1. Submitting new loan applications during the Transition Period

2. Submitting requests for increases to existing Jobs Act loans during the Transition Period

3. Notifying SBA during the Transition Period that a Jobs Act loan has been cancelled

4. Withdrawing and re-submitting withdrawn Jobs Act loan applications as non-Jobs Act loan applications

Submitting new loan applications during the Transition Period

Due to the unprecedented demand for Jobs Act loans in December 2010, the SBA Loan Queue is now closed to new loan requests.

Requests for increases will be placed in a separate Queue but will not have a priority for funding over new loan applications received before December 15.

Because Jobs Act funds are exhausted, the funding of new loan applications already in the Queue or requests to increase previously approved Jobs Act loans will depend entirely on Jobs Act funds made available from the cancellation of previously approved Jobs Act loans.

Because reprogrammed funds will be limited, loan applications in the Queue may result in significant delays or may not be funded at all. At any point while waiting in the Queue, an applicant may request that the lender withdraw its application and re-submit the application as a non-Jobs Act loan with all applicable fees and the lower guaranty.

Submitting requests for increases to existing Jobs Act loans during the Transition Period

Due to the unprecedented demand for Jobs Act loans in December 2010, the SBA Loan Queue is now closed to new requests for loan increases. Requests for increases already in the Queue may experience significant delays and it is possible that a request may not be funded. At any point while waiting in the SBA Loan Queues, an applicant may ask that the lender withdraw its request for an increase and re-submit it as a new, non-Jobs Act loan with all applicable fees and lower guaranty percentages.

End of Queue: At 11:00 p.m. EDST on March 4, the requests for increases remaining in the SBA Loan Queues will be withdrawn by SBA. At that time, lenders will be required to decide whether or not to re-submit these applications as new, non-Jobs Act applications resulting in the applicable SBA guaranty fees and the lower guaranty levels.

Notifying SBA during the Transition period that a Jobs Act loan has been cancelled

Now that Jobs Act funds are exhausted, the only source of funds for new Jobs Act loans or increases to previously approved Jobs Act loans will be from the cancellation of Jobs Act loans that have already been approved. Therefore, it is extremely important that lenders and CDCs notify SBA of any previously approved Jobs Act loans that they have cancelled as soon as possible and no later than February 28.

Caution: Each month SBA processes approximately $1.5 million of 7(a) loan reinstatements for loans that were erroneously reported by lenders as cancelled. If a Jobs Act loan is cancelled by mistake by a lender, there will likely not be enough funds from Jobs Loan cancellations to reinstate it. After March 4, a Jobs Act loan that is erroneously reported to SBA as cancelled by a lender cannot be reinstated in any case because SBA will not have the legal authority to do so

Withdrawing and re-submitting withdrawn Jobs Act loan applications as non-Jobs Act loan applications

At any time while waiting in the SBA Loan Queue, lenders have the option to withdraw a loan application from the Queue and re-submit the loan application as a non-Jobs Act loan with all applicable fees and lower guaranty percentages:

• For delegated lenders that use E-tran, the lender would search for the loan just as they would for other loans in their portfolio. The “withdrawal” button is located on the top of the page, next to “submit.”

• For loan applications that were submitted through the Standard 7(a) Guaranty Loan Processing Center (LGPC), the lender will need to submit a request to withdraw the loan application by clicking here to contact the LGPC.

In both situations, lenders may then re-submit the applications as non-Jobs Act loans using the same application materials. Some of the materials may need to be modified. For example, the lender’s analysis and recommendation will have to be adjusted if the SBA guaranty percentage is reduced resulting in increased risk to the lender. Also, current financial statements may have to be obtained. Delegated lenders may re-submit these loan applications under their delegated authority. Otherwise, the new non-Jobs Act loan applications are to be submitted to LGPC.

SBA strongly encourages lenders not to charge additional fees in connection with the re-submission of these applications.