On October 26, 2022, SBA published a Proposed Rule, Affiliation and Lending Criteria for the SBA Business Loan Programs (87 FR 64724), which proposes to amend two parts of the Code of Federal Regulations, 13 CFR 120, Business Loan Programs, and 13 CFR 121, Small Business Size Regulations. Per SBA, the changes included in the regulatory proposal are intended to expand access to capital to small businesses and drive economic recovery.
Proposed changes to the 7(a) and 504 loan program regulations include, among others, changes to the requirements relating to use of loan proceeds, partial changes of ownership, lending/underwriting criteria, etc. The regulatory proposal also includes proposed amendments that would greatly streamline SBA’s affiliation criteria for all of its business loan programs, including 7(a) and 504. Comments on the Proposed Rule are due by December 27, 2022. NAGGL will provide a complete summary of the Proposed Rule and additional information about the regulatory comment process within the next few days.
