13 CFR § 120.522 - Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion.
---identifier: "/us/cfr/t13/s120.522"source: "ecfr"legal_status: "authoritative_unofficial"title: "13 CFR § 120.522 - Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion."title_number: 13title_name: "Business Credit and Assistance"section_number: "120.522"section_name: "Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion."chapter_name: "SMALL BUSINESS ADMINISTRATION"part_number: "120"part_name: "BUSINESS LOANS"positive_law: falsecurrency: "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"---
Identifier
/us/cfr/t13/s120.522
Currency
2026-04-05
Positive Law
No
Updated
2026-04-05
Chapter
Small Business Administration
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, 1... 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.
# 120.522 Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion.(a) *Rate of interest.* If SBA purchases the guaranteed portion from a Lender or from a Registered Holder (if sold in the Secondary Market), it will pay accrued interest at:(1) The rate in the note if it is a fixed rate loan; or(2) The rate in effect on the date of the earliest uncured payment default, or of SBA's purchase (if there has been no default).(b) *Payment to Lender*—(1) *For loans approved on or after May 14, 2007.* SBA will pay up to a maximum of 120 days interest to a Lender at the time of guarantee purchase.(2) *For loans approved before May 14, 2007.* The regulations applicable to the amount of interest that SBA will pay to a Lender upon loan default that were in effect immediately prior to this date will govern such loans.(c) *Payment to Registered Holder.* SBA will pay a Registered Holder all accrued interest up to the date of payment.[61 FR 3235, Jan. 31, 1996, as amended at 72 FR 18361, Apr. 12, 2007]