Intermediary Performance or Credit Administration Review

OMB Control Number 3245-0365

Expiration Date XX/XX/XXXX

U.S. Small Business Administration

Washington, DC 20416

Sent via e-mail to: [Intermediary’s Executive Director/President/CEO]

[Date]

[Intermediary’s Executive Director or President or CEO’s name]

[Title]

[Intermediary Name]

[Physical address]

[City, State and Zip Code]

Re: Notice of Selection for a Review

Dear [Mr./Ms. CEO/ED or President’s Last Name]:

Your organization has been selected for a review to assess compliance with SBA Loan Program Requirements as defined in 13 CFR 120.10.

In accordance with 15 USC 657t(c)(2) and 13 CFR §120.1050, SBA, Office of Credit Risk Management (OCRM) conducts a review of Microloan Program Intermediaries to assess [portfolio performance] or/and [credit administration]. In conjunction with this review, SBA requires Intermediary to submit the information listed in the Attachment to assist SBA in performing the review and assessing the Intermediary’s SBA performance and compliance with SBA Loan Program Requirements.

Please provide a copy of documents listed below in electronic format. Each requested item must be a separate document and clearly labeled with the corresponding item number or document title. If the information is not available, please note the reasons.

Please upload the requested documents to Box.com, a secure file transfer system, using the link provided below:

Box.com Upload Link: [insert Box.com link here]

Should you have any questions, or if you encounter any issues uploading files, please contact [Financial Analyst Name], your assigned Financial Analyst in the OCRM, at [Financial Analyst email address].

Thank you for your participation in the Microloan program.

Sincerely,

[Name]

[Title]

Office of Credit Risk Management

cc: Name, Title, Office of Credit Risk Management

Name, Title, Microloan Program Office

Name, District Director, [Name] District Office

PLEASE NOTE: You are not required to respond to any collection of information unless it displays a currently valid OMB Approval number. The number for this collection of formation is 3245-0365. The total estimated time to respond to this collection of information, including gathering and maintaining the data needed, and completing and reviewing the collection of information, is 202 minutes. You may send comments or questions regarding this estimated time or any other aspect of this collection of information including suggestions for reducing the time or other burden to: Director, Records Management Division, 409 Third Street, S.W., Washington D. C. 20416, and Desk Officer for the Small Business Administration, Office of Management and Budget, New Executive Office Building, Room 10202, Washington DC 20503. PLEASE DO NOT SEND REPORTS, APPLICATIONS, OR OTHER FORMS TO THESE ADDRESSES.

Disclosure of Information – Requests for information contained herein may be denied unless SBA has the written permission of the individual to release the information to the requestor or unless the information is subject to disclosure under the Freedom of Information Act, 5 U.S.C. §552. The Privacy Act, 5 U.S.C. §552a, authorizes SBA to make certain “routine uses” of information protected by that Act. One such routine use is the disclosure of information maintained in SBA’s system of records when this information indicates a violation or potential violation of law, whether civil, criminal, or administrative in nature. Specifically, SBA may refer the information to the appropriate agency, whether Federal, State, local or foreign, charged with responsibility for, or otherwise involved in investigation, prosecution, enforcement, or prevention of such violations. Another routine use is disclosure to other Federal agencies conducting background checks but only to the extent the information is relevant to the requesting agencies’ function. See, 74 F.R. 14890 (2009), and as amended from time to time for additional background and other routine uses.

Microloan Program Intermediary Review

Attachment to Notice of Review

In accordance with 15 USC 657t(c)(2) and 13 CFR §120.1050, SBA, Office of Credit Risk Management (OCRM) conducts review of Microloan Program Intermediaries to assess [portfolio performance] or/and [credit administration]. In conjunction with the review, SBA requires Intermediary to submit the below information to assist SBA in performing the review and assessing the Intermediary’s SBA Microloan Program performance and compliance with Loan Program Requirements.

Instructions for the submission of requested information are in the attached cover letter.

**Please note, in general, for information that has already been provided by an Intermediary but is unchanged, the Intermediary may certify that the information was already provided and is unchanged in lieu of resubmitting the information. The certification that must accompany this document submission must also state to whom and on what date the information was provided to SBA.

Please provide SBA with the following items for the upcoming Microloan Intermediary Review by (MM/DD/YYYY):

1. List of Board of Directors and Staff - Attachment

(Include the following for each individual first & last name, email address phone number, background & area of expertise, and number of years on board).

2. Organizational Chart

(Include a current organizational chart showing reporting lines and key roles. Please also provide a brief explanation of the structure, including how responsibilities are divided among leadership, staff, and board oversight.)

3. Current version of Intermediary’s Microloan Internal Credit Policies and Procedures

Portfolio Performance

[Attach the Lender Detail Report and select the appropriate items for the review, as applicable selection may vary depending on the specific circumstances]

Attached is the latest Lender Detail report of your organization’s active Microloan portfolio, which includes key details such as borrower name, closing date, loan amount, outstanding balance, loan status, etc.

Please review the attached Lender Detail MS Excel file and complete the following requested information for each loan in the designated column:

• Multi-Party Financing – Indicate the portion of the Microloan amount funded by SBA direct loan if multi-party financing method was used.

• Original Note – Confirm whether the Intermediary maintains the original Microloan note and any note modifications (if applicable).

• Microloan Statement – Confirm the following statement appears on each Microloan note, either in the body of the language or as an addendum initialed by the borrower.

“This note has been pledged to the U.S. Small Business Administration (SBA) as collateral. Further assignment cannot be made without prior written consent of the SBA.”

• Outstanding Balance – Provide the outstanding loan balance as of each month within the quarter covering [insert Quarter, Year].

• Scheduled Monthly Payment – Enter the borrower’s scheduled monthly payment amount.

• Payment Received: Disclose the total amount received from the borrower for each month in the specified quarter.

• Deposit Amount – Indicate the amount deposited into the corresponding Microloan Revolving Fund (MRF) account for each month in the specified quarter.

• Loan Status – Disclose the loan status applicable to each month (e.g., current, 30, 60, 90, 120, 120+ delinquent).

• Deferment Period – Specify any active deferment periods applicable in each month of the specified quarter (if any),

Please provide SBA with the following items for the upcoming Microloan Intermediary Review by (MM/DD/YYYY):

Credit Administration

The Microloan files selected for review are as follows:

SBA Loan Number	Borrower Name	MPERS Seq. #	Lender Loan #

1. Loan Application or Intake form materials.

2. Credit Memo / Credit Analysis

(Document must include Approving Officer’s name, title, and signature)

3. If loan is over $20,000, No Credit Elsewhere documentation

4. Evidence of Credit Alert Verification Reporting System (CAIVRS) search for the Applicant and its Associate(s)

5. Evidence of SAM.GOV exclusions search for the Applicant and its Associate(s)

6. Evidence of Legal Status of ALL Associates (e.g., copy of permanent Resident Card, I551)

7. Copy of Note and any Note Modification(s)

8. Evidence of Use of Proceeds

9. Evidence of any fees charged to the Borrower (e.g., closing costs, packaging fees, application fees, administrative fees, etc.)

10. Proof of Borrower’s Business Legal Structure

(e.g., Business Tax Returns, IRS issued EIN letter, Business License, Business Permit, Entity formation filing with Secretary of State, Bylaws, Articles of Membership or Incorporation, etc.)

11. Loan Payment History with amortization schedule

12. Technical Assistance Records

13. Number of Jobs Created and Retained (provided by the Applicant)

14. If applicable, Guaranty Agreements

SBA Form TBD