From Berks-Mont SourcesThe federal Small Business Administration is working to make it simpler for lenders to do business with the government. Earlier this year, the administration modernized its Standard Operating Procedure for both lenders and development company loan programs, a release from the federal agency said. According to the release, the administration, which is responsible for promoting small business across the nation, cut some 600 pages out of its original regulations for lenders reducing the size of its revised documentation governing federal business loan programs from 1000 pages to just 400. "Rewriting the SOP doesn't sound glamorous, but it is one of the most important tasks we have undertaken to improve our relationship with lenders and enhance delivery of our loan products," said SBA administrator Steve Preston in a prepared statement provided on the administration's website. "The previous SOP was long, complicated and out dated and lenders cited it as a major impediment to working with the SBA," Preston added.
Called SOP 50 10, the new version of the administration's Standard Operating Procedure will also be available in PDF format on the agency's website and will be much easier to update.
A second version of the operating Procedure with "enhanced search capabilities" is also in development for the federal website, a release March 19 said.
The revised document was created with input from lenders, certified development companies and members of the SBA. The administration said it also sought public input on the revisions establishing an "electronic mailbox" to allow interested individuals to submit comments and claims it received hundreds of e-mailed responses.
Other organizations consulted in the revision process included the National Association of Government Guaranteed Lenders and the National Association of Development Companies.
Despite considerable structural changes to simplify and shorten the document, federal officials say little substantial in policy or clarifications have been changed.
Still feds say they will continue to work with lenders and their representatives to implement ongoing policy improvements. "We hope the new document will make it easier for lenders to understand our programs and use our product," Preston said. According to the administration's website, the new revised Standard Operating Procedure is divided into three sections. They include criteria for lender and certified development company participation, and a business loan program and certified development company program. Those interested in learning more about the federal Small Business Administration's programs for small business may call the 1-800-U ASK SBA or (704) 344-6640 or visit the administration's website at www.sba.gov.