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13 CFR § 120.704 - How are applications evaluated?

---
identifier: "/us/cfr/t13/s120.704"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 120.704 - How are applications evaluated?"
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "120.704"
section_name: "How are applications evaluated?"
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"
---

# 120.704 How are applications evaluated?

(a) *Evaluation criteria.* In selecting Intermediaries, SBA will attempt to insure that Microloans are available to small businesses in all industries and particularly to small businesses located in urban and rural areas.

(b) *Preference for organizations which make very small loans.* In selecting Intermediaries, SBA will give priority to applicants which maintain a portfolio of loans averaging $10,000 or less.

(c) *Consideration of quasi-governmental organizations.* Generally, SBA will consider applications by quasi-governmental organizations only when it determines that program services for a particular geographic area would be best provided by such organization.

[61 FR 3235, Jan. 31, 1996, as amended at 66 FR 47878, Sept. 14, 2001]