Mandatory SBA Credit Reporting is Easy and Free

The Small Business Administration has clarified its SOP 50 57, 7(a) Loan Servicing and Liquidation regarding credit bureau reporting.

In an Information Notice sent out on December 15, 2014, the SBA clarified the following:

  • Lenders are required to report to commercial credit account information to the appropriate credit reporting agencies whenever they extend credit via an SBA-guaranteed loan. Lenders should continue to report information concerning the extension of credit, servicing, liquidation, and charge-off activities throughout the life-cycle of the loan.
  • Reporting must be done on no less than a quarterly basis, per the GFCBP (Guide to the Federal Credit Bureau Program – page 3-2).
  • Reporting of guarantors is not required.
  • Lenders are required to provide the following in their reporting:
    • Name, address and taxpayer ID
    • Amount, status and history of the debt
    • Agency or program under which the debt arose
    • Additional elements required by the credit bureau

Even though data reporting has been required by the SBA for several years, most SBA lenders still have yet to get on board with the program. Some may not have enough SBA loans to meet the credit bureaus’ minimum requirements. Others may have been unsure about exactly what’s required. The SBA is increasing their enforcement of reporting requirements. Since the recent clarification memo, “unclear requirements” is no longer an excuse. All SBA lenders must report all SBA loans.

Business Credit Reports, Inc. is a data reporting partner of Experian, Equifax and D&B. We can report your SBA loans to all three commercial bureaus for you. As the largest independent provider of business credit information, licensed by all three major bureaus, we are not subject to the same minimums.

Instead of reporting to three different bureaus, just report to BCR and we’ll do the hard work for you. We don’t have any portfolio size minimums, so whether you have five or 5,000 SBA loans, you can meet SBA requirements and report to all three business credit bureaus by sending us your SBA loan file on a quarterly or monthly basis. It’s easy and it’s free!

Visit our SBA Loan Reporting Page to learn more and access links to the SBA Information Notice and other resources. If you still have questions, contact our in house SBA expert Debbie Golbach at 615-989-7005 or by email Debbie@businesscreditreports.com.