IFS Articles and Industry Resources

Information Notice – 5000-836380 – 504 Fees Effective During Fiscal Year 2023

Each year SBA reviews certain fees payable to SBA by 504 borrowers to determine if any of those fees need to be adjusted to cover the estimated subsidy costs of the 504 loan program. This Notice announces the FY2023 annual service fee (also known as the “on-going guaranty fee”) and upfront guaranty fee for 504 loans. A separate notice will be issued for the 7(a) loan program. The fees are effective for loans approved October 1, 2022 through September 30, 2023.

Procedural Notice – 5000-835230 Guidance on 504 Appraisal Review & Authorizing CDC Closing Counsel to Confirm Franchise Closing Documents Conform with SBA Franchise Procedures and the SBA Franchise Directory

The purpose of this Notice is to revise the procedures set forth in SOP 50 10 6 relating to commercial real estate appraisals that CDCs must submit to the Sacramento Loan Processing Center (SLPC) for approval and to authorize CDC Closing Counsel to review and confirm franchise closing documents are executed properly and conform with SBA franchise procedures and the SBA Franchise Directory. These revisions and guidance are effective as of the Effective Date of this Notice.

SBA Notice 5000-830948

The interest rate on Section 7(a) Direct Business Loans is 3.13 percent (3.13%) for the fiscal quarter beginning April 1, 2022. The optional peg rate for fluctuating interest rates on guaranty loans is 2.00 percent (2.00%) for the April – June quarter of FY 2022. Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any third party lender’s commercial loan which funds any portion of the cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.

SBA Procedural Notice 5000-829416 Revisions to SOP 50 10 6 Financial Information Verification Procedures to Allow for the Use of IRS Forms 4506-C or 8821 for 7(a) and 504 Loans

Transcript/Verification of Financial Information process Lenders and Certified Development Companies (CDCs) (collectively, “SBA Lenders”) use to verify small business borrower financial information (“financial information verification”). Effective with the date of this Notice, SBA Lenders may use either IRS Form 4506-C, IVES Request for Transcript of Tax Return, or IRS Form 8821, Tax Information Authorization, for purposes of financial information verification.

Procedural Notice 5000-829036

The purpose of this Notice is to revise the guidance provided in SBA Procedural Notice 5000- 823852, “Guidance on the Implementation of the Section 1112 Debt Relief Program for the 7(a) and 504 Programs, Including the Availability of Funds for Section 1112 Payments and the Return of Payments Made for Ineligible Loans; and on Loan Increases Requested on or after October 1, 2021”, effective December 6, 2021, with respect to requests for 7(a) loan increases that were approved on or before December 27, 2020.

Avoid Being Caught Off Guard by SBA Policies

SBA application processing and underwriting requires great attention to detail and planning to successfully navigate the SBA’s application and approval process. After submitting an application to the Loan Guaranty Processing Centers (LGPC), even the most diligent SBA professionals can be caught off guard by a “screen out” or “denial” of the loan application. In most [...]

SBA Policy Changes on the Horizon

On September 28, 2018, the SBA published a proposed rule which will amend various regulations governing its business loan programs. The public commentary period was originally scheduled to expire November 28, 2018. On November 16, 2018 the SBA extended the public commentary period through December 18, 2018. A copy of the easy to read version [...]

Innovative Financing Solutions Wins Philadelphia Top 100 Award!

Innovative Financing Solutions (IFS) has been recognized as a Philadelphia 100 Fastest-Growing Private Company – ranking 29th on this prestigious list. The Philadelphia 100 Award is one of the most sought after awards in the Philadelphia region. IFS’ President, Michael D. Ryan accepted the award at gala event held at The Crystal Tea Room in [...]

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