SBA SOP 50 10 8, C.Ch2.B — MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS
Verbatim text of SBA SOP 50 10 8 section C.Ch2.B (MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS), effective 2025-06-01. 3 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 SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.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, C.Ch2.B — MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS — 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 C.Ch2.B
B. MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS 1. The CDC must request in writing SBA’s approval of modifications to the terms and conditions of the 504 loan at any time after approval but before funding: For an increase or decrease in the amount of an approved loan, the 327 action must clearly support the need for the change in the amount and address the effects on repayment ability, collateral and jobs created or retained. The 327 action must also provide the revised breakdown of the private sector lender, debenture, and Applicant’s injection, including a revised use of funds. Any adjustments to or changes in ownership of the Borrower, including percentage of ownership. CDCs may not unilaterally approve such adjustments or changes. 2. CDCs may use their unilateral authority to submit the following 327 actions using the 504 E-Tran system: 504 Loan Cancellation (prior to closing); Borrower, EPC or OC mailing address. Note: CDCs must not exercise unilateral authority to change the address of the Project Property; Borrower, EPC or OC phone numbers and email addresses; and Principal or guarantor mailing address, phone number, and email address. 3. For loans approved under ALP Express delegated authority, ALP CDCs are authorized to perform the servicing actions listed below. The ALP CDC is responsible for making these loan modifications (also known as 327 Actions) in E-Tran for ALP Express Loans: a. An ALP CDC may correct an error in the street address of a property pledged as collateral for the ALP Express Loan. The ALP CDC may not change the location of the Project Property using ALP Express delegated authority. b. An ALP CDC may change a Third Party Lender or Interim Lender for an ALP Express Loan provided that the lender is a financial institution that is regulated by the Federal Financial Institution Regulators (i.e., the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration) or by a state financial institution regulator with supervisory and examination authority satisfactory to SBA. c. An ALP CDC may add inadvertently omitted co-Borrowers (without changing the ownership) and guarantors for ALP Express Loans. d. An ALP CDC may reduce the amount of standby debt for ALP Express loans before 504 loan closing. An ALP CDC may make de minimis increases to Use of Proceeds amounts on an ALP Express Loan provided the Total Project Costs do not increase. A de minimis increase is one in which the increase to all Use of Proceeds categories does not exceed 10% of the total project cost. ALP CDCs may reduce the project size under ALP Express delegated authority with no limitations. However, if these changes necessitate modification or deletion of collateral that was originally approved, the entire action must be submitted to SLPC for prior review and approval. 4. For loans approved under PCLP authority: Generally, PCLP CDCs may modify and extend the E-Tran Terms and Conditions using their unilateral authority. PCLP CDCs must upload the final modified executed terms and conditions to E-Tran within 15 business days after debenture funding. PCLP CDCs must obtain prior written consent from the SLPC for any adjustments to or changes in ownership of the Borrower, including percentage of ownership, after loan approval. The SLPC will approve the proposed modification and enter it into E-Tran after:
SOP 50 10 8 C.Ch2.B.i
i. Verification that the proposed changes to the ownership of the Borrower comply with limitations on the aggregate amount of SBA portions of all loans to a Borrower, including affiliates; and
SOP 50 10 8 C.Ch2.B.i.ii
ii. Verification that there has been no prior loss to the Government caused by the new owner(s) or any business owned, operated, or controlled by the new owner(s). PCLP CDCs must obtain approval for increases or decreases in the loan amount directly in E-Tran. Approval of the requested increase or decrease in E-Tran will constitute SBA’s prior written consent. 5. Post-approval modifications (327 actions) must be submitted to the SLPC through the 504 E-Tran system. Detailed guidance on the 504 E-Tran submission process is available on the SBA website in the 504 E-Tran User Guide for Submitting Loan Applications. 6. Neither the amount nor the maturity of a loan can be modified after the debenture closing has been completed. C. CLOSING, DISBURSEMENT, AND POST-CLOSING
Operationalizing SBA SOP 50 10 8, C.Ch2.B — MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS
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To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch2-b/
· register sba-sop-c-ch2-b · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.