NAGGL (National Association of Government Guaranteed Lenders)

Last night we had the honor of celebrating our Future Leading Lenders (FLL) Class of 2023-2024 with a graduation at the 2024 NAGGL Leadership Summit. Congratulation to Joylynn Bennett, Renae Branch, Jordan Hallam, Molly Harder, Brandon Lesoing, Carly Lovenguth, Bee Moua, Mary-Ammielle Nichols, Victor Rojas and Dakota Williams, MBA. #NAGGLFLL #futureleadinglenders #sbalending

7(a) Working Capital Pilot (WCP) Program Guide Now Available U.S. Small Business Administration has made the WCP Program Guide available via this temporary link( https://lnkd.in/gwZh3FHW) , and has indicated that, within the next few days, it will post the guide, together with WCP training, on the Agency’s Training on Demand page (https://lnkd.in/gHYTmqSr). SBA's webpage on the 7(a) WCP (https://lnkd.in/gNXZBxZG) also is live now. WCP loans will be available beginning August 1. Please see NAGGL’s update on July 18, and the Referenced Federal Register notice [89 FR 57353], for complete details about the pilot. And watch for upcoming NAGGL training on this new initiative. #sba7a #sbalending

On July 12, U.S. Small Business Administration officially released revised Form 1919, Borrower Information Form, and posted the final fillable form (dated 04/2024) to the Agency’s website. Concurrent with that action, SBA issued Information Notice 5000-857390, SBA Form 1919 Updated for Criminal Justice Reviews Final Rule (effective July 12, 2024), to announce issuance of the new form. Read more at the link below. #sbalending #sba7a

Federal Register Notice of 7(a) Working Capital Pilot Program ___ Notice of the previously announced U.S. Small Business Administration 7(a) Working Capital Pilot Program (WCP), with a request for comments, was posted in the Federal Register reading room on July 12 (reference 2024-0005). The official document is expected to be published on July 15, and the comment period will close 30 days after the actual date of publication. The three-year WC Pilot will take effect on August 1, 2024, and, unless extended, or made permanent, is scheduled to end on July 31, 2027. Under the pilot, all 7(a) lenders in good standing will be able to provide WCP Lines of Credit (LOCs). But only lenders currently holding PLP-EWCP delegated authority will receive automatic delegated authority for WCP LOCs. Other lenders may apply for delegated authority in accordance with the requirements contained in SOP 50 56 1, Lender Participation Requirements and other WCP-specific guidance. The WCP authorizes lenders to make both asset-based and transaction-based WCP 7(a) lines of credit (LOCs) in amounts up to $5 million, with the lines available to support both domestic and international transactions. The maximum LOC term will be 60 months (5 years), and SBA’s standard maximum guaranties of 85% for loans of $150,000 and 75% for loans of $150,000 and over will apply. The standard regulatory maximum interest rates also will apply; but, in addition to the usual Prime and Optional Peg Rates allowed for other 7(a) loans, under the pilot, SBA also will allow lenders to use the Secured Overnight Financing Rate (SOFR) plus 3 percent as a base rate for WC Pilot LOCs. The upfront fee (guaranty fee) is modeled on SBA’s Export Working Capital Program (EWCP) which “operates as a function of time, charging a proportional amount for each year the facility is in use”. SBA intends to issue a Program Guide to provide more detailed guidance on the WCP. As with all pilot programs, except where specifically amended for this pilot, all regulatory, SOP and other 7(a) Program Requirements will apply.  Please see the Federal Register Notice for complete information about the WCP, including details relating to the regulations that are being waived under this pilot. NAGGL will provide additional information as it becomes available.  

Our Member Challenge for July is ...   Become a part of the conversation when you follow NAGGL's LinkedIn page and comment on any post during the month of July. You could win one of five 40th anniversary merch boxes being given away this month. #40YearsOfNAGGL

NAGGLNow: Equity injections, Liquidation, HELOCs, Piggyback Financing, Forbearance Agreements, and More! ____ In this week's episode of the NAGGLNow Podcast, Angie Rosowski asks Margherita Stutz and Rachel Zippwald more questions from a fish bowl. These are questions submitted through the info@naggl.org mailbox related to equity injections, liquidation, HELOCs, piggyback financing, forbearance agreements, salon suite franchises and more. NAGGL members can watch this full episode at https://lnkd.in/gJ8eZzaN #sbalending #sba7a #nagglnow

JULY RATES Prime Rate = 8.50%  Fixed Interest Rate Base = Prime [+ allowable spreads] SBA LIBOR was officially sunset on 6/30/2023 SBA Optional Peg Rate = 4.63% [July 1, 2024 - September 30, 2024] [SOP 50 10 5, "Base Rates will be rounded to two digits with .004 being rounded down and .005 being rounded up."] #SBALending #SBA7a

🇺🇸 🎆 Happy #IndependenceDay, America! A big shoutout to the nation's more than 33 million small businesses that power our economy, the largest in the world! #4thofJuly

HOW TO GET SBA TO HONOR ITS GUARANTY VIRTUAL COURSE || JULY 10-11 U.S. Small Business Administration only honors its loan guaranty if the lender can document that it “made, closed, serviced and liquidated the loan in accordance with SBA Loan Program Requirements and prudent lending practices”. This course provides guidance on the mechanics of the purchase process. Since protecting the guaranty starts during loan origination and continues through the purchase process, this course also shares tips for avoiding common deficiencies that result in repairs or denials of liability, making this a “must-take” course for every 7(a) lender. • Overview of Purchase Guidance • When and How to Properly Request Purchase • Understanding the Universal Purchase Package (UPP) • SBA’s Purchase Review Process • Common Denial of Liability Reasons from SOP 50 57 3 • How to Handle Proposed Repairs and Denials of Liability • Care and Preservation of Collateral (CPC) Tabs • Lenders’ Post-Purchase Responsibilities Register now at https://lnkd.in/gUhPntWb #sbalending #sba7a

Annual Conference Registration Is Officially Open! November 4-6 | Hybrid Event The Cosmopolitan of Las Vegas Build lasting connections, engage with industry thought leaders, and join the community that has been at the forefront of 7(a) lending for 40 years. Whether you join us in person or virtually, we are looking forward to celebrating this milestone with you! For 40 years, NAGGL has hosted the industry’s largest meeting of 7(a) lending professionals, who in turn- have impacted the lives of hundreds of thousands of small businesses across the United States. As we come together to celebrate, we’ll highlight where we are today and move forward together to tackle the continuous challenges facing the industry. Join us to enhance your skills, evolve with industry changes, and gain helpful insight and best practices to serve your small business customers prudently and effectively. This event will sell out so register early and stay tuned for more registration information. Register today at https://lnkd.in/gTeWx5H7 #NAGGL2024 #40YearsOfNAGGL #SBALending #SBA7a #LasVegas Thank you to our incredible Sustaining Partners: Cogency Global Inc., GCF Business Valuation, Live Oak Bank, NewtekOne (NASDAQ: NEWT), Starfield & Smith, PC & The Bailey Group