SBA Form 327, Modification or Administrative Action

What Is SBA Form 327?

SBA Form 327, Modification or Administrative Action is a form previously used by the recommending and approving officials of a Small Business Administration (SBA) loan to perform a servicing action. A servicing action is an action that modifies the existing conditions of a loan.

Servicing actions may be initiated by the Borrowers of SBA-serviced loans or by the Lenders or CDCs servicing the loans.

The modification or administrative action initiated through the SBA Form 327 is called a 327 Action. The SBA Form 327 - otherwise called the SBA 327 Action Letter - is no longer in use and is not distributed through the SBA Forms website. A copy of the form (last updated in June 1993) is available for reference below:

SBA 327 Action

An SBA 327 Action is any action that affects the terms of an SBA Loan. The SBA 327 servicing actions are performed under a rule of two: any SBA 327 action should be recommended and approved by the SBA officials. Both officials must be certified under the delegation of authority to take the action. Usually, the servicing loan officer recommends the action and the line supervisor approves it. Both officials should file the SBA 327 action letter.

An action may be recommended by a recommending official. A recommending official is an SBA staff member that meets the Federal requirements and is authorized by a servicing loan officer to take such actions. 327 Actions may be approved by an approving official - an SBA staff member authorized by a line supervisor to take such actions.

If an approving official does not approve the request for action, they must add comments and recommendations to the request and refer the case to the second level of authority. That authority will then indicate the final action taken and the basis for the decision.