What does it mean when your SBA loan number is issued?
Short answer
It means the guaranty has been authorized in SBA's system on the stated terms. It is not funding. SBA's guaranty still depends on those terms and the lender's compliance, and closing conditions remain. Source: SOP 50 10 8.1, Sec. B, Ch. 6, Para. A.
It means the guaranty has been authorized in SBA's system on the stated terms. It is not a disbursement. SOP 50 10 8.1, Sec. B, Ch. 6, Para. A (p. 202) says SBA's guaranty remains subject to those terms and the lender's compliance.
How the number issues
- Delegated loans. The lender submits the request with the SBA Terms and Conditions, and the number issues in the SBA Loan System (Para. A.1).
- Non-delegated loans. SBA reviews the application and issues the number if it approves the loan (Para. A.2).
Rules tied to that date
- Any existing 7(a) or 504 loan of the applicant must be current when the new number issues (Sec. A, Ch. 1, Para. E, about p. 27).
- The ownership look-back runs 6 months before the SBA loan number is issued (Sec. A, Ch. 1, Para. F, p. 28).
- An Ineligible Person must completely divest before the number issues, or the business is ineligible (Para. F).
What can happen after it issues
- The lender or an affiliate may make interim advances before disbursement. Loan proceeds can repay them (Appendix 14, Para. A, Interim Advances).
- The lender owes the Upfront Fee on a set schedule. If it goes unpaid, SBA will cancel the guaranty (Sec. A, Ch. 4, Para. C.1.a).
What still has to happen
The lender must obtain all collateralProperty a lender can take and sell if a loan is not repaid. and meet all other conditions before or at disbursement (Sec. B, Ch. 6, Para. D.5). Terms change only through the post-approval process (Para. B). A loan number does not mean your loan will close.
Sources
- SOP 50 10 8.1, Sec. B, Ch. 6, Paras. A, B and D.5 (pp. 202, 205; D begins p. 207)
- SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, existing SBA loans (about p. 27)
- SOP 50 10 8.1, Sec. A, Ch. 1, Para. F (p. 28)
- SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1.a (p. 62)
- SOP 50 10 8.1, Appendix 14, Para. A, Interim Advances (about p. 357)
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