Join hosts Paul Long and Tonya Mazurek on this informative episode of SBA Today as they dissect the newest updates in SBA lending practices, focusing on the long-awaited and newly released SOP 5000 updates.

Presented with their signature blend of humor and expertise, they delve into what these changes mean for lenders, the implications for servicing actions, and the renewed importance of personal and business credit scores in loan evaluations. In a detailed discussion rich with practical insights, Paul and Tonya explore the intricacies of the SOP 5057 servicing requirements, effective from April 2025, providing plenty of practical tips for lenders to stay compliant.

They highlight the criticality of maintaining accurate documentation for loan servicing actions, offering reassurance to lenders amidst these changes.

Additionally, they spotlight the reintroduction of equity verification, emphasizing the importance of credible documentation and how these shifts echo SBA’s earlier, more stringent standards. 

Key Takeaways:

• The new SOP 5057 servicing requirements will apply to loans serviced by the SBA from April 15, 2025. It's imperative for lenders to maintain documentation reflective of the SOPs in place when the service action was initiated.
• Personal credit scores continue to outweigh business credit scores in significance, with 90% of lenders considering personal scores over business scores when evaluating loan applications.
• SBA is enforcing strict confidentiality rules, prohibiting its employees from discussing internal information with outside entities, underlining the importance of discretion in communication.
• Equity injection verification is reintroduced, ensuring lenders provide proof of equity sourced in alignment with the SOPs effective at the time of loan issuance.

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Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.