Should the applicant cancel or decline the loan or should you allow the SBA to cancel your loan?
The SBA will use a different declined loan code or reason for cancel code depending on your actions. If you simply choose to ignore the phone calls and letters from the SBA you might get a different code than if you informed the SBA that you decline.
image

By Murray Wennerlund published 10-20-2022 updated 10-20-2022

Should the applicant cancel / decline the loan or should you allow the agency (SBA) to cancel your loan?

If you follow the process of "No Communications" by not signing the loan documents SBA will follow it's agency cancellation policy and attempt to contact you before at and just past the signing expiration date. They will then wait for their loan QA department to determine you unresponsive and then decline your loan. This process is typically 60 to 90 days from the date of the loan offer.

Agency Cancellation C10. Failure to complete and return all loan closing documents.

If applicant cancels the loan and specifies a reason the SBA will note and cancel the loan at that time.

Cancellation at Borrower's Request
C20. Adequate recovery from other sources.
C21. Reluctant to incur additional debt.
C22. Dissatisfied with loan terms and conditions.
C23. Dissatisfied with insurance requirements.
C24. Unwilling to pledge collateral.
C25. Did not need all the funds. – (Borrower Decision)
C26. Other reasons. – (Borrower Decision)
C27. Dissatisfied with loan interest rate (market rate). – (Borrower Decision)

If the applicant cancels the loan without a reason the SBA will apply a reason. This method may close the door for additional federal assistance.

Ask for Help: Empower Your Household in Disaster Recovery

By Murray Wennerlund

I work offline documenting disaster recovery needs. Despite bureaucracy and indifference from officials, I persist in advocating for disaster victims, highlighting systemic issues and achieving positive outcomes through relentless efforts.

How to fail your Own Design Criteria Inspections when Build by Design isn't followed.

By Murray Wennerlund

When undergoing a Design Criteria Build inspection by a municipal inspector, adherence to the building codes is essential to avoid failure. Below are common topics, the associated codes, and reasons an inspector might fail the inspection.

How to Fail Your Municipality's Residential Final Mechanical Inspection.

By Murray Wennerlund

Inspections focus on the proper installation, operation, and accessibility of equipment, condensate drainage, gas appliance safety, dryer duct marking, equipment protection, refrigerant access port security, kitchen exhaust hood compliance, etc.