Q. Is the Bank required to report SBA loans to the credit bureaus?
A. The SBA Standard Operating Procedures do set out requirements to report SBA loans to credit reporting agencies, starting on p. 28 here:
“…2. Reports to Credit Reporting Agencies
In accordance with the Debt Collection Improvement Act of 1996, Lenders are required to report information to the appropriate credit reporting agencies whenever they extend credit via an SBA loan. Thereafter, they should continue to routinely report information concerning servicing, liquidation, and charge-off activities throughout the life cycle of the loan. (See Chapter 26 for more information regarding credit reporting requirements for loans in charge-off status.)…”
https://www.sba.gov/sites/default/files/files/SOP_50_57_2_1.pdf
Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email info@compliancealliance.com and ask for our Membership Team.
