - WEBExpress: Winter IS Coming ... How to Meet the Prudent Liquidation Deadline [SPECIAL PRICE]

"The conference is always cutting edge. I am baffled how institutions that don't attend stay current on what is happening ... ."  -- NAGGL Indianapolis conference attendee

Annual Conference

October 30-November 1
Colorado Springs, CO


REGISTRATION FEE
Before September 8:
$1,050 mbr, $1,550 non-mbr, $650 Fed Govt
After September 8 (or until sold-out):
$1,300 mbr, $2,000 non-mbr, $650 Fed Govt

BOOK YOUR ROOM EARLY!!!

The Broadmoor Hotel

1 Lake Avenue
Colorado Springs, CO 80906

Direct: 714.471.4975
Reservations: 855.586.0957
Hotel Cut-Off: October 6 
(or until sold out!)
Room Rate: $223 (+11% occupancy tax +$16 resort fee)

Online Reservations >



National Association of Government Guaranteed Lenders, Inc.
215 East 9th Avenue | Stillwater, OK 74074 | 405.377.4022 | info@naggl.org | www.naggl.org

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