On July 29, 2022 the Small Business Administration (SBA) released SBA Procedural Notice 5000-835230, revising procedures relating to commercial real estate appraisals that CDCs must submit to the Sacramento Loan Processing Center (SPLC) for approval.
Under current SBA procedures, if the appraisal that CDCs must submit for approval to the SLPC is less than 95% of the estimated value of the commercial real estate, the debenture (the 25-year fixed rate loan) must be reduced or the CDC must secure additional collateral or additional investment from the borrower and/or guarantors. SBA revised SOP 50 10 6, to change the requirement from 95% to 90% of the estimated value of the commercial real estate.
Nick Collins
Commercial Lender – Vice President
Bank Five Nine
155 W. Wisconsin Avenue | Oconomowoc, WI 53066
p: (262) 560-2016 c: (262) 468-6169 f: (262) 804-9926
nick.collins@bankfivenine.com
