|
The FTA has released the 2023 detailed monthly schedule of final reporting due dates and guidelines for 7(a), 1112 Debt Relief, and PPP loans. The CY 2023: Due Dates Schedule can also be found on the FTA Wiki.
Lenders must submit the month-end report via the 1502 Gateway within the SBA Capital Access Financial System (CAFS) no earlier than the first calendar day of the current month and no later than the schedule of final reporting due dates published on the FTA Wiki.
7(a) 1502 Report – Monthly
SBA Form 1502 loan and payment reporting for 7(a) loans is due to the Fiscal Transfer Agent (FTA) via the 1502 Gateway within SBA Capital Access Financial System (CAFS) on the 3rd of the month, or the next business day if the 3rd is not a business day. The SBA allows a grace period of an additional two business days after the due date. 1502 payment instructions are available on the FTA Wiki.
If the FTA receives a regularly scheduled secondary market payment after the grace period, a secondary market late payment penalty to the SBA is assessed. SBA Form 1086, Secondary Participation Guaranty Agreement, describes the components of the late payment penalty. Lenders are billed after the 20th of each month for late penalties assessed for the prior month from latepenalty@sba.gov. Late penalties are due to the FTA with the Lenders’ next monthly Form 1502 in the Remittance Penalty column.
Lenders are separately responsible for secondary market 1502 deadlines for borrower late payments and prepayments as defined by SBA Form 1086.
Section 1112 Report – Monthly
The Section 1112 Report for the CARES Act, Section 1112 Debt Relief Program is due to the FTA via the 1502 Gateway within CAFS on the 7th day of each month, or the next business day if the 7th is not a business day.
PPP 1502 Report – Monthly
SBA Form 1502 loan reporting for PPP loans is due to the FTA via the 1502 Gateway within CAFS on or before the 15th of each month, or the next business day if the 15th is not a business day. Lenders must continue to use separate 1502 reports for PPP loans and 7(a) loans and comply with the distinct deadlines for each report.
SBA has issued Policy Notice 5000-840468, given the unique terms and structure of the COVID EIDL product, there was a need to establish specific instructions and requirements for collecting the pertinent documentation and information needed for reviewing and make final decisions to approve or deny different servicing requests. SBA focused on aligning these servicing processes with the loan origination streamlined guidelines that were established while adhering to existing policy and SOP guidance, to the extent possible, with utilization of our existing systems and processes. This Notice, and the memos referenced in this Notice, set forth the special servicing policies and procedures applicable to COVID EIDLs. All other requirements in SOP 50 52 (2) apply to the extent they do not conflict with this Notice, or the memos cited in this Notice.
- The Paid in Full (PIF) process was modified for COVID EIDL to accommodate borrowers. The COVID EIDL Servicing Center (CESC) can send a COVID EIDL-specific PIF letter to the borrower, in place of sending the original note stamped as PIF, after verification that the final payment is posted and cleared. If the loan was secured, the PIF letter will include the filing instructions for the borrower to have the UCC collateral released.
-
Automatic deferment of the first payment due date for all COVID EIDLs is 30 months from the date of the note. Borrowers were advised that:
- Interest will continue to accrue on the loans during the deferment.
- Borrowers will not receive monthly payment notices (SBA Form 1201) during the deferment period.
- Borrowers are strongly encouraged to create an account in SBA’s Capital Access Financial System (CAFS) to monitor their loan status.
- Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
- After the automatic deferment period ends, borrowers will be required to resume making regular principal and interest payments.
-
Hardship requests:
- For loans in an amount of $200,000 or less, a hardship application automated option will be available in CAFS for reduced monthly payments. This consists of 6 months of payments in a minimum amount of 10% of the normal monthly payment amount (with a minimum of $25), with no documentation or financial analysis required.
- For loans in an amount greater than $200,000, a Borrower must provide a completed Request for Hardship Accommodation, that includes borrower financial information, signed by all owners and guarantors. This consists of 6 months of payments in a minimum amount of 10% of the normal monthly payment.
- For loans in the hardship plans above, Borrower may choose to make payments larger than the minimum. Regular payments will resume and be required after the 6-month hardship relief period, unless Borrower obtains an additional hardship accommodation.
-
Collateral action processes for loans in Regular Servicing Status were revised as follows.
-
Release of Collateral COVID EIDL release of lien/collateral requests also included partial lien release requests in conjunction with the replacement, expansion, or improvements to business assets. Release of lien requests will be reviewed, analyzed, and decided based on the situation and the below requirements.
- Completed application for Release of Collateral, that includes the following information:
- Business Name
- Business Type
- Loan Number
- Indication of Full or Partial release
- Business operating status
- Detailed statement about the need for release
- Information on new Lien, if applicable
- Detailed listing of collateral covered by UCC or other collateral with make/model and real estate, if applicable, with estimated values
- Require a “fully executed” Asset Purchase Contract if selling the collateral
- List of all owners
- Signatures
- Borrower authorization
- Copy of the UCC search indicating SBA’s lien position (Provided by the lender or the requesting party).
- If business is closed, copy of dissolution papers or final tax returns.
- Proof of insurance as required on Loan Authorization and Agreement.
-
Subordination of Collateral COVID EIDL subordination requests are typically requested to refinance an existing loan(s) secured by a senior lien with more favorable terms for the borrower OR to accommodate short term financing needed for the borrower (Operating Lines or Credit, Factoring Agreements, Borrowing Base Lines of Credit). Subordination requests will be reviewed, analyzed, and decided based on the situation and the below requirements. Monetary consideration is not a requirement on subordinations to SBA 7a/504 Express/Export Express loans.
- Completed application for Subordination, that includes the following information:
- Detailed statement about the need for subordination
- Business Name
- Loan Number
- Business Type
- List of all owners and ownership percent of each
- Signatures
- Borrower Authorization
- Commitment Letter/Agreement
- Information about collateral/lien to be subordinated
- Identifying information, such as VIN or serial numbers
- Copy of the UCC search indicating SBA’s lien position
- Proof of Hazard Insurance
-
Assumption is when there is a change of the legal structure (borrower business changing from Corp. to LLC) or the borrower business is being purchased by another business entity and the assumption is needed to ensure repayment ability. Assumptions will generally be approved if it is due to a change in legal structure with the same ownership (even if the Assumptor was not in operation prior to January 31, 2020), or due to a demonstrated hardship sale of the business. SBA will request and review information regarding Assumptor’s relevant industry experience and likelihood of success in operating the business and repaying the loan.
(In assumptions, SBA may require a partial or full paydown depending on many factors including the amount of the EIDL, the amount and structure of the consideration paid for the sale of the business, and the circumstances of the business.)
- The Borrower must submit the following, and any follow-up information and documentation requested by SBA.
- Completed application for Assumption, that includes the following information:
- Business Name
- Business Type
- Loan Number
- Current status of Business
- List of current owners
- Other SBA loan information
- Signature
- Purchase agreement (Copy)
- Detailed letter of request and statement of need
- Borrower authorization
- Copies of previous two (2) years federal tax returns for assuming party
- Most recent YTD profit and loss statement of the assuming party
- Organizational documents of the assuming party
- Certificate of Good Standing of the assuming party
- Proof of insurance as required by Loan Agreement
-
Change in Ownership involves the same borrower business (LLC or Corp.), but with different individual owners. SBA will consider the request but may not always approve. SBA will review the information provided regarding the new ownership’s relevant industry experience and likelihood of success in operating the business and repaying the loan.
(In change of ownerships, SBA may require a partial or full paydown depending on many factors including the amount of the EIDL, the amount and structure of consideration paid to the exiting ownership, and the circumstances of the business.)
- The Borrower must submit the following, and any follow-up information and documentation requested by SBA.
- Completed application for Change of Ownership, that includes the following information:
- Business Name
- Business Type
- Loan Number
- Detailed letter of request and statement of need
- List of current and proposed owners
- Other SBA loan information
- Signature
- Purchase Agreement (Copy)
- Borrower authorization
- SBA Form 912
- Copies of previous two (2) years federal tax returns for business
- Amended Organizational Documents
- Status of Business
- Proof of Insurance as required by Loan Agreement.
If you have any questions regarding this Notice, please contact The COVID EIDL Servicing Center elpasodlsc@sba.gov and covideidlservicing@sba.gov.
The EIDL Loan is a Direct Loan from SBA to the businesses or individuals including non-profits. As a reminder, the terms of the COVID-19 EIDL loan are:
- Maximum $2,000,000 Loan
- Loans over $25,000 have a blanket UCC filed
- Loans over $200,000 have personal guarantees
- Loans over $500,000 have real estate mortgages
- Interest rate of 3.75% for for-profit business / 2.75% for non-profit business
- Maximum term of 30 years
- 30 month deferment period
- Interest has been accruing since loan disbursement
- COVID EIDL Loans will NOT be forgiven
- Borrowers can access their loan information by creating an account at https://caweb.sba.gov/cls/dsp_login.cfm
- Borrowers can make payments on their loans via www.pay.gov using the SBA Form 1201
- Borrowers can mail payments to the following mailing address, although electronic payments are the preferred method:
SBA
P.O. Box 3918
Portland, OR 97208-3918
|
Emprise Bank
|
10
|
$2,224,000
|
|
Bank of Hays
|
8
|
$2,373,500
|
|
The Kearny County Bank
|
5
|
$3,969,000
|
|
Equity Bank
|
3
|
$1,915,000
|
|
First Bank of the Lake
|
2
|
$722,000
|
|
Farmers Bank & Trust
|
2
|
$276,400
|
|
Carson Bank
|
2
|
$135,000
|
|
Community First National Bank
|
2
|
$84,000
|
|
GBank d/b/a Bank of George
|
1
|
$3,255,000
|
|
Celtic Bank Corporation
|
1
|
$2,345,500
|
|
The Kearny County Bank
|
$3,969,000
|
5
|
|
GBank d/b/a Bank of George
|
$3,255,000
|
1
|
|
Bank of Hays
|
$2,373,500
|
8
|
|
Celtic Bank Corporation
|
$2,345,500
|
1
|
|
Emprise Bank
|
$2,224,000
|
10
|
|
Equity Bank
|
$1,915,000
|
3
|
|
Citizens Bank
|
$1,407,400
|
1
|
|
Fidelity Bank, National Association
|
$1,280,000
|
1
|
|
Craft Bank
|
$1,250,000
|
1
|
|
First Bank of the Lake
|
$722,000
|
2
|
|
Frontier Financial Partners, Inc.
|
$3,793,000
|
1
|
|
Heartland Business Capital, Inc.
|
$2,189,000
|
1
|
|
Rural Missouri, Inc.
|
$616,000
|
1
|
LENDER TRAINING
How to Navigate SOP’s in Word Format webinar – Tuesday, January 17th, 10:00 am CST Register here
3rd Wednesday SBA Q&A call- Wednesday, January 18th, 10:00 am CST Register here, join here, call in 316-448-1634, Conference ID: 716 562 840#
Loan Servicing webinar – Tuesday, January 24th, 10:00 am CST Register here
10 Tab Purchase Package webinar – Tuesday, February 7th, 10:00 am CST Register here
3rd Wednesday SBA Q&A call- Wednesday, February 15th, 10:00 am CST Register here, join here, call in 316-448-1634, Conference ID: 716 562 840#
Franchise Lending webinar – Tuesday, February 21st, 10:00 am CST Register here
3rd Wednesday SBA Q&A call- Wednesday, March 15th, 10:00 am CST Register here, join here, call in 316-448-1634, Conference ID: 716 562 840#
BORROWER TRAINING
EIDL Loans-What Borrowers Should Know – webinar – Wednesday, January 18th, 11:00 am CST Register here
NATIONAL QUARTERLY CONNECT CALLS:
TBD
Subscribe to or modify preferences for SBA OFA’s 504 news
Subscribe to or modify preferences for SBA OFA’s 7(a) news
 |
|
How can SBA lending help you serve more clients? Please provide your comments and suggestions to us at wichita_do@sba.gov
|
 |
|
Do you have three minutes? Take SBA’s Customer Experience Feedback Survey to help us better serve you. Your feedback is valuable and will help us better determine how we can improve our services. This survey is intended for current and prospective small business owners who have interacted with an SBA office. All responses are anonymous. Thank you in advance for your time. Launch Survey HERE
|
Wichita District Office – Office of the District Director:
Wayne Bell, District Director – 316-269-6566 – Wayne.Bell@sba.gov
Sarah Haymaker, Deputy District Director – 316-250-5612 – sarah.haymaker@sba.gov
Wichita District Office — Lender Relations Staff:
Janelle Jones, Lender Relations Specialist – 202-845-4184 – Janelle.Jones@sba.gov
Christie Henry, Lender Relations Specialist – 316-272-6023 – Christie.henry@sba.gov
El Paso Disaster Loan Servicing Center, elpasodlsc@sba.gov or 800-487-6019
Birmingham Disaster Loan Servicing Center, bham.realty@sba.gov or 800-736-6048
Disaster (EIDL loans or advances/grants): DisasterCustomerService@sba.gov or 833-853-5638
Electronic Statements: estatements@sba.gov
Cash Processing/1502 Reporting: 1502@sba.gov
Customer Service: fta@sba.gov
Late Penalties: latepenalty@sba.gov
Settlement Express: settlementexpress@sba.gov
Prepayments or Lender Repurchases: 10daynotice@sba.gov
Industry Outreach: fta-noreply@sba.gov
Loan Reporting Discrepancies: discrepancyltr@sba.gov
Tax Certification: ftatax@sba.gov
SBA Repurchase: sbademands@sba.gov
PSU Online Inquiries: psuonline@sba.gov
PPP Platform: help@ussbaforgiveness.com
|
