{"id":2448,"date":"2023-05-02T16:06:11","date_gmt":"2023-05-02T16:06:11","guid":{"rendered":"http:\/\/rvparkiq.com\/industry-insights\/?p=2448"},"modified":"2023-05-02T16:06:11","modified_gmt":"2023-05-02T16:06:11","slug":"anticipated-changes-to-the-sba-rulebook","status":"publish","type":"post","link":"https:\/\/rvparkiq.com\/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. --><\/p>\n<div class=\"entry-content\">\n<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.<\/p>\n<p>They anticipate the changes to go into effect, May 12, 2023. Changes are subject to SBA\u2019s release of guidance and procedural notices.<\/p>\n<p><u><b>Highlights of changes<\/b><\/u>:<\/p>\n<ul>\n<li>No more Franchise Directory<\/li>\n<li>Simplified Affiliation Rules<\/li>\n<li>Affiliation is now generally defined as 50% ownership in another entity with a similar<\/li>\n<\/ul>\n<p>NAICS code prefix, thus greatly reducing affiliation by ownership scenarios.<\/p>\n<ul>\n<li><i>Affiliation via Management <\/i>\u2013 the decision to hire a management company is now the sole responsibility of the independent business owner(s).<\/li>\n<li><i>Affiliation via Identity of Interest<\/i> \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.<\/li>\n<li>Reduced factors for determining creditworthiness and reasonable assurance of repayment from nine to three requirements:\n<ul>\n<li>Credit score or history of the applicant, its associates, and guarantors<\/li>\n<li>Earnings or cash flow of the applicant<\/li>\n<li>Equity or collateral of the applicant, as applicable<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Contact:<\/strong><\/p>\n<p>Nick Collins<br \/>\nCommercial Lender \u2013 Vice President<br \/>\nBank Five Nine<br \/>\n155 W. Wisconsin Avenue, Oconomowoc, WI 53066<br \/>\np: (262) 560-2016<br \/>\nc: (262) 468-6169<br \/>\nf: (262) 804-9926<br \/>\n<a href=\"mailto:nick.collins@bankfivenine.com\" target=\"_blank\" rel=\"noopener noreferrer\">nick.collins@bankfivenine.com<\/a><br \/>\n<a href=\"https:\/\/bankfivenine.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/bankfivenine.com<\/a><\/p>\n<\/div>\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":7,"featured_media":2449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[32,31],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/posts\/2448"}],"collection":[{"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/comments?post=2448"}],"version-history":[{"count":1,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/posts\/2448\/revisions"}],"predecessor-version":[{"id":2450,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/posts\/2448\/revisions\/2450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/media\/2449"}],"wp:attachment":[{"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/media?parent=2448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/categories?post=2448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvparkiq.com\/industry-insights\/wp-json\/wp\/v2\/tags?post=2448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}