u s small business administration

The New 10 Day Notice Processing Application

The FTA’s new 10 Day Notice Processing Application is now available for Secondary Market Lenders to submit the 10 Day Notice and Prepayment Certification specified below.  

Lenders can access this application on the SBA’s Capital Access Financial System (CAFS). The 10 Day Notice Processing Application is the one stop shop for lenders to submit, view, and cancel 10 Day Notices as well as submit Prepayment Certifications. The application replaces the previous E-mail inbox used for both 10 Day Notices and Prepayment Certifications, which will be decommissioned in one week on January 15, 2023.

Per Section 7 of SBA Form 1086, Lenders are required to transmit written notice to the FTA of Borrower’s intent to make a partial or full prepayment of principal. Such prepayment can be from a refinancing or otherwise. The written notice must be received by the FTA at least ten (10) business days prior to prepayment date. The Lender is required to also submit a Prepayment Certification, which clarifies if the funds received are due to a Borrower’s prepayment, Lender repurchase, or an emergency repurchase. 

Other new features include: 

  • The ability to see the current FTA Balances and Interest Paid-To-Date up front.  

  • A new dashboard where Lenders can view a record of all previous notices across statuses; active, expired, and canceled. 

  • The ability to cancel 10 Day Notice requests. 

To access this application, log into CAFS using your User ID and Password. Then, click on the “Loans” Dropdown Menu and select “FTA Portal.” Under “FTA Applications,” expand the “Payoff Processing” Dropdown Menu. Finally, click on the “10 Day Notice Processing Application” Tab.