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Download SBA Fresno Commercial Loan Servicing Center SBA Fresno Commercial Loan Servicing Center Presents GUIDANCE ON SBA 7A LOAN SERVICING PURCHASING 1. INFORMATION ON THE SERVICING CENTER

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  • 1

    SBA Fresno

    Commercial Loan Servicing Center

    Presents

    GUIDANCE ON SBA 7A LOAN SERVICING & PURCHASING

    1. INFORMATION ON THE SERVICING CENTER

    2. WHAT REQUESTS ARE SUBMITTED TO SERVICINGAFTER FINAL DISBURSEMENT7A MATRIX (12/05/2015 VERSION)

    3. UNILATERAL ACTIONS (PN 5000-1329)

    4. 1502 REPORTINGMOST COMMON ERRORSCOLSON CONTACT INFORMATION

    5. ACTIONS REQUIRING SBA APPROVALWHAT INFORMATION IS NEEDED FOR SBA REVIEWSOP 50-57SOP 50-10 MOST COMMON SERVICING REQUESTS2237 FORM

    6. HOW TO PROTECT YOUR GUARANTY

    7. RESOURCES

    8. QUESTIONS

    AGENDA

  • 2

    Green = FresnoYellow = Little Rock

  • 3

    Changes After Final DisbursementSBA considers a partially disbursed revolver as fully disbursed.

    Servicing Center services all 7a Loan Programs including ARC Loans in its jurisdiction (borrower physical address).

    Use 7a Lender Matrix for guidance on what requests require SBA approval.

    Loan Processing SOP 50-10 that is in effect at the time loan was approved for increases, interest changes, guaranty percentage changes, loan program requirements and assumptions/ownership changes.

    Loan Servicing SOP 50-57-2 (7A).

    Delegated versus Non-Delegated Once loan fully disbursed, all 7a lenders have delegated

    authority.

    Servicing and Liquidation 7(a) Lender Matrix, Version 12 12/01/15

    815

    7(a) Lender Matrix (continued)

  • 4

    SBA Procedural Notice

  • 5

    Servicing Center E-Tran Servicing 1502 ReportTermination of Guaranty on loan in Liquidation status (Express/Pilot loans).

    Returning loan from Liquidation to Regular Service status (Express/Pilot loans)

    Marking a loan Paid in Full

    Classifying loan in Liquidation status

    Marking a loan Paid in Full, status code 6

    Classifying loan in Liquidationstatus, status code 5

    Decrease loan amount or guarantypercentage on disbursed loan

    Change interest rate; spread; and/or base rate.

    Cancellation of undisbursed loan

    Change loan from revolver to term.

    Basic clerical error such as changes to EIN, SS#, and/or Tax ID #

    Change legal/trade name and address.

    Adding obligor, which does not include a release of any obligor

    Change maturity date on loan that has not been matured.

    Change of use of proceeds, which does not involve an increase/decrease to loan amount

    E-Tran Codes From E-Tran Central SBA E-Lend Servicing Page

    How Do I Get the Codes Required by Some XML Elements? All codes required by XML elements in E-Tran are defined in the SBA

    system called "Code Tables". If you don't already have access to the Code Tables system: Return to Choose Function by clicking the Exit button at top of page. From the Choose Function page, click the Access button at top of page. Open the "Code Tables" folder. Check the first checkbox ("Code Tables"). Scroll down to bottom of page and press the Submit button. After receiving access to Code Tables, a new Code Tables hotlink will

    appear on your Choose Function page. Use this hotlink to retrieve the codes and their meanings.

  • 6

    For Center Assistance on E-Tran Servicing: Please contact your local District Office for E-Tran

    Guidance and Training

    Contact for Fresno CLSC800-347-0922

    Laura Crombie laura.crombie@sba.gov

    extension 2903

    Monica Williams monica.williams@sba.gov

    extension 2905

    Percy Laceypercy.lacey@sba.gov

    Extension 2957

    Loan disbursed and guaranty fee not paid within 90 days of approval.

  • 7

    1502 Common Errors (continued)

    Colson Services Webpage

    Colson Services has a lot of good information on their website.

    You can check on current and past SBA loan rates.

    See the latest SBA updates relating to your SBA loan reporting.

    Get training on how to prepare and submit your monthly 1502 report.

    http://www.colsonservices.com/main/index.shtml

    20

    The Colson 1502 Reporting Center

    21

    Colson Services has useful information on a whole series of 1502 questions.1502 connectionReporting InformationForms and CalculatorsData Accuracy Info.Filing InformationSBA LinksMisc. InformationContact US

    http://www.colsonservices.com/main/1502_reporting.shtml

  • 8

    Helpful numbers for Colson Services

    Use the Contact US option to find people who can help or offer training on 1502 reporting

    22

    http://www.colsonservices.com/main/contact.shtml

  • 9

    SOP 50 -10 SOP 50-10-4

    Loans approved 01/29/99 to 07/31/08

    SOP 50-10-5 (A) Loans approved 08/01/08

    to 09/30/09 SOP 50-10-5 (B)

    Loans approved 10/01/09 to 09/30/10

    SOP 50-10-5 (C) Loans approved 10/01/10

    to 09/30/11 SOP 50-10-5 (D)

    Loans approved 10/01/11 to 05/31/12

    SOP 50-10-5 (E) Loans approved 06/01/12

    to 12/31/13 SOP 50-10-5 (F)

    Loans approved 01/01/14 to 09/30/14

    SOP 50-10-5 (G) Loans approved 10/01/14

    to April 30, 2015

    SOP 50-10-5 (H) Loans approved 05/01/15

    or after

  • 10

    It is not necessary to include a copy of the borrower financial statement or supporting documents provided that they are adequately analyzed in the credit memo.

    SOP 50-57-2Should versus Must

    Should =Guideline. Recommended but not required. Lender will

    have to document file to ensure credit decision based on prudent lending practices followed when should requirement is not followed.

    Must = Required. Will need exception to policy by SBA.

  • 11

  • 12

    Increases Express Revolvers Not allowed on Recovery Act or Jobs Bill Loans. Funds have

    exhausted.

    Increase on these types of loans must be requested within 7 years from the date of approval.

    For maximum loan amount, refer to the SOP 50-10 which was in effect at the time the loan was approved.

    Any increase request on an Express Revolver Loan that is above 33% above the original loan amount must include an analysis of appropriate credit and risk factors.

    Additional guaranty fee due within 30 days from Date of SBA approval of increase. Note: if lender increases in E-TRAN fee is due.

    CAPLines Maturity on CAPLines approved after 10/1/11 = Revolving period no greater than

    10 years, except on Builders Capline which cannot exceed 5 years.

    Maturity on CAPLines approved prior to 10/1/11 = Revolving period no greater than 5 years.

    Increases: Not allowed on Recovery Act or Jobs Bill Loans. Funds have exhausted. Increases on loans approved prior to 10/1/2011, limited to one increase and

    no more than 33.3% above the original loan amount. On what is required for increase request, please refer to the 50-10 that was in effect at time loan was approved.

    Loans approved on or after 10/1/11, SOP 50-10-5-D, Subpart B, Chapter 3, Paragraph D-2 that revolver loans must be requested within 10 years from the date of loan approval. Lenders request must include an analysis of the appropriate credit and risk factors along with the borrowers cash flow can support the increased payment amount.

  • 13

    Increases Term Loans

    Not allowed on Recovery Act or Jobs Bill Loans. Funds have exhausted.

    Increases on principal balance not allowed. Except for care and preservation expenses (real estate taxes, hazard/life/flood insurance). If loan sold on secondary market, separate note receivable is to be created.

    Any increase request on a Standard 7 (a), CLP, PLP, SBA Express and Pilot Loan Program term loan that is more than 20% of the original loan amount or is more than 18 months after the original approval date, the lender must include with its request its analysis showing the purpose of the increase is the same as the original purpose of the loan and the borrowers cash flow can support the increased payment amount.*

    For maximum loan amount, refer to the SOP 50-10 that was in effect at the time the loan was approved.

    *Applies to non-Recovery Act loans approved on or after 10/01/09. All other loanswill require an exception to policy for an increase over 20% of loan amount or morethan 18 months after the original approval date.

    Increases Term Loans (continued)

    Increase must be requested within 48 months from the approval date.*

    If sold on the secondary market, SBA cannot approve increase without investor approval.

    Additional guaranty fee due within 30 days from Date of SBA approval of increase.

    *Applies to non-Recovery Act loans approved on or after 10/01/09. All other loanswill require an exception to policy for an increase over 20% of loan amount or morethan 18 months after the original approval date.

  • 14

    Analysis and review of request should follow requirements found in SOP 50-57-2 Chapters 6 and 7.

    May be extended for up to 10 years beyond its original maturity date if:

    The extension is requested before the SBA loan guaranty expires, less than 180 calendar days after the maturity date.

    Will aid in orderly repayment of the loan.

    If applicable, additional guaranty fee will have to be paid within 30 days of approval or entire loan will cancel.

    Analysis and review of request should follow requirements found in SOP 50-57-2 Chapters 6 and 8.

    General Requirements:

    It will help the long or short term needs of the Borrower without unduly impairing the ability to recover on the SBA loan.

    Satisfactory credit history. Be to a specific amount and should not extend to future

    advances. Sufficient equity to secure the SBA loan after the prosed request. Terms should be set out in document signed by all parties.

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