In this engaging episode of SBA Today, host Paul Long delves into the dynamic world of Small Business Administration loans alongside guest Lance Sexton.

Paul and Lance explore significant changes unfolding in the SBA landscape, including the reintroduction of fees, the latest policy updates, and other critical lending developments. Through lively discussion, they shed light on these changes and their implications for lenders.

SBA's decision to reinstate fees marks the end of a period of no-cost loans, a move aimed at ensuring zero subsidy operations and securing bipartisan support for the lending program.

The episode further unpacks the revised environmental policies, highlighting the necessity of updated reports and how they impact the loan process. The conversation navigates through additional regulatory changes, such as updates in form requirements and imminent SOP updates expected in the quarterly 7A connect call.

Also, student loan servicing shifts under SBA, while significant workforce reductions raise concerns about retaining specialized staff. 

Key Takeaways: 

• SBA is reinstating borrower fees to maintain the zero-subsidy status of its loan programs, known as the "reverse price rollback."
• New environmental policies require real estate environmental reports to be no more than a year old, maintaining transactional transparency and safety.
• Form updates, like the 1919, have introduced slight changes that lenders need to be aware of to remain compliant.
• SBA is making a substantial workforce reduction, cutting 2,700 jobs to realign with pre-pandemic levels while shifting more focus to field operations.
• The SBA responsibility now includes student loan servicing, highlighting the expansion and increased complexity of the agency's roles. 

Are you a business owner or prospective business owner? Let’s see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

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