U.S. Small Business Administration Office of Capital Access 504 Connect Call December 4 , 2018

Office of Capital Access Bill Manger – Welcome and OCA Updates Bill Briggs – Marketing Steve Kucharski - OPSM Director Dianna Seaborn – OFA Director Linda Reilly – 504 Program Chief Jihoon Kim – OFPO Director Hien Nguyen – SLPC Director Susan Streich – OCRM Director Paul Kirwin – 504 Team Lead

Office of Capital Access Bill Manger Associate Administrator

504 Loan Activity 504 Lending Activity 504 Franchise Lending Activity Time Period Comparison (activity through 10/31 of each FY)

Top Ten Lenders CDC Small Business Finance Corporation, CA Thank you! Top Ten Lenders CDC Small Business Finance Corporation, CA Loans Made: 265 Mortgage Capital Development Corporation, CA 232 Empire State Certified Development Corporation, NY 213 Florida First Capital Finance Corporation, Inc., FL 214 Florida Business Development Corporation, FL 203 Mountain West Small Business Finance, MT 192 Business Finance Group, VA 121 California Statewide Certified Development Corporation, CA 133 Small Business Growth Corporation, IL 171 WBD, Inc., WI 144

Office of Capital Access

Office of Capital Access Bill Briggs Senior Advisor

New Marketing Materials

New Marketing Materials

New Marketing Materials

Contact your District Office Decals Now Available! Free Training Eligibility SOP Interpretations 912’s &1081’s Direction Servicing Modifications Local Resource Partners Status Checks Screen Outs Insurance Requirements OIG Referrals Starting the Liquidation Process Secondary Market info And so much more… Click here to find your District Office

Office of Performance and Systems Management Steve Kucharski Director Stephen.Kucharski@sba.gov

Office of Financial Assistance Dianna Seaborn Director Dianna.Seaborn@sba.gov

504 Program News Hot Topics SBA submitted comments to FDIC/OCC/Fed Reserve board on HVCRE ADC – deadline was November 27, 2018 Comments are due on the Express Rule which also includes topics that impact 504 – affiliation and personal resource test – comments due to SBA by Dec 18, 2018 SOP 50 10 5 (K) to be released in December 2018 with effective date of February 1, 2019 Job Creation/Retention Federal Register update issued November 2, 2018; comments were due by December 3, 2018

504 Loan Program Linda Reilly Chief Linda.Reilly@sba.gov

Updated Job Opportunity Requirements: 504 Program News Hot Topics Updated Job Opportunity Requirements: 504 Projects must achieve at least 1 Job Opportunity created or retained per every $75,000 of project debenture ($120,000 for Small Manufacturers) unless one of the 15 community development or public policy goals is met. CDCs’ portfolios must maintain a Job Opportunity average of one Job Opportunity created or retained for every $75,000 guaranteed ($85,000 for Projects located in Special Geographic Areas).

912 Processing If an applicant answers positive for previous arrest(s) they must complete and provide the following: SBA Form 912 - Statement of Personal History Expiration date of 2019 (upper right hand corner) FD-258 Must be signed and completed in full with black ink (only original needed) A detailed explanation, signed and dated by the Subject Individual, including all previous charges, dates, city or counties of occurrence, level of final convictions (misdemeanor or felony) and all sentencing requirements Court must provide letter indicating all fees, and or restitution paid and Probation Dept. must provide documentation probation was completed (and paid) as required. If subject individual is still on probation or conditional discharge, Applicant is not eligible

CDC Misdemeanor Reviews 912 Processing CDC Misdemeanor Reviews CDC will review the complete 912 package and if all final convictions were misdemeanors (no charges or probation ending in last 6 months or charges with crimes against children). Do Not Submit to SBA. The CDC retains the supporting information and court documentation, including the original complete SBA Form 912 Package in the file and may process the application with no review of the SBA Form 912 by SBA. SBA will not review. If sentencing and other conditions of the court have not been satisfied, Applicant is not eligible

Court Documentation If sentencing and other conditions of the court have not been satisfied, then the Applicant is not eligible… SOP 50 10 5 (J) A letter from the county indicating there are no outstanding fines, fees or restitution due is acceptable. A letter from the probation department indicating subject individual is no longer on probation is acceptable. The court documentation requirement cannot be self-certified, stated by attorney or provided by Lexus Nexis. Evidence from the court and probation dept. must be submitted with package in order to be processed.

Office of Financial Program Operations Jihoon Kim Director Jihoon.Kim@sba.gov

Sacramento Loan Processing Center Hien Nguyen Director Hien.Nguyen@sba.gov

SLPC Hot Topics New hotel Construction - Loan Authorization appraisal requirement: Should be for a valuation that is at least equal to the total project cost; and Upon completion appraised value should include the real estate and all FF&E Property taxes: Are an eligible project cost when purchasing the property but not for maintaining the property. After loan approval, property taxes are an ongoing expense. Cannot be included in the interim loan once the property has been purchased. After interim loan approval, property taxes are an ongoing expense.

Office of Credit Risk Management Susan Streich, Director Susan.Streich@sba.gov Paul Kirwin, 504 Team Lead Paul.Kirwin@sba.gov

OCRM OPERATIONAL REVIEW REPORT Report template streamlined and reduced to 1 page in January of 2018. District Offices should submit their Operational Review Reports to OCRM at cdcannualreports@sba.gov, within 60 days of receipt of the CDC’s Annual Report. JOBS TESTING OCRM will begin the testing of CDC-reported jobs created and/or retained numbers in January of 2019. OCRM will send information requests directly to the CDCs, but will copy the local district office on requests. We test 5 loans annually as part of the jobs testing process. LENDER PORTAL OCRM updated the Lender Portal, effective 3rd QTR FY 2018, so that it now includes all of the CDC’s SMART metrics along with other detailed reports on the CDC’s 504 loan portfolio.

2019 504 Connect Calls Save the Dates! All calls start at 3:00 Eastern March 5, 2019 June 4, 2019 September 10, 2019 December 10, 2019 Need an invitation? Email Ginger Allen at Ginger.Allen@sba.gov 2019 504 Connect Calls

March 5th 504 Connect Call 3:00pm EST Save the Date! Step 1: Dial into the conference 10 minutes prior. Dial-in: 1-877-369-5243 Access Code: 0884813##   Step 2: Join the conference on your computer. Entry Link: http://ems8.intellor.com/login/810584 Copy and paste this link into your web browser March 5th 504 Connect Call 3:00pm EST

January 8th 7(a) Connect Call 3:00pm EST Save the Date! Need an invitation? Email LaShun Johnson at Lashun.Johnson@sba.gov

Who has the first question????