SBA Form 1502 and Instructions

This form is to be completed monthly by lenders participating in the SBA’s 7(a) loan program in order to collect payment and loan information.

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SBA form 1502 field descriptions

This form is to be completed monthly by Lenders participating in SBA’s 7(a) loan program in order to collect payment and loan information. Completed forms must be submitted to SBA’s 7(a) Fiscal and Transfer Agent.

1. Lender Information: Must state the lender’s name, address, contact person, telephone and fax numbers. Check [ ] the box in the upper left-hand corner of the form when any information changes.
2. Month-Ending Information: Show the last day of the month for which information is being reported. Check [ ] the box in the upper right-hand corner when your 1502 Form includes secondary market prepayments or late payments.
   1. SBA GP Number: The 10 digit numerical SBA-assigned loan identification number. The GP number is the key to identifying SBA 7(a) loans on SBA's and the FTA's databases. If less than 10 digits are reported, the payment information cannot be processed. This field is MANDATORY.
   2. Lender Loan Number: The lender's loan identification number, that is, the number the lender has assigned to the loan (optional).
   3. Next Installment Due Date: The date the borrower is scheduled to make its next payment. Based on the status of the loan, the next installment due date is reported as follows:
      1. Current - date of next scheduled payment due
      2. Past Due - date of the first missed scheduled payment
      3. Deferred (status 4) - date borrower is to resume making payments
      4. In Liquidation (status 5) - leave blank
      5. Paid-in-Full (status 6) - leave blank
      6. Transferred (status 7) - leave blank
      7. Purchased by SBA (status 8) - leave blank
      8. Fully Undisbursed (status 9) - leave blank
      9. Special situations: Newly disbursed and large principal balance loans (where payments are made late), and loans in work-out (without a deferment) — if the full payment amount as called for in the note is made but applied solely to interest, report next installment due date as next payment date. If full payment amount as called for in the note is not made, report next installment due date as date of first missed full payment. Next installment due date advances to the next payment date once the full payment amount is received.
      1. Current - interest paid-to-date is less than 31 days from the month ending date. For example, loan's interest is paid to 3/2/YY for the period ending 3/31/YY. Leave Status Code column blank.
      2. 31-60 Days Past Due - interest paid-to-date is 31-60 days from the month ending date. For example, loan's interest is paid to 2/12/YY for the month ending 3/31/YY. Leave Status Code column blank.
      3. Over 60 Days Past Due - interest paid-to-date is over 60 days from the month ending date. For example, loan's interest is paid to 1/3/YY for the month ending 3/31/YY. Leave Status Code column blank.
      4. Status 4: Deferred - principal or principal and interest (P&I) payments have been deferred. For example, loan's P& I payments are deferred and are to resume on 5/1/YY. Report Next Installment Due Date as 5/1/YY, Status Code 4, Interest To date and Guaranteed Portion Closing Balance as of last payment received.
         1. Common reporting error:
            1. Status 4 is entered the first month the loan is placed in Deferred Status and not in subsequent months while in Deferred Status.
            2. Status 4 must be entered every month the loan is in Deferred Status.If not, the loan will not be reflected as in Deferred Status.
            1. Common reporting error:
               1. Guaranty Portion Principal Payment is not entered and error will be generated and that loan entry will be rejected
               2. Guaranty Portion Principal Payment must be entered to reduce balance to Zero
               1. (1) If lender repurchased the guaranteed portion from the secondary market, but SBA has not purchased the guaranteed portion from lender, (a) The lender must continue to report on the loan monthly. (b) The reported Status Code for the loan would be blank (if 1, 2, or 3), or 4, 5, or 7 depending on the loan's situation, until the SBA purchase takes place.
               2. (2) Should the Borrower pay off the loan prior to SBA’s purchase, the loan should be reported as a Status Code 6.
               1. Report Status Code 9 and indicate the Amount Undisbursed on Total Loan, until such time that the loan is disbursed.
               2. Revolving loans - once the first disbursement takes place, the loan must not be reported as Status Code 9 again, even in instances where the full amount of the credit line is replenished by the Borrower.
               • Example: Based on a $100,000.00 loan (100% or total approved)
               • 3/02/YY: $10,000 disbursed (on total loan)
               • 3/25/YY: $10,000 disbursed (on total loan)
               • Amount disbursed for month ending 3/31/YY = $20,000
               • Example: Based on a $100,000.00 loan (100% or total approved)
               • 3/02/YY: $10,000 disbursed (on total loan)
               • 3/25/YY: $10,000 disbursed (on total loan)
               • Amount undisbursed for month ending 3/31/YY = $80,000.00
               1. Sold Loans - the rate of interest used to calculate the interest payment due the FTA (i.e., the borrower's note rate less the lender's servicing fee percentage). SBA Form 1502 (2/2014) Previous edition obsolete
                  • Example:
                  • OMB Control Number: 3245-0185 Expiration Date: 02/28/2017
                  • Note rate = Prime + 2.50%
                  • Lender's servicing fee = 1.00% Secondary market rate = Prime + 1.50% Prime = 4.75%
                  • Rate reported = 6.25%
                  • [Note Rate 4.75(Prime) + 2.50 = 7.25 -1.00(Lender Servicing Fee = 6.25]
               2. Unsold Loans - if an interest payment is reported, the rate of interest charged to the borrower.
                  • Example:
                  • Note rate = Prime + 2.50%
                  • Prime = 4.75%
                  • Rate reported = 7.25%
                  • No Payment Received - if no interest payment was received, leave blank
               1. Sold Loans - the interest payment due to the FTA on behalf of the secondary market investor. That is, the guaranteed portion of the borrower's interest payment received less the lender's servicing fee.
                  • Example:
                  • $100,000.00 x 80% guaranty = $80,000.00 guaranteed portion Interest monthly payment on total loan @ 12.00% = $1,000.00 ($100,000 x 12% = $12,000 ÷ 360 days x 30 days = $1,000 for monthly payment);
                  • On guaranteed portion = $800.00 ($1,000 x 80% = $800.00)
                  • Lender's servicing fee = $80,000.00 x 1% ÷360 x 30 = $66.67 Interest due to FTA = $800.00 - $66.67 = $733.33
               2. Unsold Loans - the borrower's interest payment received multiplied by the guaranty percentage.
                  • Common reporting errors:
                  • The SBA fee amount or guaranteed portion balance is reported in this column
                  • Interest on 100% of the loan is reported instead of just the guaranteed portion.
                  • Example: Interest payment on total loan = $1,000.00 x 80% guaranty = $800.00
               3. No Payment Received - if no interest payment was received, leave blank.
               1. Sold Loans- the principal payment due the FTA on behalf of the secondary market investor. That is, the guaranteed portion of the borrower's principal payment received.
                  • Example: Principal payment on total loan = $200.00 x 80% guaranty = $160.00
               2. Unsold Loans - same as for sold loans.
                  • Example: Principal payment on total loan = $200.00 x 80% guaranty = $160.00 No Payment Received - if no principal payment was received, leave blank.
               3. No Payment Received - if no principal payment was received, leave blank.
                  • For unsold loans, if interest and principal payments due in prior months (i.e., past due payments) are received in the current reporting month, report each payment received on this month's 1502 form
               1. Sold Loans - the sum of the guaranteed portion interest + guaranteed portion principal is reported and remitted to the FTA.
                  • Example:
                    • Guaranteed Interest (less servicing fee) = $733.33
                    • Guaranteed Principal = $160.00
                    • Total to FTA = $893.33
               2. Unsold Loans (subject to SBA 50 basis point fee) - for loans approved on or after October 12, 1995, SBA’s 50 basis point fee is remitted every month the borrower makes an interest payment.
                  1. Common reporting error: the sum of guaranteed interest + guaranteed principal reported is entered in this column; enter the fee amount only in this column as this is an Unsold Loan.
                  • Example:
                  • Guaranteed Portion Opening Balance = $100,000.00 x 80% guaranty = $80,000.00
                  • $80,000.00 x .005 ÷ 360 x 30 days = $33.33
                  • Total to FTA = $33.33
                  • Example:
                  • Guaranteed Interest Amount = $800.00
                  • $800.00 x .005 ÷ 12.00% = $33.33
                  • Total to FTA = $33.33
                  1. Common reporting error: the sum of guaranteed interest + guaranteed principal reported is entered in this column; enter the fee amount only in this column as this is an Unsold Loan.
                  • Example:
                  • Total loan = $100,000.00 x 80% guaranty = $80,000.00 $80,000.00 x .0025 ÷ 360 x 30 days = $16.67
                  • Total to FTA = $16.67
                  • Example:
                  • Guaranteed Interest Amount = $800.00 $800.00 x .0025 ÷ 12.00% = $16.67
                  • Total to FTA = $16.67
                  1. Common reporting error: the sum of guaranteed interest + guaranteed principal reported is entered in this column. Only reflect the fee paid for Unsold Loan.
                  • Example:
                  • $100,000.00 total loan; 12.00% interest rate; 30/360 basis
                  • Borrower makes $1,000.00 interest payment on 3/15/YY. Last interest paid-to-date was 2/15/YY.
                  • Calculation $100,000.00 x .12 ÷ 360 x 30 days = $1,000.00 For the reporting period ending 3/31/YY
                  • Interest Period From: 2/15/YY Interest Period To: 3/15/YY
                  1. For newly disbursed loans that are not in repayment mode, report the date interest accrues from (first disbursement date) in this column. Also, be certain to indicate the Guaranteed Portion Closing Balance in the appropriate column.
                  • Example:
                  • 2/15/YY to 3/15/YY = 30 days on a 30/360 basis
                  • 2/15/YY to 3/15/YY = 28 days on a 365/365 basis (non-leap years) NOTE: that the interest paid-to-date (in this case 3/15/YY is not included in the count)
                  1. Sold Loans - the guaranteed principal balance outstanding after the application of the reported guaranteed portion principal payment.
                  2. Unsold Loans - same as for sold loans.
                     • Example:
                     • Total loan = $100,000.00 with 80% guaranty
                     • Guaranteed principal balance = $80,000.00
                     • Principal payment = $200.00
                     • Guaranteed principal payment = $160.00 (i.e., $200.00 x 80%)
                     • Total loan closing balance = $99,800.00
                     • (i.e., $100,000.00 - $200.00)
                     • Guaranteed Portion Closing Balance = $79,840.00
                     • (i.e., $99,800.00 x 80% or $80,000.00 -$160.00)
                  3. No Payment Received - if no payment was received from the borrower, indicate the guaranteed principal balance as of the last payment received.