SBA Updates data processed from research between 11-2019 and 12-2019
For tonight I have one item to share and then I'll add the remaining 10 or so this week.
Solution 3: Those that have SBA loans and finished all the repairs prior to 12-31-2018 MUST have a contractors invoice or receipts that total up to the SBA loan amount allowed for structural repair or the program will only pay what is listed in your REIMB_ECR. If you lost your receipts, spent more SBA money than the REIMB_ECR shows you best find those missing receipts to fill the gap or the program will not be sending you the total for your SBA loan.
TIP: In 2018 we had issues with the state reviewing line item numbers. The issue was the state views a line item without the 20% contractors overhead. If your contractor that prepares your line item includes overhead be sure to state that on the receipt. If overhead is calculated at the end be sure it's clearly marked as "20% Overhead" which is the states limit. The state will demand a line item list.
The program is only processing Solution 3 Reimbursement households that closed on their grants prior to 12-31-2018 at this time.
(Gen. ltr 1)
When OCD-DRU processes SBA Phase III Zero Award applicants that when changed will show a positive grant award the homeowner will have 30 days from the date of the generic letter to provide the following.
- Certificate of Occupancy
- Contractors Contract (if applicable)
- Invoices and Receipts
(Can be dated after 12-31-2018)
- Elevation Certificate
As in item 1 the program will use it's inspection findings to determine your SBA Repayment amount that is listed in your REIMB_ECR and dated prior to 12-31-2018 as a total if no other proof of expenses have been provided.
(Gen. ltr 1)
If you received a letter that said you have to accept your grant by 1-15-2020 you must accept it even if you feel it's incorrect. The state will "RESCIND" your grant if you do not.
What the letter does not tell the homeowner is the Rescinded grant can be returned to the homeowner once the proper documents or the homeowner has accepted the loan. Typically the OCD-DRU will give you 30 days to complete all required tasks. The OCD-DRU omitted this part of the letter in an effort to allow homeowners to drop out of the program. The OCD-DRU lists Rescinded Grants after 30 days as "Voluntarily Withdrawn" from the program in it's HUD reporting documents.
(Gen ltr 2)
The state is sending SBA two-party check instructions that offer the following instructions.
Check to be endorsed (signed) by person listed on the check. (POA optional must be on file.)
Self addressed stamped envelope is included and should be used to mail the signed check to the SBA.
(Note: some are changing the return address to match homeowners address)
SBA Contact information is supplied in the instruction letter. Do not call the 800 number. The SBA has assigned 4 individuals to assist with SBA repayments.
Do not detach the check stub which shows your SBA loan account number.
It was reported that the state is pushing only Solution 3 households which total an estimated 249 applicants.
The state opted to instruct it's financial team to not process Solution 2 households that fit HUD Guidelines at this time even if they are ready.
IMPORTANT NOTICE: Do not attempt to cash the check at a local bank branch. The state has sent instructions to Hancock / Whitney to not honor the check.
(Gen. ltr 3)
Before any SBA Repayment starts processing the homeowner must finish all construction before the program will pay the SBA.
The OCD-DRU decided to only pay SBA when homeowners complete reconstruction or repairs and move into a status called "Funds Disbursed" or if the homeowner is a Solution 3 only.
This option was designed to reduce "Administrative" costs of issuing more than one SBA reimbursement check and to reduce the chance of a scripting issue or miscalculation that would forced the state to recapture the funds.
(Note updates and items associated with Solution 3 only)
(Gen. ltr 4)