SBA SOP 50 10 8.1, C.Ch2.C.3 — The Closing Package

SOP 50 10 8.1 C.Ch2.C.3

Effective 2026-10-01 · publisher's stamp for this provision

3. The Closing Package a. Types of Loan Closing Packages: i. Regular closing package submitted by either non-Priority CDCs or Priority CDCs who are not using a Designated Attorney; and ii. Expedited closing package submitted by a Priority CDC using a Designated Attorney under the expedited closing process. b. The Closing Package: i. CDCs and SBA must use SBA Form 2286, “504 Debenture Closing Checklist,” (Checklist) for all 504 debenture closings. The Checklist lists the documents SBA requires to determine whether the debenture can be sold to fund the loan. It is not intended to include all the items the CDC will need to properly close the loan. ii. SBA requires that the CDC submit to SBA counsel for review a completed SBA Form 2286 along with the required items on the Checklist. In rare circumstances if an additional document is necessary, the CDC may submit it along with an explanation of the significance. c. Mandatory Forms: i. Documents on the Checklist that have an SBA form number ii. Opinion of CDC Counsel; and iii. The SBA-approved environmental indemnification agreement. CDCs may use their own forms for the lien instruments on Project Property and secondary collateral. Those forms must be either state bar-approved forms or approved by SBA counsel prior to submission. The lien instruments on real estate must contain a due-on-sale clause. d. The closing process for ALP Express Loans is the same as the closing process for PCLP Loans. ALP Express Loans may only be closed using a Designated Attorney in good standing who will execute the required Opinion of CDC counsel indicating that the project loan has been closed in accordance with the SBA Terms and Conditions of the 504 loan and SBA Loan Program Requirements for each loan. An ALP CDC must submit an ALP Express Loan closing package using a Designated Attorney under the expedited closing process described in this paragraph. In addition to the items above, the ALP CDC must also submit to SBA counsel all loan modification actions (327 Actions) on the ALP Express Loan, including those authorized under the CDC’s ALP Express delegated authority as outlined in paragraph B.3 of this Chapter. ALP CDCs may not use ALP Express authority to close or service a loan that was not approved using ALP Express delegated authority but must instead process closing and servicing actions through the process that applies to the CDC’s non-delegated loans.

Source: SBA SOP 50 10 8.1, C.Ch2.C.3 — The Closing Package · source URL · snapshot 0fb0c4692cf52938