Summary of Recent SBA Changes

SBA has issued a lot of new information in the last few weeks, creating a very real challenge for SBA teams trying to stay on top of all the new requirements and keep their SBA portfolio in compliance.

To help you support your SBA Lending teams and your Borrowers, we’ve compiled a quick summary. We’ll provide more details in the upcoming weeks; for now, here’s what we’re seeing as the most important highlights.

• Lenders must now enter 81% of Beneficial Ownership into Etran along with their dates of birth. (Notice 5000-865754 and Notice 5000-866498)

• Loans approved on or after March 7, 2025 require Borrower certification that none of the Beneficial Owners are ineligible, and must include Lawful Permanent Resident's alien registration number. This is a must, though SBA has not provided an update to any forms to include this. Lenders, be sure to create this certification form, obtain the information, and retain it for your files. (Notice 5000-865754)

• All Lawful Permanent Residents must now provide a G845 Form, Authorization, and a copy of their Resident Alien card to Lender. Lenders must then submit documents to SBA for review; they will provide an email of clearance to the Lender. (Notice 5000-864754)

• For loans processed non-delegated (GP) requiring an environmental report, SBA concurrence is no longer required if the environmental investigation report shows no contamination. Lender only needs to certify this compliance in ETran. Additionally, ALL environmental reports must be dated within one (1) year of issuance of the SBA loan number. (Notice 5000-866054)

• Finally, as of March 27, 2025, SBA has adjusted the Annual Service Fee and Upfront Guaranty Fee for the remainder of Fiscal Year 2025. (Notice 5000-865758)

The rate of updates should slow down soon (we all hope). In the meantime, if you have questions about how they affect your SBA portfolio, by all means give us a call at 877-576-0819, or drop us a line through our website here.