SBA has issued version 7 of SOP 50 10, Lender and Development Company Loan Programs which will take effect on August 1, 2023. The new SOP continues SBA’s implementation of a number of regulatory changes including, among others –

  • The Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs [88 FR 21074, issued effective 5/11/2023]
  • The Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission and Removal of Requirement for a Loan Authorization (“Final Rule on SBLCs”) [88 FR 21890, effective 5/12/2023]

The new SOP also incorporates numerous changes made by previously issued notices, including, among others:

  • Procedural Notices 5000-846607, Implementation of the Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs (88 FR 21074, effective May 11, 2023)
  • Raising of the Maximum Loan Amount for 7(a) Small Loans (notice effective May 9, 2023); and 5000-846991, Implementation of Removal of the Loan Authorization in accordance with the Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization (88 FR 21890, effective May 12, 2023) (notice effective May 9, 2023).   

Issuance of the SOP was announced by SBA Information Notice 5000-847027, Issuance of SOP 50 10 7 (effective 10, 2023).  That notice states that the requirements in new SOP will apply to all applications received by SBA on or after August 1 and that lenders and SBA staff must continue to use SOP 50 10 6 for 7(a) and 504 applications submitted through July 31, 2023. NAGGL would note, however, that, as indicated above, the existing SOP has been amended by a number of regulatory revisions and notices, so lenders also must comply with those Program Requirements during this interim period. The notice also indicates that SBA is working to update all application forms consistent with the SOP changes. 

The notice provides a “format update”, which includes the fact that Part 1 of SOP 50 10 6 has been removed from the new SOP and will be published separately as SOP 50 56. Current Part 1 contains the requirements relating to Participating in the SBA 7(a) and 504 Loan Programs, with separate sections governing 7(a) Lender Participation and Certified Development Company (CDC) Participation, including the oversight requirements relating to each program. 

The notice also provides a summary of the “significant procedural updates” contained in the revised SOP, but reminds readers that they will need to fully review SOP in order to understand all of the changes. 

As soon as we can complete our in-depth review of the new requirements and prepare course materials, NAGGL will announce training opportunities specifically covering the program changes. We also will be amending our standard course offerings and will begin scheduling classes based on the new requirements as soon as possible. Please monitor naggl.org for updates.