SBA published Procedural Notice 5000-847482, Revision to SBA Procedural Notice 5000-846991 for the 7(a) Loan Program (effective May 26, 2023). The new notice officially revises SBA Procedural Notice 5000-846991 which implemented the change in the Final Rule on SBLCs that removed the requirement for a Loan Authorization. [SBA provided informal notice of this revision on May 18, 2023.]
For the 7(a) Program only, the new notice delays, to August 1, 2023 (the date on which SOP 50 10 7 will take effect), removal of the loan Authorization. For loans approved through that date, lenders should continue to use the procedures in SOP 50 10 6, Part 2, Section B, Chapter 5, Paragraph A (pp. 433-450), which include instructions for submitting to SBA a Loan Authorization generated using the existing Boilerplate. For SBA Express and Export Express loans, lenders may use the Boilerplate or the abbreviated version created for those programs.
The May 26 notice also reminds lenders that SBA Procedural Notice 5000-846607, Implementation of the Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs, remains in effect. So, during this interim period, lenders are allowed to modify the Loan Authorization to conform with the new requirements for equity and equity injection.
