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Disbursing funds for an SBA 7(a) loan isn’t just about getting the money to the Borrower. It’s about doing it right, so you stay well within SBA compliance rules. SBA’s SOP 50 10 8, effective June 1st, 2025, includes specific guidance on disbursement rules and required documentation. Here’s what you need to know, so you’ll stay compliant every step of the way.

In the world of SBA lending, time is rarely on your side when a loan begins to go sideways. What starts as a borrower missing a payment can rapidly snowball into a full-blown default, asset deterioration, or legal complications — and before you know it, you’re staring down an SBA loan liquidation process with escalating losses.

I’m just back from this year’s America East conference, and one of the things I heard from several attendees was – acquisitions are still happening, and the people inheriting the acquired bank’s SBA portfolio are concerned.

Too often, loan changes occur—whether minor borrower updates or significant structural modifications—without being fully reflected in E-Tran. That oversight can result in servicing issues, audit flags, or worse: denial of the SBA guarantee. Here’s why every lender should treat E-Tran updates as an important part of their SBA loan servicing workflow.

Loan Applicants have always had to obtain appropriate insurance, and Lenders have always had to ensure it’s included in the Terms & Conditions and the Credit Memo. No new news there. But there are some new updates that Lenders should be aware of to make sure they remain in SBA compliance.

Applicant certification requirements under the recently-released SOP 50 10 8 are a mix of new, changed, and familiar. Many of the Applicant certifications can be found in the current Form 1919 from February 2025. However, we’ve heard that an updated Form 1919 is on the way, though its release date – and its changes – haven’t yet been announced.

Back in December, we believed FTA’s SBA training looked reasonably well done and complete. While there have been many opportunities for training sessions, there’s still confusion surrounding error codes and exactly how to fix them. We can offer Lender consulting services to support your team while they work their way through these issues.

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 Office of Credit Risk Management (OCRM) picked your SBA portfolio to conduct an audit. It could be due to anything from a random...

We often see Lenders forget to take advantage of the support a Lender Service Provider (LSP) can offer. So, when should you lean on an...

(Did you miss parts I and II, reviewing what to focus on before and during a bank merger for SBA 7(a) teams? Part I is here , and part II...

Banks have a deserved reputation of being traditionalists, slow to adopt new technologies and often bound up in “how we’ve always done it...

For a new business – or any business involving a complete change of ownership – to qualify for a loan, SBA requires fully-documented...

SBA Consultant We all have that thing – you know, the thing that keeps our attention, that energizes and challenges us.  When I was a...

Working capital. We talk about it a lot with our clients during our SBA training sessions. It might be a discussion in one of the lender...

We’re nine months into a whole slew of SBA SOP changes. Your SBA packaging processes and procedures should be fully updated by now, and...