SBA to Streamline Processing for 504 Loans

SBA is in the final stages of streamlining the 504 application process. The first step will be to reduce the size of the Application for 504 Loans.

SBA Form 1244 (the 504 loan application) will expire in the near future. The plan, for the short term – and to keep the form from expiring - is to approve the current Form 1244 again. However, for the long term and to help streamline the application process, there will be significant changes to reduce the size of the form and to eliminate unnecessary requirements.

NADCO, the 504 industry group, has been working with the SBA Office of Financial Assistance (OFA) on this and has already made its recommendations. The significantly revised Form 1244 is being reviewed at SBA now. No publication date has been set, but every effort is being made to expedite the process.

In addition, the Sacramento Loan Processing Center (the Center) has been given the authority by OFA to hire additional loan officers. This will give the Center more flexibility and allow them to spread the workload over a larger number of loan officers, thereby reducing the time it takes to process a loan.

Finally, the Center is looking at a rating system for CDCs that will affect which documents the individual CDC has to submit to process its applications. For instance, ALP CDCs could be allowed to submit a smaller application package.

All of these efforts, when completed and placed in operation, will make the overall application process less cumbersome, enhance coordination between the CDCs and the Center, and allow the loans to be completed in a more efficient manner.

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