1502 Solutions

In December 1997, SBA Administrator, Aida Alvarez, sent a letter to all SBA 7(a) lenders, which introduced several SBA Form 1502 reporting solutions. SBA and Colson developed these solutions to make the monthly 1502 reporting process easier. Since that time we have had considerable success with lenders utilizing these solutions. Additionally, 67 percent of the 1502 information received from lenders is in an electronic format or can be easily converted to an electronic format using Colson's customized scanning and OCR software.

In an effort to reach the Administrator's goal of 100% electronic reporting, we would like to reacquaint you with the reporting solutions and to introduce several new solutions. Our hope is that these solutions capture your interest and will offer your institution the assistance it may need to fulfill SBA's monthly 1502 reporting requirements.

SOLUTION 1 Borrower/Loan Accounting Performed by Colson

    With this solution, the borrower remits its payment directly to Colson. Colson calculates, accounts for and distributes the funds to the various parties entitled to a portion of the payment. Additionally, Colson handles monthly borrower billing, late notices and produces monthly lender portfolio reports. Colson retains loan payment and balance information and prepares the lender’s monthly 1502 Form. Payments due for secondary market loans and SBA fees are retained by Colson and forwarded to the FTA on the due date, along with the supporting 1502 Form. The lender will receive a monthly report and wire from Colson. A minimum of 50 loans is required. Please call Thomas Kennedy at (212) 815-4871 for more information.

SOLUTION 2 Loan Accounting Performed by Colson

    With this solution, the lender collects the borrower’s payment, but remits 100% of it to Colson, using a standard transmittal form. Colson calculates, accounts for and distributes the funds to the various parties entitled to a portion of the payment. Colson retains loan payment and balance information and prepares the lender’s monthly 1502 Form. Payments due for secondary market loans and SBA fees are retained by Colson and forwarded to the FTA on the due date, along with the supporting 1502 Form. The lender will receive a monthly report and wire from Colson. A minimum of 50 loans is required. Please call Thomas Kennedy at (212) 815-4871 for more information.

SOLUTION 3 Template to Perform Calculations & to File Electronically

    Lenders with unsold loans (subject to and not subject to an SBA basis point fee) can use Colson's 1502 template, which is in Excel and Lotus spreadsheet formats. This template allows lenders to enter 100% portion information and guaranty percentages, if necessary, and it will compute the guaranteed portions. The template also computes SBA fees, where applicable. Lenders with loans sold in the secondary market may also use the template, however, the template will not perform payment due calculations. The lender may remit the 1502 information to Colson on a diskette or via e-mail. The template can be obtained for no charge by calling Colson at (877) 245-6159.

SOLUTION 4 1502 Submission Through the Internet

    The Colson web site allows lenders to link into a file that contains their specific 7(a) loans through the Form 1502 Connection. Lenders input monthly 1502 information directly into the 1502 web site form which will perform SBA fee computations, where applicable. Lenders must register with Colson Customer Service before the web page can be accessed. The web site address is www.colsonservices.com. There is no fee for this solution.

SOLUTION 5 Assist with the Determination of Guaranteed Portions

    Colson will supply lenders with an electronic file of the GP numbers and guaranty percentages for each loan in their portfolio. A fee of $50.00 for preparation, shipping and handling of the file applies.

SOLUTION 6 Receive Information on 100% Portions of Loans

    This method targets lenders with unsold loans not subject to fees. The lender may provide SBA Form 1502 information based on 100% of a loan rather than the guaranteed portion. Colson will convert the information to conform to 1502 requirements for guaranty portion information in certain fields. The lender must register for this solution with Colson Customer Service. Also, SBA Form 1502 information must be supplied in an electronic format. There is no fee for this solution.

SOLUTION 7 Calculation & Payment of SBA's Fee in Advance for Term Loans

    Lenders with unsold loans subject to the SBA ongoing fee may pay SBA's basis point fee annually. The fee is determined by an amortization schedule generated by Colson for every unsold loan in the lender's portfolio subject to a fee. The fee is based on the amortized monthly outstanding guaranteed balance during a 12-month period. The lender MUST still report 1502 information, however, the due date is the tenth calendar day of the month, or the next business day if the tenth is not a business day. The fee for this service is $4.50 per loan per annual cycle (i.e., SBA's fiscal year).

SOLUTION 8 Calculation & Payment of SBA's Fee in Advance for Revolving Loans

    Lenders with unsold revolving loans subject to the SBA ongoing fee may pay SBA's basis point fee in advance. The fee is determined by using each loan's maximum guaranty amount for the base period, which may be semi-annual or annual, based on your preference. Fees paid in advance will not be refunded if the loan defaults or prepays during the base period. The lender MUST still report 1502 information, however, the due date is the tenth calendar day of the month, or the next business day if the tenth is not a business day. The fee for this service is $4.50 per loan per base period.

To receive more information or to register for any of these solutions, please call Colson's Customer Service group at (877) 245-6159.

© Colson Services Corp. 2011. All Rights Reserved.
security statement Security Statement security statement Submit Feedback