[UPDATE] This process has been superseded by SBA Notice 5000-852522, effective December 6, 2023.
On November 27, 2023, SBA emailed its subscribers instructions for requesting policy exceptions to the SOP 50 10 7.1 requirement that, when the loan applicant/borrower will be operating out of leased space, the term of its lease, including options exercisable only by the borrower, must equal or exceed the 7(a) loan term. [SOP 50 10 7.1, p. 37.] Per the information provided, SBA intends to issue a Procedural Notice that will modify the existing policy. But since that notice may not be issued for several weeks, the SBA message instructs 7(a) lenders to email requests for exceptions to the existing policy to Ginger Allen, Chief, 7(a) Loan Policy Division ([email protected]). Once granted, the policy exception will allow a 7(a) lender to proceed with processing the loan using its delegated authority. In the alternative, the lender may submit the application for non-delegating processing to the Loan Guaranty Processing Center (LGPC) which also is authorized to grant the necessary policy exception. See the email message for addition guidance regarding the policy exception application process. [This change also applies to 504 loans with policy exception requests being directed to Linda Reilly, Chief, 504 Loan Policy Division ([email protected]).]
