SBA has issued version 3 of SOP 50 57, 7(a) Servicing and Liquidation. The new SOP was announced by SBA Information Notice 5000-846632, Issuance of SOP 50 57 3, dated May 31, 2023.
Per the notice, changes in the new version of the SOP will take effect on August 1, 2023 (consistent with the date on which SOP 50 10 7 will take effect) and will apply to all SBA 7(a) loans servicing and liquidation actions occurring on or after that date.
The notice states that one of the most significant changes in the new SOP is that, when considering a purchase request, “SBA will apply the requirements of SOP 50 10 and SOP 50 57 in effect at the time of SBA’s guaranty purchase review, unless these requirements result in a determination that is more restrictive upon the Lender than the SOP requirements in effect when the Lender action was taken”. Under prior policy, purchases were decided based on the lender’s compliance with the requirements that were in effect on the date on which the loan was approved or the date on which a servicing action was taken.
The notice also indicates that SBA has updated the guaranty purchase package used by lenders to request that SBA honor its 7(a) loan guaranty. The renamed Universal Purchase Package (UPP) is described as “an intuitive and fillable form that adapts to the circumstances of each loan” that was developed from the Express Purchase Demand Kit (PDK). It will be used for all purchase requests regardless of size and program type. The new UPP will be available on the sba.gov website and the notice indicates that lenders are encouraged to “begin using it in order to realize the benefits of the improvements”. [NOTE: as of 6/1/2023, neither SOP 50 57 3 nor the new UPP was available on the SBA website. NAGGL will update this information to provide appropriate URLs when they are available.]
The notice also includes a summary of some of the other changes included in SOP 50 57 3, but advises users to review the document in its entirety to “ensure a complete understanding of all changes”. Watch for information from NAGGL regarding relevant training.
