Good Morning all,

It was brought to my attention by our SBA lenders that we are now required to collect beneficial ownership at a 20% level on these loans? This was not in the previous versions.

See: https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs

Was anyone else aware of this? How is your bank handling it? Creating a new form for your SBA lending teams to use? Since bank regs only require 25%, just letting them come up with their own ownership collection method for SBA while keeping our own?

You have always had to identity any owners that control at least 20%, as they must guarantee the loan, so I am confused as to what the big change might be, other than performing an eligibility test?

a. The SBA Lender must:
i. Identify the Beneficial Owners of 20% or more of the Applicant and the 401(k) plan, including but not limited to, the Trust, corporations, individuals, etc.;


This was not in any previous version of the SOP.

I agree, that my understanding is that lenders always had to obtain a personal guaranty from any owners over 20%, but this requirement seems different in that the Lender must now report "beneficial owners" to the SBA in the system. Am I just reading too much into this from a BSA/AML perspective and reading our rules into a separate SBA requirement that the lenders need to be collecting for their purposes?

Well, if your SBA lenders where not identifying the 20% owners in some fashion to make sure who was actually signing the guarantees and that they were the right people, then I think you have some problems. The only difference now is that they need to report that information to the SBA, so in my mind, there should not be much of a change, other than an operational one.

Thank you much. Good enough for me to stay out of their process.