SBA SOP 50 10 8.1, C.Ch2.C.4 — Designated Attorney
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section C.Ch2.C.4 (Designated Attorney). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 1 provision(s) quoted from SBA's .docx.
See also
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, C.Ch2.C.4 — Designated Attorney — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8.1 C.Ch2.C.4
6 sections · 7,318 characters of verbatim text. Open a section to read it, or . Every section below is in the page source whether open or closed.
§4. Designated Attorney255 ch
4. Designated Attorney 13 CFR § 120.802 A Designated Attorney is the CDC closing attorney that SBA has approved to close loans under an expedited closing process for a Priority CDC. a. To become a Designated Attorney, an attorney must submit evidence of:
iA degree from a recognized law school;42 ch
i. A degree from a recognized law school;
iiMembership in the bar of the state in which the attorney’s 504…117 ch
ii. Membership in the bar of the state in which the attorney’s 504 closing practice is or will be primarily located;
iiiProfessional malpractice insurance coverage1,793 ch
iii. Professional malpractice insurance coverage: a) With limits of at least $1,000,000/$1,000,000; and b) A deductible not to exceed $20,000 for individuals and firms with 3 or fewer attorneys, $50,000 for law firms with more than 3 attorneys or $100,000 for large law firms with more than 25 attorneys. c) Applicants may request from the General Counsel, or designee, an increase in the deductible or a hardship exemption with respect to the policy limits. Policy limit reductions to $500,000/$1,000,000 will only be granted to sole practitioners and small firms of three or fewer attorneys, while deductible requirement waivers will only be granted to larger firms with a demonstrated, strong financial history. The General Counsel, or designee, will consider a number of factors when deciding whether to grant or renew a hardship waiver, including, but not limited to, the documentation provided in support of the waiver request, the number of 504 loan closings by the Designated Attorney in the prior 12 months, the total dollar amount of the 504 loans closed by the Designated Attorney in the prior 12 months, and the overall quality of the loan closing packages received from the Designated Attorney. If approved, a hardship waiver will have a duration of 1 year. If an attorney obtains designated status, renewals of hardship waivers may be sought annually for as long as the hardship exists. Approval and renewal of hardship waivers are within the discretion of the General Counsel (or designee). d) Sole practitioners seeking a hardship waiver must state what their present annual premium is and what it would cost to get $1,000,000/$1,000,000 with $20,000 deductible and $500,000/$1,000,000 with $20,000 deductible. All other relevant financial information should also be provided.
ivAttendance at an SBA approved 504 loan closing training course…183 ch
iv. Attendance at an SBA approved 504 loan closing training course. Attorneys may fulfill this requirement up to 1 year prior to designation or within 6 months after designation; and
vAdequate expertise in 504 loan closings4,928 ch
v. Adequate expertise in 504 loan closings94 ch
v. Adequate expertise in 504 loan closings. b. Process to request Designated Attorney status:
iThe CDC nominates the attorney by submitting an application to…1,582 ch
i. The CDC nominates the attorney by submitting an application to Lead District Office in which the attorney’s practice is primarily located. An application must include: a) A submission on the attorney’s letterhead addressing each of the conditions in the previous paragraph; b) A copy of the attorney’s malpractice insurance policy, or a certificate of insurance or declarations page showing the: i) Amount of coverage and deductible; ii) Premium; and iii) Name of the attorney insured. c) If the attorney requests a hardship exemption with respect to the insurance policy limits or a waiver of the amount of the deductible, the attorney must include the request with the application, supported by appropriate information, including: i) The amount of their policy limits or deductible; and ii) The current premium; iii) The quote obtained for the increased premium to meet SBA’s minimum professional malpractice insurance requirements (absent a hardship waiver); iv) The size of the firm; v) The firm’s arrangement for covering the deductible, such as a loss reserve or escrow; vi) Evidence of the firm’s history and financial strength; and vii) For sole practitioners or law firms with fewer than three attorneys, personal financial statements for each attorney seeking Designated Attorney status. c. Other Restrictions/Requirements: i. A designated attorney cannot be: a) An employee of the CDC or of an Associate of the CDC; or b) On the board of the CDC, participate in its lending decisions, or otherwise be too closely associated with the CDC, as determined by SBA counsel.
iiAn attorney may be a member of the CDC, but not an officer,…2,348 ch
ii. An attorney may be a member of the CDC, but not an officer, provided SBA counsel determines the attorney is not too closely associated with the CDC. SBA counsel must consider the attorney’s relationship with the CDC including: a) The degree of control exerted by the attorney on the CDC’s decision-making; b) Any benefits accruing to the attorney through the attorney’s association with the CDC; and c) Any appearance of conflict of interest. d. The Lead District Office forwards the application to the Office of General Counsel (OGC) with the recommendations of the District Director, District Counsel and other SBA District Offices, if applicable. e. OGC will notify the attorney in writing of acceptance by SBA as a designated 504 closing attorney. f. The Lead District Office must allow a CDC to use a non-designated attorney for a reasonable time to develop an additional designated attorney or to replace a designated attorney. In either event, SBA counsel will accept the closing package from a non-designated attorney and conduct a non-priority closing review. g. To maintain Designated Attorney status, an attorney must: i. Deliver annually to the 504 Loan Program Division on or before the renewal of the current policy: a) A certificate from its insurance carrier confirming the existence of professional malpractice insurance in the amount identified in Subparagraph a. iii above. If seeking a hardship waiver or a renewal of an existing hardship waiver, the Designated Attorney must provide: i) The current amount of their policy limits or deductible; ii) The current premium; iii) The quote obtained for the increased premium to meet SBA’s minimum professional malpractice insurance requirements (absent a hardship waiver); iv) The size of the firm; v) The firm’s arrangement for covering the deductible, such as a loss reserve or escrow; vi) Evidence of the firm’s history and financial strength; and vii) For sole practitioners or law firms with fewer than three attorneys, personal financial statements for each attorney seeking designated status. b) Evidence of continued membership and good standing in the bar(s) of all states in which the attorney is approved to serve as designated counsel. ii. Notify SBA immediately if there is a change of status (e.g., new address, new law firm or change in malpractice coverage); and
iiiSubmit evidence of attendance at an SBA-approved closing update…904 ch
iii. Submit evidence of attendance at an SBA-approved closing update course every 2 years. The attorney may take the course any time within the calendar year that their status would expire to maintain their status. h. Withdrawal of Designated Attorney status: The General Counsel, or designee, may withdraw an attorney’s Designated status for good cause, including, but not limited to: unprofessional or unethical conduct; failure to maintain the required insurance coverage; failure to attend the required training; submission of unsatisfactory 504 closing packages (based upon reviews or other evidence); failure to maintain a good working relationship and good communication with SBA; failure to maintain membership and good standing in the bar(s) of all states in which the attorney is approved to serve as designated counsel; and/or failure to comply materially with an SBA Loan Program Requirement.
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