WASHINGTON -- As part of its reform agenda to become easier for lenders to work with, the Small Business Administration has released its modernized Standard Operating Procedure for lender and development company loan programs.
Released March 19, the revised document (SOP 50 10) has been cut from 1,000 pages to 400 and is more logically organized, the agency said. The SOP is directed to SBA's lenders and certified development companies.
In addition, the SOP has been updated as an electronic document using Internet hyperlinks to take the user to the most recent editions of relevant regulations and forms. SOP 50 10 will be available in PDF format at the SBA Website (www.sba.gov) and will be more easily updated. A version of the SOP with enhanced search capabilities will be released as soon as possible. Additional technical improvements are in the process such as an improved search engine, according to SBA.
"Rewriting an SOP doesn't sound glamorous, but it is one of the most important tasks we have undertaken to improve our relationship with lenders and enhance delivery of our loan products," SBA Administrator Steve Preston said. "The previous SOP was long, complicated, and outdated, and lenders cited it as a major impediment to working with SBA. We hope the new document will make it easier for lenders to understand our programs and use our product."
The modernized SOP reflects significant input by program participants including lenders, certified development companies, and SBA employees. SBA actively sought public input on the rewrite and established an electronic mailbox so that all interested parties could submit comments and suggestions. Hundreds of e-mails were received. SBA also consulted with the National Association of Government Guaranteed Lenders and the National Association of Development Companies in developing the revised SOP. SBA considered the many comments and suggestions received when developing the final product.
Although there were substantial structural changes made to the SOP, SBA made only limited policy changes or clarifications in the document. SBA said it will work with lenders and their representatives to incorporate further policy improvements in future iterations of SOP 50 10.
The new SOP is divided in three sections: Lender and Certified Development Company Participation criteria, 7(a) Business Loan Program and 504 Certified Development Company Loan Program.
--msamaad@cutimes.c
