Something almost slipped past me last month: SBA’s updated 7(a) Loan Submission Checklist. In my defense, this Checklist didn’t get past me altogether because it’s marked, “Updated May 2024.” And technically, it was still May 2024 when I found it. So there it was, staring me in the eyeballs and I hadn’t even given it any fanfare!

So, Ta Da!! Old Stuff. New Stuff. Some Changes. A Rundown:

  • First, the Checklist has 10 Tabs, as if fashioned like other SBA 10 Tabs. Yet while the Checklist lists 10 Tabs, it names just 9: Tab 3 is nameless and apparently requires no exhibit. But look back at the previous checklist, and you’ll see that Tab 3 was for the “Draft Loan Authorization.” All non-delegated lenders were required to include that draft in Tab 3. Since Loan Authorization is now a thing of the past, it’s a dandy time to eliminate the requirement to submit it with the application.
  • The Credit Memo still goes in Tab 2, although the instructions reflect the change in the submission threshold for loans from $350,000 to $500,000 in most cases.
  • Documentation of Alien Status has been dropped from Tab 4.
  • Although a Business Valuation is still filed in Tab 5, that’s where you’ll also file copies of Notes to be Refinanced.
  • Business Financials still go in Tab 6, and Affiliate Statements go in Tab 7.
  • Tab 8 has lost some weight as Franchise documents are no longer required.
  • Tab 9 is still where the Appraisal and the Environmental will hang out;
  • and Tab 10 is where you’ll file Lawsuit documents, Judgments, and Bankruptcy, along with other fun stuff.

So, 7(a) loan packagers, the May 2024 Loan Submission Checklist should be staring you right in the eyeballs, too. Better start using it.

And if you’re bemoaning having to memorize this 10 Tab Checklist, consider the unfortunate  504 loan packager: There are 28 SBA-required exhibits for a 504 application! They haven’t changed in a couple of years. Maybe it’s time.

Richard Jeffrey, Senior Associate
Chief Underwriter