13 CFR § 120.433 - What are SBA's other requirements for sales and sales of participating interests?
---
identifier: "/us/cfr/t13/s120.433"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 120.433 - What are SBA's other requirements for sales and sales of participating interests?"
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "120.433"
section_name: "What are SBA's other requirements for sales and sales of participating interests?"
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "120"
part_name: "BUSINESS LOANS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182."
regulatory_source: "61 FR 3235, Jan. 31, 1996, unless otherwise noted."
cfr_part: "120"
---
# 120.433 What are SBA's other requirements for sales and sales of participating interests?
SBA requires the following:
(a) The Lender must be in good standing with SBA as defined in § 120.420(f) and determined by SBA in its discretion;
(b) The Lender has satisfactory SBA performance, as determined by SBA in its discretion. The Lender's Risk Rating, among other factors, will be considered in determining satisfactory SBA performance. Other factors may include, but are not limited to, review/examination assessments, historical performance measures (like default rate, purchase rate and loss rate), loan volume to the extent that it impacts performance measures, and other performance related measurements and information (such as contribution toward SBA mission); and
(c) In transactions requiring SBA's consent, all documentation must be satisfactory to SBA, including, if SBA determines it to be necessary, a multi-party agreement.
[64 FR 6507, Feb. 10, 1999, as amended at 73 FR 75511, Dec. 11, 2008; 82 FR 39503, Aug. 21, 2017]