SBA has published Policy Notice 5000-868068, Policy updates regarding Community Advantage Small Business Lending Companies (CA SBLCs) participation, loan volume and capitalization (effective May 5, 2025). The notice makes significant revisions to provisions in SOP 50 56 1, Lender Participation Requirements, relating to the participation of CA SBLCs in the 7(a) program.
As described in the SBA message announcing the notice, the changes include, among other things:
- Creation of a maximum loan amount of $350,000 for loans originated by CA SBLCs;
- Establishment of minimum capital requirements (phased in beginning May 15, 2025) and lending activity;
- Provision of loan loss reserve requirements; and,
- Establishment of Lender review and examination fees.
It is important to note that, as part of the new Capital Requirements provisions, SBA may request a CA SBLC to “divest any active 7(a) loans and terminate its Form 750” if it fails to originate “at least four 7(a) loans approvals during two consecutive fiscal years”.
Please see the notice for the complete SOP 50 56 1 replacement text. Questions regarding the notice should be sent to [email protected].
