Small Business Jobs Act Funding Expiration (7(a) and 504 loans)

The purpose of this Notice is to inform you that the ability to correct an undisbursed balance or reinstate the guaranty on an erroneously canceled loan approved under the Small Business Jobs Act of 2010 (“Small Business Jobs Act”) will expire on September 30, 2016. Small Business Jobs Act loans include 7(a) loans and 504 loans.

Lenders and CDCs should review all Small Business Jobs Act loans in their portfolios and SBA Form1502 error reports to verify whether any loans require balance corrections or reinstatement of the guaranty. Loan balance corrections or reinstatement of the guaranty on erroneously canceled loans will only occur if the requirements for such correction or reinstatement as set forth in the applicable Standard Operating Procedure (SOP) are met. Any requests for corrections to the balance of existing loans or reinstatement of the guaranty on erroneously canceled loans must be submitted using the procedures set forth in the applicable SOP no later than August 30, 2016, to ensure sufficient time for processing before the fiscal year ends.

There will be no balance corrections or reinstatement of the guaranty on any Small Business Jobs Act loan after the fiscal year ends on September 30, 2016.

SBA Field Offices must advise lenders and CDCs of this Notice and provide guidance on resolving any SBA Form 1502 error report discrepancies. Questions concerning this Notice should be directed to the lender relations specialist in the local SBA field office. The list of local SBA field offices may be found at www.sba.gov/localresources.

Ann Marie Mehlum

Associate Administrator, Office of Capital Access