There’s always a lot of fun and camaraderie at NADCO’s Annual meeting. This year was no exception. And this year we introduced JRB team member Senior Associate Lori McCausland to NADCO. She’s a long-time JRB team member who is developing our CDC loan servicing product. Thanks to all who made her feel welcome to the 504 side.
But I know you really want to hear about the new SOP and the Re-Authorization bill, right? Well, we’re playing the waiting game. The SOP is in regulatory review, which means that until it’s issued, we wait to see what’s in it.
What we do know. When it’s issued, the next SOP will be the longest in SBA’s history. And news from The Hill on the Re-Authorization bill: Stalled in committee. Among other provisions, this bill would allow a $10 million debenture for manufacturing. Yet we won’t know what the bill looks like until the final version passes and is signed into law.
Updates from the SLPC. NADCO held many break-out sessions on a variety of topics, but the best attended was the session with the SLPC. One of the issues the Center sees in 504 underwriting these days is distinguishing between a business expansion and a business start-up. The SLPC is working to provide some clarity on that issue and has considered NADCO’s feedback. Although there’s no resolution yet, the progress is promising.
The SLPC is still dealing with a number of CDCs that struggle to understand our old friend Affiliation. If your CDC is getting screen-outs because of affiliation analysis, you’re not alone. And until you’ve worked out what is affiliated with what, you cannot begin underwriting, it’s a thorny issue that can pose real challenges. Maybe that’s why I enjoy digging into it. If your CDC is experiencing Affiliation issues, Contact JRB. We’ll give it a go!
Stay tuned for the new SOP along with the final Re-Authorization bill.
Richard Jeffrey
Senior Associate, CDC/504 Programs
richard@jrbrunoassoc.com