What is the purpose of the Transition Phase Alert System?
A. The Transition Phase Indicator, the tri-color graphic on the SBA Recovery Loan Queue web page, is intended to give lenders, Certified Development Companies (CDCs) and potential borrowers a simple way of knowing whether loans are being accepted into the SBA Recovery Loan Queue and the likelihood of a newly submitted recovery loan being funded. In the first two phases of the transition period, lenders and CDCs have the choice of submitting loan applications for processing as a non-Recovery Act loan with all applicable fees and normal guaranty levels, or as a Recovery Act loan and, once conditionally approved by SBA, the application will be given a loan application number and placed in the SBA Recovery Loan Queue (“Queue”). The color-coded Transition Phase Indicator, along with other information on the SBA Recovery Loan Queue web page provides information so that lenders, CDCs and borrowers can make an informed choice between submitting loans as non-Recovery Act loans or as Recovery Ac
