JRB NEWSFLASH! UPDATE FOR CDCs … IMPLEMENTING SBA PROCEDURAL NOTICE 5000-857477

As we all know well, Procedural Notice 5000-857477, effective May 31, 2024, removes restrictions on SBA loans to businesses with an Associate who is on probation or parole. SBA is revising Form 1244 to reflect that change.

Until 1244 is revised, CDCs must determine whether the Applicant is eligible for a 504 loan based on the Criminal Justice Final Rule’s requirements, and they must document the results in the loan file.

As a best practice at JRB, we’re advising our clients to support its statement to that effect by having the Applicant sign a separate certification, attach it to Form 1244 and document in the loan file.

JRB has authored a sample certification. For your convenience, it’s available at your request from JRB Senior Associate Richard Jeffrey.