7(a) and 504 loans to Cooperatives and valuation requirements for 7(a) loans to ESOPs for changes of ownership

The purpose of this notice is to revise SBA procedures to: 

• Allow SBA Lenders to process loans to a cooperative or an eligible small business owned or controlled by a cooperative under delegated authority. Upon the effective date of this notice, SBA Lenders may use their delegated authority to make loans to Cooperatives and eligible small businesses owned or controlled by a cooperative. 
• 7(a) Loans only - Remove the requirement for an independent business valuation for 7(a) loans involving ESOPs for the types of loans discussed in SOP 50 10 7.1, Section A, Chapter 2, Paragraph B.2.