When the SBAExpress program was introduced in 2000, it was a pilot program and had its own program guide. Late 2004 the program was established as a permanent program. The rules of the program have since been incorporated into the SOP 50 10. Lenders should avoid referring back to the original Program Guide as some of the rules may have changed.
Some lenders think of this program as a simple way to get an SBA guaranty without all the hassle. While this is somewhat true, lenders need to realize they are not conventional loans and specific forms and guidelines still need to be followed. SBAExpress loans can be submitted using E-Tran, SBA’s online application. Although this application process eliminates the paperwork for SBA, it does not eliminate the requirement for the lender to have signed and in their file the required forms. These forms include Nos. 1919, 1920 Parts A B & C or Form 2238. Lenders must prepare the SBAExpress Loan Authorization themselves, this is not generated by SBA upon loan approval. All these forms can be found on the SBA Lender website.
If you don’t want to handle the processing of the forms yourself give us a call.
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