SOP 50 10 5(D) - Credit Alert Verification Reporting System (CAIVRS)

SOP 50 10 5(D), which became effective October 1, 2011, added the following procedure for delegated 7(a) lenders to follow: “Delegated lenders are responsible for checking the Credit Alert Verification Reporting System (CAIVRS) to determine if any of the individuals or businesses identified in paragraph (4) immediately above has either a Delinquent Federal Debt or a Prior Loss which would result in the Small Business Applicant being ineligible for SBA financial assistance.

(a) CAIVRS allows the lender to enter multiple tax id numbers (either SSN or EIN) to search for an outstanding Delinquent Federal Debt or Prior Loss in connection with a loan application.

(b) Lenders may obtain instructions for accessing CAIVRS at http://www.hud.gov/offices/hsg/sfh/sys/caivrs/caivrs_faq.cfm.” (Subpart B, Chapter 2, Paragraph III.D.3.q)(5).) The same procedures were added for PCLP-CDCs. (Subpart C, Chapter 2, Paragraph III.D.3.q)(5))

SBA Procedural Notice 5000-1227 (effective date 11-21-2011) established December 31, 2011 as the deadline for lenders and PCLP-CDCs to meet the SOP requirements to use CAIVRS for 7(a) and 504 loans processed under delegated authority. That notice also provided detailed instructions for lenders and PCLP-CDCs to register to use CAIVRS.

The registration process has proven to be more difficult than originally anticipated and most lenders and PCLP-CDCs have been unable to successfully register through no fault of their own. Thus, SBA is extending the deadline for lenders and CDCs to register for and use CAIVRS for 7(a) and 504 loans processed under delegated authority until September 30, 2012. This will give SBA the necessary time to work with the Department of Housing and Urban Development (HUD) to facilitate the registration process for our delegated lenders and PCLP-CDCs.

Questions

Questions regarding this notice should be directed to the lender relations specialist in the local SBA field office. The local SBA field office may be found at www.sba.gov/about-offices-list/2.

_________________________

Jeanne Hulit

Associate Administrator

for the Office of Capital Access