While we were making merry over the holidays, we might have missed some new material from SBA, effective right now.1 Yes, SBA’s form-making elves have been holed up in their workshop making new forms. Some forms simply substitute a new version for an older one, while others contain new directions or processes. Each one is worth reading in full. Here’s a quick recap:

Heads up: SBA Form 1050, the Settlement Sheet, has been updated. You’ll need to complete it at the time of the initial disbursement of each of your 7(a) loans.

And as we form folks say: “Out with the old and in with the new!”  There’s a new Form 1919 that requires the identification of everyone who owns at least 20% of the applicant and at least 51% of the owners. Remember to keep the completed 1919 in your files, but submit only the information (not the form) on E-Tran. As for Form 1920, it’s been eliminated entirely.

If  you’ve been eagerly awaiting the new Religions Eligibility Worksheet, SBA Form 1971 – or if like many lenders, it’s been awhile since you had a loan application with a religious component, you’ll be glad to know that the new form has been issued.

Now, don’t take it for granted that you know the procedures for handling these requests when they come along. It’s best to learn the process ahead of time so you’ll be prepared: SBA lenders ─delegated or non-delegated, 7(a) or 504─must submit the completed form to SBA’s Associate General Counsel for Litigation before submitting the application to the SBA Loan Processing Center.

Community Advantage Lenders: Don’t feel slighted. SBA has included a new SBA Form 3518 to be completed and submitted as an Addendum to SBA Form 1919. It’s a very handy form that requires you to specify whether your applicant is LMI, Veteran-owned, or located in a Community Advantage-eligible area.

A Reminder: All 7(a) lenders should be using the new 7(a) Guaranty Fee Calculator included in SBA Information Notice 5000-848801 (8/29/2023). Just remember that if the Guaranty Fee calculated with the Excel spreadsheet differs from E-Tran, the E-Tran calculation prevails. Another handy tool, the Loan Post-Approval Action Checklist, Form 2237 was updated in the fall.

Then of course, there’s 1502, 1112, and PPP 1502 Final Reporting. Got those due dates in your head? I’ll bet you don’t. Here’s SBA’s CY 2024 Due Dates Calendar.

Wishing you all a safe, happy, and prosperous 2024!

Richard Jeffrey, Senior Associate
Head Underwriter

1 SBA Information Notice 5000-852422, 12/26/2023. While the new forms are effective 12/26/2023, SBA allows a 30-day grace period.