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D. SBA Form 601. For any EBL loan where proceeds will be used for construction of more
than $10,000, as indicated on SBA Form 1920, the EBL applicant and contractor must
execute SBA Form 601, “Applicant's Agreement of Compliance.” The Lender must keep
the original signed SBA Form 601 in its loan file. The Lender does not send the form to
SBA.
E. IRS Form 4506-T and IRS Transcript or Equivalent. As discussed above, the Lender
must submit a signed IRS Form 4506-T and obtain an IRS Transcript or equivalent prior
to any disbursement of EBL loan proceeds.
F. SBA Form 912. As discussed above, if any EBL loan applicant or Associate answers
“yes” to questions 18 and/or 19 on SBA Form 1919, “Borrower Information Form,” the
Lender must obtain the required SBA Form 912, “Statement of Personal History,” and
follow the steps outlined in SOP 50 10 prior to submitting the request for an EBL loan
number.
X. How does a Lender close, disburse, service, liquidate, and request
guaranty purchase of an EBL Loan?
A. Closing. The EBL Pilot Program follows the same closing procedures as SBA Express.
The Lender completes the Authorization without SBA review and signs it on behalf of
SBA. The Lender may use the 7(a) Boilerplate or the SBA Express/Export Express
abbreviated authorization. The Lender must complete the Authorization in compliance
with the disbursement requirements below. For Presidential Disaster Declarations, the
Lender must include language in the Authorization requiring that EBL loan proceeds be
used exclusively to support the survival and/or reopening of the EBL borrower within the
eligible Primary or Contiguous Counties. For the COVID-19 Emergency Declaration, the
Lender must include language in the Authorization requiring that EBL loan proceeds be
used exclusively to support the survival and/or reopening of the EBL borrower.
The Authorization may require the EBL borrower to pay the EBL loan in part or in full if
the borrower is approved for long-term disaster financing (including an SBA Direct
Disaster loan) that allows loan proceeds to be used for EBL loan reimbursement. For
EBL loans, the Lender must use the same closing procedures and documentation that it
uses for its similarly-sized, non-SBA guaranteed commercial loans. There must be a
promissory note that is legally enforceable and assignable, in the event that it would ever
have to be assigned to SBA. The Lender should not send any closing documentation to
SBA after closing but should retain all documents in the loan file.
B. Disbursement. Because an EBL loan is a bridge loan, first disbursement of the EBL loan
should occur within 45 days of the Lender’s receipt of an SBA loan number and must
occur no later than 90 days from that date. If the first disbursement is not made within 90
days from receipt of an SBA loan number, the EBL loan will be cancelled.
C. Post-Closing Servicing, Liquidation and Guaranty Purchase. For servicing, liquidation
and guaranty purchases of EBL loans, the Lender must follow SOP 50 57, 7(a) Loan
Servicing and Liquidation. SBA Express procedures apply to EBL loans. Routine EBL
loan servicing and liquidation issues are currently being handled centrally by either
SBA’s Commercial Loan Service Center East in Little Rock at 2120 Riverfront Drive,