2. U.S. Small Business Administration Office of Capital Access
504 Connect Call
December 4 , 2018

3. Office of Capital Access
Bill Manger – Welcome and OCA Updates Bill Briggs – Marketing Steve Kucharski - OPSM Director Dianna Seaborn – OFA Director Linda Reilly – 504 Program Chief Jihoon Kim – OFPO Director Hien Nguyen – SLPC Director Susan Streich – OCRM Director Paul Kirwin – 504 Team Lead

4. Office of Capital Access
Bill Manger
Associate Administrator

5. 504 Loan Activity 504 Lending Activity 504 Franchise Lending Activity
Time Period Comparison (activity through 10/31 of each FY)

6. Top Ten Lenders CDC Small Business Finance Corporation, CA
Thank you!
Top Ten Lenders
CDC Small Business Finance Corporation, CA
Loans Made: 265
Mortgage Capital Development Corporation, CA
232
Empire State Certified Development Corporation, NY
213
Florida First Capital Finance Corporation, Inc., FL
214
Florida Business Development Corporation, FL
203
Mountain West Small Business Finance, MT
192
Business Finance Group, VA
121
California Statewide Certified Development Corporation, CA
133
Small Business Growth Corporation, IL
171
WBD, Inc., WI
144

7. Office of Capital Access

8. Office of Capital Access
Bill Briggs Senior Advisor

9. New Marketing Materials

10. New Marketing Materials

11. New Marketing Materials

12. Contact your District Office
Decals Now Available!
Free Training
Eligibility
SOP Interpretations
912’s &1081’s Direction
Servicing Modifications
Local Resource Partners
Status Checks
Screen Outs
Insurance Requirements
OIG Referrals
Starting the Liquidation Process
Secondary Market info
And so much more… Click here to find your District Office

13. Office of Performance and Systems Management
Steve Kucharski
Director

14. Office of Financial Assistance
Dianna Seaborn
Director

15. 504 Program News
Hot Topics
SBA submitted comments to FDIC/OCC/Fed Reserve board on HVCRE ADC – deadline was November 27, 2018
Comments are due on the Express Rule which also includes topics that impact 504 – affiliation and personal resource test – comments due to SBA by Dec 18, 2018
SOP (K) to be released in December 2018 with effective date of February 1, 2019
Job Creation/Retention Federal Register update issued November 2, 2018; comments were due by December 3, 2018

16. 504 Loan Program
Linda Reilly
Chief

17. Updated Job Opportunity Requirements:
504 Program News
Hot Topics
Updated Job Opportunity Requirements:
504 Projects must achieve at least 1 Job Opportunity created or retained per every $75,000 of project debenture ($120,000 for Small Manufacturers) unless one of the 15 community development or public policy goals is met.
CDCs’ portfolios must maintain a Job Opportunity average of one Job Opportunity created or retained for every $75,000 guaranteed ($85,000 for Projects located in Special Geographic Areas).

18. 912 Processing
If an applicant answers positive for previous arrest(s) they must complete and provide the following:
SBA Form Statement of Personal History Expiration date of (upper right hand corner)
FD-258 Must be signed and completed in full with black ink (only original needed)
A detailed explanation, signed and dated by the Subject Individual, including all previous charges, dates, city or counties of occurrence, level of final convictions (misdemeanor or felony) and all sentencing requirements
Court must provide letter indicating all fees, and or restitution paid and Probation Dept. must provide documentation probation was completed (and paid) as required.
If subject individual is still on probation or conditional discharge, Applicant is not eligible

19. CDC Misdemeanor Reviews
912 Processing
CDC Misdemeanor Reviews
CDC will review the complete 912 package and if all final convictions were misdemeanors (no charges or probation ending in last 6 months or charges with crimes against children). Do Not Submit to SBA. The CDC retains the supporting information and court documentation, including the original complete SBA Form 912 Package in the file and may process the application with no review of the SBA Form 912 by SBA. SBA will not review.
If sentencing and other conditions of the court have not been satisfied, Applicant is not eligible

20. Court Documentation
If sentencing and other conditions of the court have not been satisfied, then the Applicant is not eligible… SOP (J)
A letter from the county indicating there are no outstanding fines, fees or restitution due is acceptable.
A letter from the probation department indicating subject individual is no longer on probation is acceptable.
The court documentation requirement cannot be self-certified, stated by attorney or provided by Lexus Nexis.
Evidence from the court and probation dept. must be submitted with package in order to be processed.

21. Office of Financial Program Operations
Jihoon Kim
Director

22. Sacramento Loan Processing Center
Hien Nguyen
Director

23. SLPC
Hot Topics
New hotel Construction - Loan Authorization appraisal requirement:
Should be for a valuation that is at least equal to the total project cost; and
Upon completion appraised value should include the real estate and all FF&E
Property taxes:
Are an eligible project cost when purchasing the property but not for maintaining the property. After loan approval, property taxes are an ongoing expense.
Cannot be included in the interim loan once the property has been purchased. After interim loan approval, property taxes are an ongoing expense.

24. Office of Credit Risk Management
Susan Streich, Director
Paul Kirwin, 504 Team Lead

25. OCRM OPERATIONAL REVIEW REPORT
Report template streamlined and reduced to 1 page in January of District Offices should submit their Operational Review Reports to OCRM at within 60 days of receipt of the CDC’s Annual Report.
JOBS TESTING
OCRM will begin the testing of CDC-reported jobs created and/or retained numbers in January of OCRM will send information requests directly to the CDCs, but will copy the local district office on requests. We test 5 loans annually as part of the jobs testing process.
LENDER PORTAL
OCRM updated the Lender Portal, effective 3rd QTR FY 2018, so that it now includes all of the CDC’s SMART metrics along with other detailed reports on the CDC’s 504 loan portfolio.

26. 2019 504 Connect Calls Save the Dates! All calls start at 3:00 Eastern
March 5, 2019
June 4, 2019
September 10, 2019
December 10, 2019
Need an invitation?
Ginger Allen at
2019
504
Connect Calls

27. March 5th 504 Connect Call 3:00pm EST Save the Date!
Step 1: Dial into the conference 10 minutes prior.
Dial-in:
Access Code: ##
Step 2: Join the conference on your computer.
Entry Link:
Copy and paste this link into your web browser
March 5th
504
Connect Call
3:00pm EST

28. January 8th 7(a) Connect Call 3:00pm EST Save the Date!
Need an invitation?
LaShun Johnson at

29. Who has the first question????