Title 13, Part 120 — Business Loans

Which loan programs does this part cover?

Descriptions of the business loan programs.

Pilot programs.

Severability.

Definitions.

What are the basic eligibility requirements for all applicants for SBA business loans?

Credit not available elsewhere.

[Reserved]

Are businesses financed by SBICs eligible?

Special consideration for veterans.

What businesses are ineligible for SBA business loans?

What conditions must an Eligible Passive Company satisfy?

What are eligible uses of proceeds?

Restrictions on uses of proceeds.

Leasing part of new construction or existing building to another business.

What ethical requirements apply to participants?

What are SBA's lending criteria?

What is the statutory limit for total loans to a Borrower?

Loan conditions.

Flood insurance.

Compliance with child support obligations.

Flood-plain and wetlands management.

Earthquake hazards.

Coastal barrier islands.

Compliance with other laws.

Compliance with Loan Program Requirements.

Status of Lenders and CDCs.

Where does an applicant apply for a loan?

The contents of a business loan application.

Approval or denial.

Reconsideration after denial.

[Reserved]

Disclosure of fees.

Notifying SBA's Office of Inspector General of suspected fraud.

What bonding requirements exist during construction?

Refinancing unsecured or undersecured loans.

Loans for changes of ownership.

What percentage of a loan may SBA guarantee?

What limits are there on the amounts of direct loans?

What limits are there on loan maturities?

What fixed interest rates may a Lender charge?

What conditions apply for variable interest rates?

Fees that Lender pays SBA.

Fees and expenses that the Lender may collect from a loan applicant or Borrower.

Prohibition on sharing premiums for secondary market sales.

Subsidy recoupment fee payable to SBA by Borrower.

Statutory authority.

What assistance is available for the disabled?

Definitions.

DAL-1 use of proceeds and other program conditions.

DAL-2 use of proceeds and other program conditions.

Resolving doubts about creditworthiness.

Interest rate and loan limit.

Policy.

Who is eligible for an energy conservation loan?

What devices or techniques are eligible for a loan?

What are the eligible uses of proceeds?

Are there any special credit criteria?

What is the Export Working Capital Program?

Who is eligible?

What are eligible uses of proceeds?

Collateral.

Unique requirements of the EWCP.

Policy.

Eligibility.

Use of proceeds.

Amount of guarantee.

Collateral.

Policy.

Definitions.

Use of proceeds.

Eligibility.

Creditworthiness.

Which veterans are eligible?

Other conditions of eligibility.

Policy.

Special requirements.

Use of proceeds.

Revolving credit.

What is the Builders Loan Program?

Who may apply?

Are there special application requirements?

What are the eligible uses of proceeds?

What is SBA's collateral position?

What is the term of the loan?

Are there any special restrictions?

America's Recovery Capital (ARC) Loan Program.

Loan Guarantee Agreements.

Requirements for all participating Lenders.

Preferences.

Other services Lenders may provide Borrowers.

Advertisement of relationship with SBA.

Definitions.

Which Lenders may securitize?

Are all securitizations subject to this subpart?

Which 7(a) loans may a Lender securitize?

What are the basic conditions a Lender must meet to securitize?

What are the minimum elements that SBA will require before consenting to a securitization?

What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period?

Will SBA approve a securitization application from a capital impaired Securitizer?

What happens to a securitizer's other PLP responsibilities if SBA suspends its PLP approval privilege?

What conveyances are covered by §§ 120.430 through 120.435?

Which Lenders may sell, sell participations in, or pledge 7(a) loans?

Under what circumstances does this subpart permit sales of, or sales of participating interests in, 7(a) loans?

What are SBA's other requirements for sales and sales of participating interests?

What are SBA's requirements for loan pledges?

Which loan pledges do not require notice to or consent by SBA?

How does a 7(a) Lender obtain delegated authority?

[Reserved]

What is the Preferred Lenders Program?

[Reserved]

What are the requirements of PLP loan processing?

What are SBA's additional requirements for SBA Supervised Lenders?

What are SBA's additional requirements for SBA Supervised Lenders concerning records?

What are SBA's additional requirements on capital maintenance for SBA Supervised Lenders?

Regulatory accounting—What are SBA's regulatory accounting requirements for SBA Supervised Lenders?

Reports to SBA.

Civil penalty for late submission of required reports.

SBA Supervised Lender application.

Evaluation of SBA Supervised Lender applicants.

Change of ownership or control requirements for SBA Supervised Lenders.

What are SBA's additional requirements for SBLCs?

What are the minimum capital requirements for SBLCs?

Higher individual minimum capital requirement.

Procedures for determining individual minimum capital requirement.

Relation to other actions.

[Reserved]

Prohibited financing.

Audits.

Purchase of 7(a) loan guarantees.

What interest rate applies after SBA purchases its guaranteed portion?

Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion.

What is the “earliest uncured payment default”?

When is SBA released from liability on its guarantee?

Deferment of payment.

Extension of maturity.

Standards for Lender and CDC loan servicing, loan liquidation and debt collection litigation.

Servicing and liquidation actions that require the prior written consent of SBA.

Liquidation and litigation plans.

Time for approval by SBA.

Payment by SBA of legal fees and other expenses.

What are SBA's policies concerning the liquidation of collateral and the sale of business loans and physical disaster assistance loans, physical disaster business loans and economic injury disaster loans?

Loan asset sales.

What is homestead protection for farmers?

Who is eligible for homestead protection?

Lease.

Appeal.

Conflict of laws.

Definitions.

SBA Secondary Market.

Form and terms of Certificates.

Pools backing Pool Certificates.

Loans eligible to back Certificates.

Secondary Participation Guarantee Agreement.

SBA guarantee of a Pool Certificate.

SBA guarantee of an Individual Certificate.

Qualifications to be a Pool Assembler.

Suspension or termination of Pool Assembler.

Administration of the Pool and Individual Certificates.

Disclosure to purchasers.

Requirements before the FTA issues Pool Certificates.

Requirements before the FTA issues Individual Certificates.

Transfers of Certificates.

Redemption of Certificates.

Registration duties of FTA in Secondary Market.

Claim to FTA by Registered Holder to replace Certificate.

FTA fees.

Suspension or revocation.

What is the Microloan Program?

Definitions.

Are there limitations on who can be an Intermediary or on where an Intermediary may operate?

How does an organization apply to become an Intermediary?

How are applications evaluated?

What is a Specialized Intermediary?

What are the terms and conditions of an SBA loan to an Intermediary?

What conditions apply to loans by Intermediaries to Microloan borrowers?

What is the Intermediary's financial contribution?

What is the Microloan Revolving Fund?

What is the Loan Loss Reserve Fund?

What rules govern Intermediaries?

How does an Intermediary get a grant to assist Microloan borrowers?

Does SBA provide technical assistance to Intermediaries?

§§ 120.714-120.715 [Reserved]

What is the minimum number of loans an Intermediary must make each Federal fiscal year?

[Reserved]

How a 504 Project is financed.

Definitions.

Applications for certification as a CDC.

Probationary period for newly certified CDCs.

CDC non-profit status and good standing.

Applicability to existing for-profit CDCs.

CDC Affiliation.

CDC Area of Operations.

CDC Board of Directors.

Professional management and staff, and contracts for services.

Financial ability to operate.

Basic requirements for operating a CDC.

Other services a CDC may provide to small businesses.

Minimum level of 504 loan activity and restrictions on portfolio concentrations.

Job Opportunity average a CDC must maintain.

Reports a CDC must submit.

Application to expand an Area of Operations.

SBA decision on application for a new CDC or for an existing CDC to expand Area of Operations.

Case-by-case application to make a 504 loan outside of a CDC's Area of Operations.

Accredited Lenders Program (ALP).

Qualifications for the ALP.

ALP Express Loans.

Premier Certified Lenders Program (PCLP).

Requirements for maintaining and renewing PCLP status.

Requirements for the Loan Loss Reserve Fund (LLRF).

Requirements for 504 loan processing, closing, servicing, liquidating, and litigating by PCLP CDCs.

CDC ethical requirements.

[Reserved]

Inspector General audits of CDCs.

Voluntary transfer and surrender of CDC certification.

Required objectives.

Job creation or retention.

Other economic development objectives.

Leasing Project Property.

Leasing part of Project Property to another business.

Basic eligibility requirements.

Ineligible Projects for 504 loans.

Eligible Project costs for 504 loans.

Eligible administrative costs for 504 loans.

Ineligible costs for 504 loans.

Source of interim financing.

Certifications of disbursement and completion.

Certifications of no adverse change.

Sources of permanent financing.

Borrower contributions.

Land contributions.

Borrowed contributions.

Limitations on any contributions by a Licensee.

Required participation by the Third Party Lender.

Terms of Third Party loans.

Pre-existing debt on the Project Property.

Policies on subordination.

[Reserved]

Referral fee.

Amount.

504 Lending limits.

Interest rate.

Maturity.

Collateral.

Deposit from the Borrower that a CDC may require.

Assumption.

Default.

Borrower prohibition.

Prepayment of the 504 loan or Debenture.

Certificates.

SBA and CDC must appoint agents.

Selling agent.

Fiscal agent.

Trustee.

Central Servicing Agent.

Agent bonds and records.

Suspension or revocation of brokers and dealers.

Responsibility for closing.

Construction escrow accounts.

Servicing of 504 loans and Debentures.

Allowable fees paid by Borrower.

Third Party Lender participation fee and CDC fee.

CDC Liquidation of loans and debt collection litigation.

501, 502 and 503 loans.

Effect of other laws.

Risk-Based Lender Oversight.

Bureau of PCLP Oversight.

SBA access to SBA Lender and Intermediary files.

Risk Rating System.

Monitoring.

Reviews and examinations.

Frequency of reviews and examinations.

Review and examination results.

Confidentiality of Reports, Risk Ratings and related Confidential Information.

SBA Lender oversight fees.

Informal enforcement actions—7(a) Lenders.

Grounds for enforcement actions—SBA Lenders.

Grounds for formal enforcement actions—Intermediaries participating in the Microloan Program.

Types of formal enforcement actions—SBA Lenders.

Other Regulated SBLCs.

Certification and other reporting and notification requirements for Other Regulated SBLCs.

Types of formal enforcement actions—Intermediaries participating in the Microloan Program.

General procedures for formal enforcement actions against SBA Lenders, SBA Supervised Lenders, Other Regulated SBLCs, Management Officials, Other Persons, and Intermediaries.

Definitions used in subpart J.

Program purpose.

Program fee.

Qualifications to be a Pool Originator.

Pool Loans eligible for Pooling.

Pool formation requirements.

Pool Originator's retained interest in Pool.

Seller's retained Loan Interest.

Pool Certificates.

Transfers of Pool Certificates.

Central servicing of the Program.

Suspension or termination of Program participation privileges.

Seller responsibilities with respect to Seller's Pool Loan.

Seller's Pool Loan origination.

Seller's Pool Loan servicing.

Seller's Pool Loan liquidation.

Required SBA approval of servicing actions.

Seller's Pool Loan deferments.

SBA's right to assume Seller's responsibilities.

SBA's right to recover from Seller.

SBA's right to review Pool Loan documents.

SBA's right to investigate.

SBA's offset rights.

Pool Loan receivables received by Seller.

Servicing and liquidation expenses.

No Program Preference by Seller or Pool Originator.

Pool Certificates a Seller cannot purchase.