It’s here! SBA Information Notice 5000-20043 announces the long-awaited arrival of SOP 50 10 6. The new SOP is effective on October 1, 2020 and contains significant procedural updates and format changes. Notably, identical provisions applicable to 7(a) and 504 programs will only be listed once. Making life easier for all of us, the updated, searchable navigation has links leading to forms and additional information throughout. As always, SBA encourages thorough readings of the Information Notice and the SOP to better understand the updates and changes.
And as always, we’ll help. We’re diligently combing through the new SOP and will share with you our take, and our analyses of any significant changes we find. Stay tuned!
So what else is going on? As we come to the close of SBA’s fiscal year (9/30/2020) here are some reminders of what’s going on in our industry:
- As JRB’s Lori McCausland reminded you in her recent eBulletin, availability for CARES Act Section 1112ends 9/27/2020 unless extended by Congress.
- And significantly, many existing SBA loans that received the benefit of CARES Act Section 1112 beginning in March/April 2020, will receive the last of their six months payments beginning in September/October unless extended by Congress.
- The Paycheck Protection Program (PPP) Forgiveness Platform is open and borrowers will start to submit their PPP Forgiveness applications. If you’re using a vendor to help you process and submit Forgiveness applications to the platform, be sure you have your Lender Service Provider agreements signed and approved by SBA.
And then, there’s business as usual. Almost. About now, your institution is in strategic budget planning sessions for the next fiscal year. So finally, one more reminder as we begin to wind down this year and look to next year. Remember to factor into your budget – and schedule – that annual SBA loan review. It’s important to ensure that the loans you put on the books in 2020 are compliant with the recent changes in SBA underwriting due to COVID-19 and the new SOP primarily for loans SBA approves on or after 10/1/2020.
Stay safe and take care.
P.S. Questions about the new SOP? Ask JRB