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Home Page > Executive Branch > Code of Federal Regulations > Electronic Code of Federal Regulations
e-CFR Data is current as of February 4, 2010
TITLE 13--Business Credit and Assistance
CHAPTER I--SMALL BUSINESS ADMINISTRATION
PART 120--BUSINESS LOANS
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| Which loan programs does this part cover? |
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| Descriptions of the business loan programs. |
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Subpart A--POLICIES APPLYING TO ALL BUSINESS LOANS
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| What are the basic eligibility requirements for all applicants for SBA business loans? |
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| Credit not available elsewhere. |
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| Funds not available from alternative sources, including personal resources of principals. |
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| Are farm enterprises eligible? |
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| Are businesses financed by SBICs eligible? |
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| Special consideration for veterans. |
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| What businesses are ineligible for SBA business loans? |
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| What conditions must an Eligible Passive Company satisfy? |
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| What are eligible uses of proceeds? |
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| Restrictions on uses of proceeds. |
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| Leasing part of new construction or existing building to another business. |
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| What ethical requirements apply to participants? |
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| What are SBA's lending criteria? |
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| What is the statutory limit for total loans to a Borrower? |
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| Compliance with child support obligations. |
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| Flood-plain and wetlands management. |
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| Compliance with other laws. |
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| Lender and CDC compliance with Loan Program Requirements. |
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| Status of Lenders and CDCs. |
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| Where does an applicant apply for a loan? |
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| The contents of a business loan application. |
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| Reconsideration after denial. |
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| Notifying SBA's Office of Inspector General of suspected fraud. |
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Subpart B--POLICIES SPECIFIC TO 7(A) LOANS
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| What bonding requirements exist during construction? |
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| Refinancing unsecured or undersecured loans. |
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| Restrictions on loans for changes in ownership. |
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| What percentage of a loan may SBA guarantee? |
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| What limits are there on the amounts of direct loans? |
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| What limits are there on loan maturities? |
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| What fixed interest rates may a Lender charge? |
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| What conditions apply for variable interest rates? |
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| What interest rates apply to smaller loans? |
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| Fees that Lender pays SBA. |
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| Fees which the Lender may collect from a loan applicant. |
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| Fees which the Lender or Associate may not collect from the Borrower or share with third parties. |
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| Subsidy recoupment fee payable to SBA by Borrower. |
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Subpart C--SPECIAL PURPOSE LOANS
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| What assistance is available for the disabled? |
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| DAL-1 use of proceeds and other program conditions. |
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| DAL-2 use of proceeds and other program conditions. |
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| Resolving doubts about creditworthiness. |
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| Interest rate and loan limit. |
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| Who is eligible for an energy conservation loan? |
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| What devices or techniques are eligible for a loan? |
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| What are the eligible uses of proceeds? |
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| Are there any special credit criteria? |
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| What is the Export Working Capital Program? |
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| What are eligible uses of proceeds? |
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| Unique requirements of the EWCP. |
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| Which veterans are eligible? |
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| Other conditions of eligibility. |
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| Restrictions on loan processing. |
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| What is the Builders Loan Program? |
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| Are there special application requirements? |
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| What are the eligible uses of proceeds? |
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| What is SBA's collateral position? |
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| What is the term of the loan? |
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| Are there any special restrictions? |
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| America's Recovery Capital (ARC) Loan Program. |
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Subpart D--LENDERS
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| Loan Guarantee Agreements. |
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| Requirements for all participating Lenders. |
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| Other services Lenders may provide Borrowers. |
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| Advertisement of relationship with SBA. |
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| Which Lenders may securitize? |
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| Are all securitizations subject to this subpart? |
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| Which 7(a) loans may a Lender securitize? |
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| What are the basic conditions a Lender must meet to securitize? |
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| What are the minimum elements that SBA will require before consenting to a securitization? |
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| What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period? |
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| Will SBA approve a securitization application from a capital impaired Securitizer? |
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| What happens to a securitizer's other PLP responsibilities if SBA suspends its PLP approval privilege? |
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| What conveyances are covered by 120.430 through 120.435? |
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| Which Lenders may sell, sell participations in, or pledge 7(a) loans? |
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| Under what circumstances does this subpart permit sales of, or sales of participating interests in, 7(a) loans? |
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| What are SBA's other requirements for sales and sales of participating interests? |
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| What are SBA's requirements for loan pledges? |
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| Which loan pledges do not require notice to or consent by SBA? |
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| The Certified Lenders Program. |
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| How does a Lender become a CLP Lender? |
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| What is the Preferred Lenders Program? |
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| How does a Lender become a PLP Lender? |
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| What are the requirements of PLP loan processing? |
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| Responsibilities of PLP Lenders for servicing and liquidating 7(a) loans. |
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| What are SBA's additional requirements for SBA Supervised Lenders? |
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| What are SBA's additional requirements for SBA Supervised Lenders concerning records? |
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| What are SBA's additional requirements on capital maintenance for SBA Supervised Lenders? |
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| Regulatory accounting--What are SBA's regulatory accounting requirements for SBA Supervised Lenders? |
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| Civil penalty for late submission of required reports. |
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| What are SBA's additional requirements for SBLCs? |
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| What are the minimum capital requirements for SBLCs? |
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| Higher individual minimum capital requirement. |
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| Procedures for determining individual minimum capital requirement. |
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| Relation to other actions. |
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| Change of ownership or control. |
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Subpart E--SERVICING, LIQUIDATION AND DEBT COLLECTION LITIGATION OF 7(A) AND 504 LOANS
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| Purchase of 7(a) loan guarantees. |
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| What interest rate applies after SBA purchases its guaranteed portion? |
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| Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion. |
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| What is the ''earliest uncured payment default''? |
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| When is SBA released from liability on its guarantee? |
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| What is a loan Moratorium? |
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| Standards for Lender and CDC loan servicing, loan liquidation and debt collection litigation. |
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| Servicing and liquidation actions that require the prior written consent of SBA. |
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| Liquidation and litigation plans. |
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| Time for approval by SBA. |
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| Payment by SBA of legal fees and other expenses. |
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| 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? |
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| What is homestead protection for farmers? |
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| Who is eligible for homestead protection? |
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Subpart F--SECONDARY MARKET
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| Form and terms of Certificates. |
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| Pools backing Pool Certificates. |
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| Loans eligible to back Certificates. |
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| Secondary Participation Guarantee Agreement. |
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| SBA guarantee of a Pool Certificate. |
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| SBA guarantee of an Individual Certificate. |
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| Qualifications to be a Pool Assembler. |
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| Suspension or termination of Pool Assembler. |
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| Administration of the Pool and Individual Certificates. |
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| Disclosure to purchasers. |
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| Requirements before the FTA issues Pool Certificates. |
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| Requirements before the FTA issues Individual Certificates. |
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| Transfers of Certificates. |
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| Redemption of Certificates. |
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| Registration duties of FTA in Secondary Market. |
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| Claim to FTA by Registered Holder to replace Certificate. |
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| Suspension or revocation. |
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Subpart G--MICROLOAN PROGRAM
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| What is the Microloan Program? |
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| Are there limitations on who can be an Intermediary or on where an Intermediary may operate? |
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| How does an organization apply to become an Intermediary? |
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| How are applications evaluated? |
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| What is a Specialized Intermediary? |
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| What are the terms and conditions of an SBA loan to an Intermediary? |
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| What conditions apply to loans by Intermediaries to Microloan borrowers? |
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| What is the Intermediary's financial contribution? |
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| What is the Microloan Revolving Fund? |
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| What is the Loan Loss Reserve Fund? |
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| What rules govern Intermediaries? |
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| How does an Intermediary get a grant to assist Microloan borrowers? |
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| Does SBA provide technical assistance to Intermediaries? |
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| How are grants made to non-lending technical assistance providers (NTAP)? |
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| Does SBA guarantee any loans an Intermediary obtains from another source? |
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Subpart H--DEVELOPMENT COMPANY LOAN PROGRAM (504)
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| The purpose of the 504 program. |
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| How a 504 Project is financed. |
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| Applications for certification as a CDC. |
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| Probationary period for newly certified CDCs. |
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| CDC non-profit status and good standing. |
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| Professional management and staff. |
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| Financial ability to operate. |
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| Basic requirements for operating a CDC. |
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| Other services a CDC may provide to small businesses. |
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| Minimum level of 504 loan activity and restrictions on portfolio concentrations. |
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| Job Opportunity average a CDC must maintain. |
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| Reports a CDC must submit. |
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| Application to expand an Area of Operations. |
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| SBA decision on application for a new CDC or for an existing CDC to expand Area of Operations. |
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| Case-by-case application to make a 504 loan outside of a CDC's Area of Operations. |
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| Accredited Lenders Program (ALP). |
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| Qualifications for the ALP. |
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| Premier Certified Lenders Program (PCLP). |
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| Requirements for maintaining and renewing PCLP status. |
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| Requirements for the Loan Loss Reserve Fund (LLRF). |
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| Requirements for 504 loan processing, closing, servicing, liquidating, and litigating by PCLP CDCs. |
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| Expiration of Associate Development Company designation. |
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| CDC ethical requirements. |
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| Restrictions regarding CDC participation in the Small Business Investment Company (SBIC) program and the 7(a) loan program. |
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| Inspector General audits of CDCs. |
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| Voluntary transfer and surrender of CDC certification. |
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| Job creation or retention. |
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| Other economic development objectives. |
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| Leasing Project Property. |
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| Leasing part of Project Property to another business. |
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| Basic eligibility requirements. |
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| Ineligible Projects for 504 loans. |
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| Eligible Project costs for 504 loans. |
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| Eligible administrative costs for 504 loans. |
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| Ineligible costs for 504 loans. |
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| Source of interim financing. |
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| Certifications of disbursement and completion. |
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| Certifications of no adverse change. |
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| Sources of permanent financing. |
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| Limitations on any contributions by a Licensee. |
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| Required participation by the Third Party Lender. |
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| Terms of Third Party loans. |
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| Pre-existing debt on the Project Property. |
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| Policies on subordination. |
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| Deposit from the Borrower that a CDC may require. |
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| Prepayment of the 504 loan or Debenture. |
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| SBA and CDC must appoint agents. |
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| Suspension or revocation of brokers and dealers. |
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| Responsibility for closing. |
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| Construction escrow accounts. |
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| Servicing of 504 loans and Debentures. |
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| Allowable fees paid by Borrower. |
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| Third Party Lender participation fee and CDC fee. |
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| CDC Liquidation of loans and debt collection litigation. |
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Subpart I--RISK-BASED LENDER OVERSIGHT
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| Risk-Based Lender Oversight. |
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| Bureau of PCLP Oversight. |
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| SBA access to SBA Lender, Intermediary, and NTAP files. |
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| Off-site reviews and monitoring. |
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| On-site reviews and examinations. |
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| Frequency of on-site reviews and examinations. |
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| Review and examination results. |
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| Confidentiality of Reports, Risk Ratings and related Confidential Information. |
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| Grounds for enforcement actions--SBA Lenders. |
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| Grounds for enforcement actions--Intermediaries participating in the Microloan Program and NTAPs. |
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| Types of enforcement actions--SBA Lenders. |
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| Certification and other reporting and notification requirements for Other Regulated SBLCs. |
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| Types of enforcement actions--Intermediaries participating in the Microloan Program and NTAPs. |
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| General procedures for enforcement actions against SBA Lenders, SBA Supervised Lenders, Other Regulated SBLCs, Management Officials, Other Persons, Intermediaries, and NTAPs. |
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Subpart J--ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE PROGRAM FOR FIRST LIEN POSITION 504 LOAN POOLS
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| Definitions used in subpart J. |
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| Qualifications to be a Pool Originator. |
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| Pool Loans eligible for Pooling. |
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| Pool formation requirements. |
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| Pool Originator's retained interest in Pool. |
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| Seller's retained Loan Interest. |
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| Transfers of Pool Certificates. |
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| Central servicing of the Program. |
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| Suspension or termination of Program participation privileges. |
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| Seller responsibilities with respect to Seller's Pool Loan. |
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| Seller's Pool Loan origination. |
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| Seller's Pool Loan servicing. |
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| Seller's Pool Loan liquidation. |
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| Required SBA approval of servicing actions. |
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| Seller's Pool Loan deferments. |
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| SBA's right to assume Seller's responsibilities. |
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| SBA's right to recover from Seller. |
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| SBA's right to review Pool Loan documents. |
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| SBA's right to investigate. |
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| Pool Loan receivables received by Seller. |
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| Servicing and liquidation expenses. |
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| No Program Preference by Seller or Pool Originator. |
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| Pool Certificates a Seller cannot purchase. |
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Subpart K--ESTABLISHMENT OF AN SBA DIRECT LOAN PROGRAM FOR SYSTEMICALLY IMPORTANT SECONDARY MARKET BROKER-DEALERS (SISMBD LOAN PROGRAM)
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| Definitions used in subpart K. |
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| How does a broker-dealer participate in the SISMBD Loan Program? |
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| What is a Systemically Important SBA Secondary Market Broker-Dealer (SISMBD)? |
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| What are the basic eligibility requirements for SBA designation as a Systemically Important Secondary Market Broker-Dealer? |
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| What is the process to obtain designation as a Systemically Important Secondary Market Broker-Dealer? |
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| What is the process to apply for an SISMBD Loan? |
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| How will an SISMBD receive notice of an approval or denial of a loan or request for an advance under an SISMBD Loan? |
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| May an SISMBD request reconsideration after denial? |
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| What are the terms and conditions of an SBA loan to an SISMBD? |
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| Is there a limit to the number of SISMBD Loans or advances that an SISMBD may request from SBA? |
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| What is the minimum and maximum SISMBD Loan advance amount? |
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| May an SISMBD request an increase in the loan amount? |
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| What fees are associated with an SISMBD Loan? |
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| What are the allowable uses of proceeds of an SISMBD Loan? |
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| Will the Collateral be held by SBA? |
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| How will the SISMBD Loan be disbursed? |
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| How does the SISMBD provide funds for the Premium? |
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| How will the loan be repaid? |
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| How are payments on the Collateral allocated between the SISMBD borrower and repayment of the SISMBD Loan? |
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| What happens if funds to make required loan payments are not generated from the Collateral? |
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| What is the maturity on a SISMBD Loan from SBA? |
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| What happens if an SISMBD is ineligible to receive an SISMBD Loan or an advance? |
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| What happens if an SISMBD does not use SISMBD Loan funds for a statutorily mandated purpose? |
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| Data collections and reporting. |
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| When does the Secondary Market Lending Authority Program end? |
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