{"id":3684,"date":"2023-05-02T14:18:07","date_gmt":"2023-05-02T14:18:07","guid":{"rendered":"https:\/\/listselfstorage.com\/us\/industry-insights\/?p=3684"},"modified":"2023-05-02T15:43:21","modified_gmt":"2023-05-02T15:43:21","slug":"anticipated-changes-to-the-sba-rulebook","status":"publish","type":"post","link":"https:\/\/listselfstorage.com\/us\/industry-insights\/anticipated-changes-to-the-sba-rulebook\/","title":{"rendered":"Anticipated Changes to the SBA Rulebook"},"content":{"rendered":"<p><!-- VideographyWP Plugin Message: Automatic video embedding prevented by plugin options. --><br \/>\n<span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">On April 11th, 2023, the Small Business Administration (SBA) released their final rule, which includes eligibility and procedural changes that make SBA 504 financing even more obtainable. The SBA aims to make the SBA 504 loan available to more small businesses by relaxing eligibility criteria, reducing required documentation and implementing an updated credit policy.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">They anticipate the changes to go into effect, May 12, 2023. Changes are subject to SBA\u2019s release of guidance and procedural notices.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><u><b>Highlights of changes<\/b><\/u><\/span><\/span><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">:<\/span><\/span><\/span><\/p>\n<ul>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">No more Franchise Directory<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Simplified Affiliation Rules<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Affiliation is now generally defined as 50% ownership in another entity with a similar<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">NAICS code prefix, thus greatly reducing affiliation by ownership scenarios.<\/span><\/span><\/span><\/p>\n<ul>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><i>Affiliation via Management <\/i><\/span><\/span><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">\u2013 the decision to hire a management company is now the sole responsibility of the independent business owner(s).<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><i>Affiliation via Identity of Interest<\/i><\/span><\/span><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"> \u2013 SBA is removing this rule as it was deemed unfair to require close relatives (other than spouses and adult children) to provide financial statements when they aren\u2019t principals of the Applicant.<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Reduced factors for determining creditworthiness and reasonable assurance of repayment from nine to three requirements:<\/span><\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Credit score or history of the applicant, its associates, and guarantors<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Earnings or cash flow of the applicant<\/span><\/span><\/span><\/li>\n<li><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Equity or collateral of the applicant, as applicable<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><u><b>C<\/b><\/u><\/span><\/span><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><u><b>ontact<\/b><\/u><\/span><\/span><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">:<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Nick Collins<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Commercial Lender \u2013 Vice President<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">Bank Five Nine<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">155 W. Wisconsin Avenue, Oconomowoc, WI 53066<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">p: (262) 560-2016<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">c: (262) 468-6169<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\">f: (262) 804-9926<br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><a href=\"mailto:nick.collins@bankfivenine.com\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">nick.collins@bankfivenine.com<\/span><\/a><br \/>\n<\/span><\/span><\/span><span style=\"font-size: medium;\"><span style=\"color: #222222;\"><span style=\"font-family: Lato, Helvetica Neue, Arial, Helvetica, sans-serif;\"><a href=\"https:\/\/bankfivenine.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">https:\/\/bankfivenine.com<\/span><\/a> <\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 11th, 2023, the Small Business Administration (SBA) released their final rule, which includes eligibility and procedural changes that make SBA 504 financing even more obtainable. The SBA aims to make the SBA 504 loan available to more small businesses by relaxing eligibility criteria, reducing required documentation and implementing an updated credit policy. They anticipate the changes to go into effect, May 12, 2023. Changes are subject to SBA\u2019s release of guidance and procedural notices. Highlights of changes: No more Franchise Directory Simplified Affiliation Rules Affiliation is now generally&hellip;<\/p>\n","protected":false},"author":13,"featured_media":3171,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,21],"tags":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3684"}],"collection":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/comments?post=3684"}],"version-history":[{"count":5,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3684\/revisions"}],"predecessor-version":[{"id":3690,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3684\/revisions\/3690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media\/3171"}],"wp:attachment":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media?parent=3684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/categories?post=3684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/tags?post=3684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}