During the SBA 7(a) Connect Quarterly Update on January 9, 2024, SBA clarified that two of the forms that were recently updated and posted to the Agency website are no longer required in connection with SBA-guaranteed loans:
- SBA Form 1050, Settlement Sheet (posted to SBA website on December 20, 2024)
While this form remains available on the SBA website, the Agency clarified that its use is no longer required for any disbursement of any size 7(a) loan. SOPs 50 10 7 and 7.1 removed the requirement that this form be used to document the first disbursement on Standard 7(a) loans (those over $500,000).
- SBA Form 1971, Religious Eligibility Worksheet (posted to SBA website on December 26, 2024)
SBA clarified that use of this form is no longer required for any loans and that it has been removed from the Agency website. On August 1, 2022, as part of its Regulatory Reform Initiative (87 FR 38900), SBA deleted the regulation that made a business ineligible if it is principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs and SOPs 50 10 7 and 50 10 7.1 removed the prohibition against using loan proceeds for religious activities and the requirement for use of SBA Form 1971.
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