Did you notice the new notice?
We’d like to draw your attention to the Information Notice SBA released at the end of December (when you were probably deep in the holiday break), covering updates to several forms, including which are required, which have been retired, and how to report through E-Tran.
That Notice doesn’t cover updates to Form 1050, the Settlement Sheet, which was also released in December with an effective date of 12/20/2023. However, we uncovered several potentially confusing points in their instructions on that form. The most important is that, per their new SOP 50 10 7.1, the form is not required, but on SBA’s website it states Lenders may continue using it. Note that the 1050 states that it is required – one of the points of confusion.
A further question popped up for us when we saw twelve references in the Form 1050 to the Authorization – but the Authorization is obsolete.
We have raised these questions with SBA, and are waiting to hear back from them as to whether they plan to update the form, replace it, or scrap it altogether. We’ll let you know when we’ve heard from them.
As a further note, there are two important times when you should review and update your policies and procedures. One is right now, the beginning of a New Year (and happy New Year to you!). The other is when SBA issues updates, which will almost always cause updates to how you process your loans.
As always, we’re here to help. When there are discrepancies and questions such as we’ve outlined here, it can be easy for you and your team to feel confused about exactly what SBA expects. That’s where, with our many years of SBA Lending experience, we can help. Give us a call at 877 576 0819 or connect through our website on the Schedule a Consultation form.