SBA SOP 50 10 8, B.Ch3.i.5 — Submission of Application for Guaranty for International Trade
Verbatim text of SBA SOP 50 10 8 section B.Ch3.i.5 (Submission of Application for Guaranty for International Trade), effective 2025-06-01. 9 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, B.Ch3.i.5 — Submission of Application for Guaranty for International Trade — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 B.Ch3.i.5
5. Submission of Application for Guaranty for International Trade Lenders that do not have delegated PLP authority: Must submit applications to SBA via E-Tran for SBA approval under non-delegated procedures. Lenders with delegated PLP authority: • May only submit applications to SBA via E-Tran for approval under non- delegated procedures when the loan will refinance the Lender’s same institution debt or if the collateral securing the loan will not be in first lien position. • Except for the above, must process all loan applications using their delegated authority. • May submit questions on a specific loan application, including the names of the principals and the address of the project, to [email protected]. Provide enough information on the specific application to avoid delays in responses. Lender is to provide a summary of the facts – SBA will not be reviewing the entire case file or multiple attachments. • Must make a request for an exception for any type of 7(a) loan to [email protected], providing detailed information about the application including the names of the principals, address of the project, and a discussion of the policy for which the exception is being requested along with an explanation why the exception to policy should be granted. If SBA approves the exception, the Lender will receive an email confirming the approval, and the Lender must proceed to process the application under delegated authority. The Lender must retain the approval email in the loan file. Exceptions to policy will be considered on a case-by-case basis, and the decision will only apply to the specific request. The decision must be documented in the appropriate loan file. Lender is to provide a summary of the facts – SBA will not be reviewing the entire case file or multiple attachments. • The [email protected] email account is only for Lenders with delegated authority that have questions about a specific loan application and is not to be used for general policy questions, which should be sent to [email protected].
SOP 50 10 8 B.Ch3.i.5.a
a. Contents of Lender’s Application for Guaranty The contents of the Lender’s application for guaranty vary depending on the method of processing chosen by the Lender, but in all cases must maintain those documents and any that support the guaranty request in their loan files. Lender must list in E-Tran at least 81% of the total direct and indirect ownership of the Applicant. The ownership percentage of married spouses and minor children must be combined. SBA Form 1919 includes information on the number of existing employees at the time of application and the number of jobs to be created and/or retained as a result of the loan. • Number of existing employees at the time of application is calculated in accordance with 13 CFR § 121.106, which states in part that SBA counts all individuals employed on a full-time, part-time, or other basis (i.e., jobs are not converted to full-time equivalents). • Jobs “created” means the number of full-time (or equivalent) employees that the small business expects to hire as a result of the loan. • Jobs “retained” means the number of full-time (or equivalent) employees on the payroll of the business at the time of application that will be lost if the loan is not approved. • “Employees” does not include contractors reported via IRS Form 1099. i. IT Non-Delegated and PLP Processing: a) Program forms can be found at www.sba.gov/document. b) Centralized 7(a) Loan Submission Instructions can be found at the 7(a) Loan Guaranty Processing Center (“LGPC”) website along with other forms, telephone numbers and fax numbers: www.sba.gov/CitrusHeightsLGPC. c) All IT loan files must include the forms and information the Lender requires in order to make an informed credit decision. Any application form obtained by the Lender from the applicant must be certified by the Applicant as true and complete.
SOP 50 10 8 B.Ch3.i.5.a.ii
ii. PLP Lenders processing IT loans under their PLP authority must obtain and retain the documentation listed below in their file. Additionally, Lenders must submit the information required in SBA Form 1919 and the loan terms and conditions into E-Tran. iii. For all IT loans submitted using the non-delegated process through the LGPC, the Lender must submit applications for guaranty and all attachments via E-Tran to SBA. SBA will make the final determination as to the eligibility and creditworthiness of the Applicant, including approving the uses of proceeds, the adequacy of the collateral being pledged, the structure of the loan and any equity injection to be required from the Applicant and will either approve or decline the loan in E-Tran. Lender must obtain and retain in its file all documentation listed below. In addition, Lender must submit as part of the Application for guaranty those items below emphasized in bold. a) Lender must submit to E-Tran all terms and conditions the E-Tran data fields require. b) SBA Form 1919: A separate SBA Form 1919 for each Co-Borrower must be completed and signed by the authorized representative of the Applicant and submitted to the Lender. The aggregate amounts of the “Purpose of the loan” sections across all SBA Forms 1919 should equal the total amount of the loan request. Only the information required on SBA Form 1919, and not the form itself, must be submitted into E-Tran, although the Lender must obtain and retain the signed form in its file. c) Lender’s Credit Memorandum must address all requirements detailed in Paragraph 4, Credit Standards above. d) Owner Financial Statement (business or personal, as appropriate) dated within 120 days of submission to SBA, for all owners of 20% or more (including the assets of the owner’s spouse and minor children), and proposed guarantors, except Supplemental Guarantors. Lenders may use SBA Form 413 or their own equivalent form. e) Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax Transcript/Verification of Financial Information and either business financial statements or tax returns for the last 3 years and interim financial statements for the Applicant and any affiliates. For start- ups, new businesses, changes of ownership, and other applications based on projections, include detailed projections, including the supporting assumptions that reflect a debt service coverage equal to or greater than 1.15 within 2 years from loan funding or, for construction projects, within 2 years from the end of construction. f) Interim financial statements must be dated within 120 days prior to submission to SBA. The following information must be provided:
SOP 50 10 8 B.Ch3.i.5.a.i
i) Year End Balance Sheet for the last 3 years, including detailed debt schedule; ii) Year End Profit & Loss Statements for the last 3 years; iii) Interim Balance Sheet, including a detailed debt schedule, and interim Profit & Loss Statements. g) Copy of Lease, if applicable; h) Detailed listing of machinery and equipment to be purchased with loan proceeds and cost quotes, if applicable; i) A detailed listing of all assets purchased with loan proceeds; j) A detailed listing of all collateral; k) Provide the following if real estate is to be purchased with loan proceeds:
SOP 50 10 8 B.Ch3.i.5.a.i
i) Appraisal (see Paragraph 4.d, Real Estate Appraisal and Business Valuation Requirements above); ii) Copy of signed purchase agreement; iii) Lender’s environmental questionnaire (if applicable–- see Section A, Ch. 5, Para. E, Environmental Policies and Procedures). l) Provide the following if purchasing an existing business with loan proceeds: i) Copy of buy-sell agreement; ii) Copy of business valuation that meets the requirements of Paragraph 4.d., Real Estate Appraisal and Business Valuation Requirements, above; iii) Pro forma balance sheet for the business being purchased as of the date of transfer; iv) Copy of seller’s financial statements for the last 3 complete fiscal years or for the number of years in business if less than 3 years; and
SOP 50 10 8 B.Ch3.i.5.a.v
v) Seller’s interim financial statements no older than 120 days from the date of submission to SBA. If the seller’s financial statements are not available, the seller must provide an alternate source of verifying revenues and the Lender must discuss in its credit analysis: (a) Why financial statements are not available; and (b) How the Lender verified business revenue. vi) Franchise: For any Applicant operating under a franchise, license or similar agreement, refer to Section A, Ch. 1, Para. G., “Franchises”. vii) Debt Refinancing. Lenders must maintain copies of all notes being refinanced, security agreements, leases, transcripts for the most recent 12 months (to prove debt being refinanced is current) or other documentation evidencing the debt to be refinanced in the loan file. For non-delegated loans, Lender must submit copies of all these documents for the debt to be refinanced to the LGPC with the application. viii) Management agreements, if applicable, and if the management agreement is not part of the franchise disclosure documents for a brand listed on the Franchise Directory. See Section A, Ch. 1, Para. E.3.e. on management agreements. ix) Documentation of U.S. National and/or LPR/USCIS status verification in accordance with Section A, Ch. 1, Para. F, “Businesses Owned by Non-U.S. Citizens”. Business– Lenders must receive verification of the status of each alien required to submit USCIS documents prior to submission of the application or request for loan number to SBA. Lender may submit a copy of the verification received from USCIS or SBA-SLPC or confirm in its credit memorandum that verification has been obtained. Lender must retain documentation proving a U.S. National’s status (birth certificate and/or passport) in the loan file. b. Where to Submit Applications for Guaranty
SOP 50 10 8 B.Ch3.i.5.i
i. Non-delegated applications–- For all loans submitted using the non-delegated process through the LGPC, the Lender must submit applications for guaranty and all attachments via E-Tran to the LGPC. LGPC will review the loan, including required contents of the application. LGPC will make the determination as to the eligibility and creditworthiness of the Applicant and will either approve or decline the loan in E-Tran. The Lender must obtain and retain in its file all documentation listed below. Documents greater than 250MB must be separated into multiple documents. The system does not support uploads greater than 250MB.
SOP 50 10 8 B.Ch3.i.5.i.ii
ii. PLP applications – Lenders submitting applications using their PLP authority must submit guaranty applications via E-Tran, retaining all required documentation in the Lender’s loan file.
SOP 50 10 8 B.Ch3.i.5.i.iii
iii. Reconsideration of declined non-delegated IT applications (13 CFR § 120.193): a) If the Lender believes the reason(s) for decline have been overcome, a request for reconsideration may be submitted along with a detailed written explanation of how the Applicant has overcome the reason(s) for decline. Lender must submit a request for reconsideration to the LGPC within 6 months of the date of decline. Any request submitted more than 120 days after the date of decline must include current financial statements. b) If a request for reconsideration is declined by the LGPC, a second reconsideration may be requested from the D/FA or designee, whose decision is final. The request to the D/FA or designee must be submitted to the LGPC and must include a copy of the Center’s decline letter and include additional information that specifically addresses the reason(s) identified for decline and how the Applicant has overcome those reason(s). The LGPC will forward the request to the D/FA or designee for a final decision. See Chapter 5, E-Tran Terms and Conditions through Disbursement for all 7(a) Loans, in this Section, for SBA requirements for the E-Tran Terms and Conditions, post-approval and pre-disbursement requests for changes, transfer of guaranty between participating Lenders, and loan closing and disbursement. CHAPTER 5: E-TRAN TERMS AND CONDITIONS THROUGH DISBURSEMENT FOR ALL 7(A) LOANS
Operationalizing SBA SOP 50 10 8, B.Ch3.i.5 — Submission of Application for Guaranty for International Trade
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