The Information Notice described below was posted to SBA’s website on December 19, 2024, as Information Notice 5000-860909 with an effective date of December 17.
In an email sent to lenders on December 16, SBA provided advance notice of its intent to issue an Information Notice to provide guidance regarding the processes by which specified Community Advantage Small Business Lending Companies (CA SBLCs) will be able to:
- Increase their maximum loan size from $350,000 to $500,000; and,
- Expand their geographic lending territory beyond the area specified in the lender’s business approved by SBA.
The notice has not yet been assigned a number or an effective date.
The notice states that, effective January 1, 2025, SBA will increase the CA SBLC loan maximum to $500,000 for all active CA SBLCs with satisfactory SBA performance that are in good standing as determined by SBA. These criteria are defined in the notice. SBA will notify the lenders that meet the specified conditions individually that their maximum loan size has been increased, and after this notice is received from SBA, the lender may begin making loans greater than $350,000.
In addition, beginning January 1, 2025, SBA will permit CA SBLCs meeting the satisfactory performance and good standing criteria described in the notice to apply for authority to expand the geographic areas in which they are authorized to make 7(a) loans. The notice provides a detailed list of the required application documents and instructs CA SBLCs to send applications for territory expansions to [email protected].
