JRB NEWSFLASH! SBA PUBLISHES FINAL RULE AMENDING REGULATIONS FOR CRIMINAL BACKGROUND REVIEWS

On Tuesday, April 30, 2024, SBA published a Final Rule in the Federal Register amending criminal background reviews for the Surety Bond Guaranty Program, and the 7(a), 504, Microloan, ILP and Disaster Loan programs.

Among its major provisions, the Final Rule removes restrictions on Associates on probation or parole, and maintains prohibitions for “… Businesses with an Associate who is currently incarcerated, serving a sentence of imprisonment imposed upon adjudication of guilty, or is under indictment for a felony or any crime involving or relating to financial misconduct or a false statement.”

This Final Rule is effective May 30, 2024. We encourage you to review the Final Rule and update your policies and procedures accordingly. Further, SBA is updating forms 1919 (7(a) loans) and 1244 (504 loans) to conform with the Final Rule. Stay tuned!