Do this first!
Selling your SBA loans? It’s a fairly common thing to do.
But a whole ‘nother level of responsibility comes with sales of SBA loans, for you as the Lender, for the investor purchasing your loans, and for your communication with the SBA. Take these additional responsibilities into consideration as you update your policies and procedures.
Let’s review eight key steps:
First, confirm the loan is fully funded. Sounds obvious, right? But you’d be surprised how often this is assumed to be complete when it actually isn’t yet!
Make sure the loan has acceptable computations – either 30/360 or Actual Days/365.
Review the Note and verify that the terms match what’s in the SBA Authorization.
Confirm that the Lender’s Bid format is current.
Likewise, make sure the Lender’s Form 1086 is also current.
Make sure you have procedures in place to track modifications to the loan post-sale.
Report payments of sold loans monthly on your 1502 report.
And that you adhere to the proper approval authorities, as noted in the SOP 50 57, SBA Secondary Market Program & Securitization Guide, and Form 1086.
The Secondary Market purchaser(s) of your loans will undoubtedly have additional requirements, and should provide guidance on their bid, review, and purchase process. This must all be in agreement with SBA’s program guidelines. If for some reason anything is out of alignment, be sure to reach out and discuss the discrepancies to confirm that you – and they – stay within SBA’s requirements.
Questions? Wanting to sell your loans, but haven’t set up these processes yet? We’re here to help. Just book an introductory call – no charge – and we’ll get you started!