SBA has issued the new SOP 50 56 1, Lender Participation Requirements. The SOP will take effect on August 1, 2023, coinciding with the effective dates for SOP 50 10 7, Lender and Development Company Loan Programs, and SOP 50 57 3, 7(a) Servicing and Liquidation.
SOP 50 56 1 includes the material previously contained in Part 1 of SOP 50 10 6 1. As described on the SBA website: “This SOP defines criteria for becoming an SBA lender, types of delegated authority, a brief overview of how SBA conducts oversight of SBA lenders, processes for loan reporting, Secondary Market transactions, loan transfers and securitization”. Of particular note, the new SOP reflects the regulatory changes made by the Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization (88 FR 21890) and in Information Notice 5000-846918, Community Advantage Small Business Lending Company Conversion (effective May 1, 2023).
