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DATE:
AUTHOR:
The SPARK team
Application/Intake General Updates SBA

SBA & SPARK Update Regarding Citizenship Requirements

DATE:
AUTHOR: The SPARK team

The SBA has issued Policy Notice 5000-86574 to comply with Executive Order 14159 regarding citizenship requirements for obtaining 7(a) and 504 loans. To align with this notice, a hotfix will be deployed on Tuesday, March 11th, at 11:00 PM CT.

What's Changed

Ownership Thresholds for E-Tran Submission

E-Tran now mandates a minimum of 81% ownership for submissions.

  • The SBA Ownership stage change validation has been updated to enforce at least 81% ownership.

  • The E-Tran submission validation has been updated to to require a minimum of 81% ownership for submission of business borrowers, entity owners, and operating company guarantors in EPC / OC transactions.

SBA Eligibility Citizenship Section

To align with the changes to citizenship requirements, we've made the following changes to SPARK's Citizenship section:

  • We have updated the verbiage for the citizenship questions:

    • New verbiage for the initial question: Is the applicant business 100% owned and controlled by U.S. citizens?

    • New verbiage for the second question (only applicable if the initial question is answered "No"): Is the applicant business 100% owned by U.S. citizens, U.S. Nationals, and / or those who have lawful permanent resident status from USCIS?

  • The initial question ("Is the applicant business 100% owned and controlled by U.S. citizens?") will only be automatically answered if 100% ownership has been documented for all applicant businesses and operating company guarantors in EPC / OC transactions.

  • The initial question is no longer read-only so that lenders can manually change as needed.

The SBA Eligibility Citizenship changes will only apply to new loans and loans that do not have an SBA Authorization Date or SBA Loan Number.

E-Tran Submission Eligibility Question for Beneficial Owner Certification

A new eligibility question was added to the E-Tran submission to certify that lenders have confirmed that no beneficial owner is an ineligible person.

"No Beneficial Owner is an ineligible person. Ineligible persons include, but are not limited to, foreign nationals, those granted asylum, refugees, visa holders, non-immigrant aliens under 8 U.S.C. ยง 1101(a)(15), those under Deferred Action for Childhood Arrivals (DACA), and undocumented aliens who are in the U.S. illegally."

If you have any questions, please reach out to your Customer Success Manager or email us at support@lendwithspark.com.

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