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 Withdrawing and re-submitting withdrawn Jobs Act loan applications as non-Jobs Act loan applications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

The following changes to submission of new loan applications will begin at 12:01 a.m. Eastern Standard Time (EST) on February 22, 2010:

General Description of Queues: All 504 loan applications submitted as of February 22, 2010 may be submitted in one of two ways:

• as a non-Jobs Act loan with all applicable fees; or

• as a Jobs Act loan which will be processed and conditionally approved and then placed in a queue awaiting the availability of Jobs Act funds (the “SBA Loan Queue”).

Note: Applications that have been submitted to SBA prior to February 22, 2010, but have not yet received an SBA loan number, will be conditionally approved and then placed in the SBA Jobs Loan Queue unless the CDC notifies SBA that the applicant wants the application submitted as a non-Jobs Act loan subject to all applicable fees.

Applications submitted under delegated and non-delegated processes will be placed in the same SBA Loan Queue.

Requests for increases will be placed in a separate Queue but will have priority over new loan applications for funding.

Once appropriated Jobs Act funds are exhausted, the funding of new loan applications 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 1) funds are limited and 2) increases to previously approved Jobs Act loans are prioritized, new loan applications in the queue may result in significant delays in funding or may not be funded at all. At any point while waiting in the SBA Loan Queue, an applicant may request that the CDC withdraw its application and re-submit it as a non-Jobs Act loan. The CDC will need to submit a request to withdraw the loan application by clicking here to contact the SLPC.

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

The following changes to submission of requests for increases to previously approved Jobs Act loans will begin at 12:01 a.m. Eastern Standard Time (EST) on February 22, 2010:

Queues: On February 22, 2010, requests from CDCs for increases to previously approved Jobs Act loans will be placed in the SBA Loan Queue awaiting the availability of Jobs Act funds. Increases will be funded before new loan applications because increases relate to previously approved Jobs Act loans to small businesses that have determined that additional financing is needed to ensure their success. Requests for increases 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 its request for an increase be withdrawn and re-submitted as a new, non-Jobs Act loan subject to applicable fees.

Requests for increases to existing Jobs Act loans must be submitted to the Sacramento Loan Processing Center.

The SBA Loan Queue for increases will remain open for new requests until 11:00 p.m. Eastern Daylight Savings Time (EDST) on September 17, 2010 in order to provide sufficient time for processing before the end of the fiscal year.

End of Queue: At 11:00 p.m. EDST on September 30, 2010, the requests for increases remaining in the SBA Loan Queues will be withdrawn by SBA. At that time, CDCs will be required to decide whether or not to re-submit these applications as new, non-Recovery Act applications resulting in the applicable fees.

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

Once the appropriated 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 CDCs notify SBA of any previously approved Jobs Act loans that they have cancelled as soon as possible and no later than September 24, 2010.

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

At any point while waiting in the SBA Loan Queue, an applicant may request that the CDC withdraw its application and re-submit it as a non-Jobs Act application with all applicable fees. The CDC will need to submit a request to the SLPC to withdraw the 504 loan application by clicking here.

For Jobs Act loan applications that were not funded by Date, CDCs may re-submit the applications as non-Jobs Act applications using the same application materials. Some of the materials may need to be modified. For example, the CDC’s analysis and recommendation may have to be adjusted since there will be additional costs relating to fees. Also, current financial statements may have to be obtained.

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