13 CFR Part 120
PART 120—BUSINESS LOANS
- PART 120—BUSINESS LOANS
- Chapter I—Small Business Administration
- General Descriptions of SBA's Business Loan Programs
- § 120.1 Which loan programs does this part cover?
- § 120.2 Descriptions of the business loan programs.
- § 120.3 Pilot programs.
- § 120.4 Severability.
- Definitions
- § 120.10 Definitions.
- Subpart A—Policies Applying to All Business Loans
- Eligibility Requirements
- § 120.100 What are the basic eligibility requirements for all applicants for SBA business loans?
- § 120.101 Credit not available elsewhere.
- § 120.102 [Reserved]
- § 120.104 Are businesses financed by SBICs eligible?
- § 120.105 Special consideration for veterans.
- Ineligible Businesses and Eligible Passive Companies
- § 120.110 What businesses are ineligible for SBA business loans?
- § 120.111 What conditions must an Eligible Passive Company satisfy?
- Uses of Proceeds
- § 120.120 What are eligible uses of proceeds?
- § 120.130 Restrictions on uses of proceeds.
- § 120.131 Leasing part of new construction or existing building to another business.
- Ethical Requirements
- § 120.140 What ethical requirements apply to participants?
- Credit Criteria for SBA Loans
- § 120.150 What are SBA's lending criteria?
- § 120.151 What is the statutory limit for total loans to a Borrower?
- § 120.160 Loan conditions.
- Requirements Imposed Under Other Laws and Orders
- § 120.170 Flood insurance.
- § 120.171 Compliance with child support obligations.
- § 120.172 Flood-plain and wetlands management.
- § 120.174 Earthquake hazards.
- § 120.175 Coastal barrier islands.
- § 120.176 Compliance with other laws.
- Applicability and Enforceability of Loan Program Requirements
- § 120.180 Compliance with Loan Program Requirements.
- § 120.181 Status of Lenders and CDCs.
- Loan Applications
- § 120.190 Where does an applicant apply for a loan?
- § 120.191 The contents of a business loan application.
- § 120.192 Approval or denial.
- § 120.193 Reconsideration after denial.
- Computerized SBA Forms
- § 120.194 [Reserved]
- Reporting
- § 120.195 Disclosure of fees.
- § 120.197 Notifying SBA's Office of Inspector General of suspected fraud.
- Subpart B—Policies Specific to 7(a) Loans
- Bonding Requirements
- § 120.200 What bonding requirements exist during construction?
- Limitations on Use of Proceeds
- § 120.201 Refinancing unsecured or undersecured loans.
- § 120.202 Loans for changes of ownership.
- Maturities; Interest Rates; Loan and Guarantee Amounts
- § 120.210 What percentage of a loan may SBA guarantee?
- § 120.211 What limits are there on the amounts of direct loans?
- § 120.212 What limits are there on loan maturities?
- § 120.213 What fixed interest rates may a Lender charge?
- § 120.214 What conditions apply for variable interest rates?
- Fees for Guaranteed Loans
- § 120.220 Fees that Lender pays SBA.
- § 120.221 Fees and expenses that the Lender may collect from a loan applicant or Borrower.
- § 120.222 Prohibition on sharing premiums for secondary market sales.
- § 120.223 Subsidy recoupment fee payable to SBA by Borrower.
- Subpart C—Special Purpose Loans
- § 120.300 Statutory authority.
- Disabled Assistance Loan Program (DAL)
- § 120.310 What assistance is available for the disabled?
- § 120.311 Definitions.
- § 120.312 DAL-1 use of proceeds and other program conditions.
- § 120.313 DAL-2 use of proceeds and other program conditions.
- § 120.314 Resolving doubts about creditworthiness.
- § 120.315 Interest rate and loan limit.
- Businesses Owned by Low Income Individuals
- § 120.320 Policy.
- Energy Conservation
- § 120.330 Who is eligible for an energy conservation loan?
- § 120.331 What devices or techniques are eligible for a loan?
- § 120.332 What are the eligible uses of proceeds?
- § 120.333 Are there any special credit criteria?
- Export Working Capital Program (EWCP)
- § 120.340 What is the Export Working Capital Program?
- § 120.341 Who is eligible?
- § 120.342 What are eligible uses of proceeds?
- § 120.343 Collateral.
- § 120.344 Unique requirements of the EWCP.
- International Trade Loans
- § 120.345 Policy.
- § 120.346 Eligibility.
- § 120.347 Use of proceeds.
- § 120.348 Amount of guarantee.
- § 120.349 Collateral.
- Qualified Employee Trusts (ESOP)
- § 120.350 Policy.
- § 120.351 Definitions.
- § 120.352 Use of proceeds.
- § 120.353 Eligibility.
- § 120.354 Creditworthiness.
- Veterans Loan Program
- § 120.360 Which veterans are eligible?
- § 120.361 Other conditions of eligibility.
- Loans to Participants in the 8(a) Program
- § 120.375 Policy.
- § 120.376 Special requirements.
- § 120.377 Use of proceeds.
- CapLines Program
- § 120.390 Revolving credit.
- Builders Loan Program
- § 120.391 What is the Builders Loan Program?
- § 120.392 Who may apply?
- § 120.393 Are there special application requirements?
- § 120.394 What are the eligible uses of proceeds?
- § 120.395 What is SBA's collateral position?
- § 120.396 What is the term of the loan?
- § 120.397 Are there any special restrictions?
- America's Recovery Capital (Business Stabilization) Loan Program—ARC Loan Program
- § 120.398 America's Recovery Capital (ARC) Loan Program.
- Subpart D—Lenders
- § 120.400 Loan Guarantee Agreements.
- Participation Criteria
- § 120.410 Requirements for all participating Lenders.
- § 120.411 Preferences.
- § 120.412 Other services Lenders may provide Borrowers.
- § 120.413 Advertisement of relationship with SBA.
- Participating Lender Financings
- § 120.420 Definitions.
- § 120.421 Which Lenders may securitize?
- § 120.422 Are all securitizations subject to this subpart?
- § 120.423 Which 7(a) loans may a Lender securitize?
- § 120.424 What are the basic conditions a Lender must meet to securitize?
- § 120.425 What are the minimum elements that SBA will require before consenting to a securitization?
- § 120.426 What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period?
- § 120.427 Will SBA approve a securitization application from a capital impaired Securitizer?
- § 120.428 What happens to a securitizer's other PLP responsibilities if SBA suspends its PLP approval privilege?
- Other Conveyances
- § 120.430 What conveyances are covered by §§ 120.430 through 120.435?
- § 120.431 Which Lenders may sell, sell participations in, or pledge 7(a) loans?
- § 120.432 Under what circumstances does this subpart permit sales of, or sales of participating interests in, 7(a) loans?
- § 120.433 What are SBA's other requirements for sales and sales of participating interests?
- § 120.434 What are SBA's requirements for loan pledges?
- § 120.435 Which loan pledges do not require notice to or consent by SBA?
- Delegated Authority Criteria
- § 120.440 How does a 7(a) Lender obtain delegated authority?
- § 120.441-§ 120.447 [Reserved]
- Preferred Lenders Program (PLP)
- § 120.450 What is the Preferred Lenders Program?
- § 120.451 [Reserved]
- § 120.452 What are the requirements of PLP loan processing?
- SBA Supervised Lenders
- § 120.460 What are SBA's additional requirements for SBA Supervised Lenders?
- § 120.461 What are SBA's additional requirements for SBA Supervised Lenders concerning records?
- § 120.462 What are SBA's additional requirements on capital maintenance for SBA Supervised Lenders?
- § 120.463 Regulatory accounting—What are SBA's regulatory accounting requirements for SBA Supervised Lenders?
- § 120.464 Reports to SBA.
- § 120.465 Civil penalty for late submission of required reports.
- § 120.466 SBA Supervised Lender application.
- § 120.467 Evaluation of SBA Supervised Lender applicants.
- § 120.468 Change of ownership or control requirements for SBA Supervised Lenders.
- Small Business Lending Companies (SBLC)
- § 120.470 What are SBA's additional requirements for SBLCs?
- § 120.471 What are the minimum capital requirements for SBLCs?
- § 120.472 Higher individual minimum capital requirement.
- § 120.473 Procedures for determining individual minimum capital requirement.
- § 120.474 Relation to other actions.
- § 120.475 [Reserved]
- § 120.476 Prohibited financing.
- § 120.490 Audits.
- Subpart E—Servicing, Liquidation and Debt Collection Litigation of 7(a) and 504 Loans
- SBA'S Purchase of a Guaranteed Portion
- § 120.520 Purchase of 7(a) loan guarantees.
- § 120.521 What interest rate applies after SBA purchases its guaranteed portion?
- § 120.522 Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion.
- § 120.523 What is the “earliest uncured payment default”?
- § 120.524 When is SBA released from liability on its guarantee?
- § 120.530 Deferment of payment.
- § 120.531 Extension of maturity.
- § 120.535 Standards for Lender and CDC loan servicing, loan liquidation and debt collection litigation.
- § 120.536 Servicing and liquidation actions that require the prior written consent of SBA.
- § 120.540 Liquidation and litigation plans.
- § 120.541 Time for approval by SBA.
- § 120.542 Payment by SBA of legal fees and other expenses.
- § 120.545 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?
- § 120.546 Loan asset sales.
- Homestead Protection for Farmers
- § 120.550 What is homestead protection for farmers?
- § 120.551 Who is eligible for homestead protection?
- § 120.552 Lease.
- § 120.553 Appeal.
- § 120.554 Conflict of laws.
- Subpart F—Secondary Market
- Fiscal and Transfer Agent (FTA)
- § 120.600 Definitions.
- § 120.601 SBA Secondary Market.
- Certificates
- § 120.610 Form and terms of Certificates.
- § 120.611 Pools backing Pool Certificates.
- § 120.612 Loans eligible to back Certificates.
- § 120.613 Secondary Participation Guarantee Agreement.
- The SBA Guarantee of a Certificate
- § 120.620 SBA guarantee of a Pool Certificate.
- § 120.621 SBA guarantee of an Individual Certificate.
- Pool Assemblers
- § 120.630 Qualifications to be a Pool Assembler.
- § 120.631 Suspension or termination of Pool Assembler.
- Miscellaneous Provisions
- § 120.640 Administration of the Pool and Individual Certificates.
- § 120.641 Disclosure to purchasers.
- § 120.642 Requirements before the FTA issues Pool Certificates.
- § 120.643 Requirements before the FTA issues Individual Certificates.
- § 120.644 Transfers of Certificates.
- § 120.645 Redemption of Certificates.
- § 120.650 Registration duties of FTA in Secondary Market.
- § 120.651 Claim to FTA by Registered Holder to replace Certificate.
- § 120.652 FTA fees.
- Suspension or Revocation of Participant in Secondary Market
- § 120.660 Suspension or revocation.
- Subpart G—Microloan Program
- § 120.700 What is the Microloan Program?
- § 120.701 Definitions.
- § 120.702 Are there limitations on who can be an Intermediary or on where an Intermediary may operate?
- § 120.703 How does an organization apply to become an Intermediary?
- § 120.704 How are applications evaluated?
- § 120.705 What is a Specialized Intermediary?
- § 120.706 What are the terms and conditions of an SBA loan to an Intermediary?
- § 120.707 What conditions apply to loans by Intermediaries to Microloan borrowers?
- § 120.708 What is the Intermediary's financial contribution?
- § 120.709 What is the Microloan Revolving Fund?
- § 120.710 What is the Loan Loss Reserve Fund?
- § 120.711 What rules govern Intermediaries?
- § 120.712 How does an Intermediary get a grant to assist Microloan borrowers?
- § 120.713 Does SBA provide technical assistance to Intermediaries?
- §§ 120.714-120.715 [Reserved]
- § 120.716 What is the minimum number of loans an Intermediary must make each Federal fiscal year?
- Subpart H—Development Company Loan Program (504)
- § 120.800 [Reserved]
- § 120.801 How a 504 Project is financed.
- § 120.802 Definitions.
- Certification Procedures To Become a CDC
- § 120.810 Applications for certification as a CDC.
- § 120.812 Probationary period for newly certified CDCs.
- Requirements for CDC Certification and Operation
- § 120.816 CDC non-profit status and good standing.
- § 120.818 Applicability to existing for-profit CDCs.
- § 120.820 CDC Affiliation.
- § 120.821 CDC Area of Operations.
- § 120.823 CDC Board of Directors.
- § 120.824 Professional management and staff, and contracts for services.
- § 120.825 Financial ability to operate.
- § 120.826 Basic requirements for operating a CDC.
- § 120.827 Other services a CDC may provide to small businesses.
- § 120.828 Minimum level of 504 loan activity and restrictions on portfolio concentrations.
- § 120.829 Job Opportunity average a CDC must maintain.
- § 120.830 Reports a CDC must submit.
- Extending a CDC'S Area of Operations
- § 120.835 Application to expand an Area of Operations.
- § 120.837 SBA decision on application for a new CDC or for an existing CDC to expand Area of Operations.
- § 120.839 Case-by-case application to make a 504 loan outside of a CDC's Area of Operations.
- Accredited Lenders Program (ALP)
- § 120.840 Accredited Lenders Program (ALP).
- § 120.841 Qualifications for the ALP.
- § 120.842 ALP Express Loans.
- Premier Certified Lenders Program
- § 120.845 Premier Certified Lenders Program (PCLP).
- § 120.846 Requirements for maintaining and renewing PCLP status.
- § 120.847 Requirements for the Loan Loss Reserve Fund (LLRF).
- § 120.848 Requirements for 504 loan processing, closing, servicing, liquidating, and litigating by PCLP CDCs.
- Other CDC Requirements
- § 120.851 CDC ethical requirements.
- § 120.852 [Reserved]
- § 120.853 Inspector General audits of CDCs.
- § 120.857 Voluntary transfer and surrender of CDC certification.
- Project Economic Development Goals
- § 120.860 Required objectives.
- § 120.861 Job creation or retention.
- § 120.862 Other economic development objectives.
- Leasing Policies Specific to 504 Loans
- § 120.870 Leasing Project Property.
- § 120.871 Leasing part of Project Property to another business.
- Loan-Making Policies Specific to 504 Loans
- § 120.880 Basic eligibility requirements.
- § 120.881 Ineligible Projects for 504 loans.
- § 120.882 Eligible Project costs for 504 loans.
- § 120.883 Eligible administrative costs for 504 loans.
- § 120.884 Ineligible costs for 504 loans.
- Interim Financing
- § 120.890 Source of interim financing.
- § 120.891 Certifications of disbursement and completion.
- § 120.892 Certifications of no adverse change.
- Permanent Financing
- § 120.900 Sources of permanent financing.
- The Borrower's Contribution
- § 120.910 Borrower contributions.
- § 120.911 Land contributions.
- § 120.912 Borrowed contributions.
- § 120.913 Limitations on any contributions by a Licensee.
- Third Party Loans
- § 120.920 Required participation by the Third Party Lender.
- § 120.921 Terms of Third Party loans.
- § 120.922 Pre-existing debt on the Project Property.
- § 120.923 Policies on subordination.
- § 120.925 [Reserved]
- § 120.926 Referral fee.
- 504 Loans and Debentures
- § 120.930 Amount.
- § 120.931 504 Lending limits.
- § 120.932 Interest rate.
- § 120.933 Maturity.
- § 120.934 Collateral.
- § 120.935 Deposit from the Borrower that a CDC may require.
- § 120.937 Assumption.
- § 120.938 Default.
- § 120.939 Borrower prohibition.
- § 120.940 Prepayment of the 504 loan or Debenture.
- § 120.941 Certificates.
- Debenture Sales and Service Agents
- § 120.950 SBA and CDC must appoint agents.
- § 120.951 Selling agent.
- § 120.952 Fiscal agent.
- § 120.953 Trustee.
- § 120.954 Central Servicing Agent.
- § 120.955 Agent bonds and records.
- § 120.956 Suspension or revocation of brokers and dealers.
- Closings
- § 120.960 Responsibility for closing.
- § 120.961 Construction escrow accounts.
- Servicing
- § 120.970 Servicing of 504 loans and Debentures.
- Fees
- § 120.971 Allowable fees paid by Borrower.
- § 120.972 Third Party Lender participation fee and CDC fee.
- Authority of CDCs To Perform Liquidation and Debt Collection Litigation
- § 120.975 CDC Liquidation of loans and debt collection litigation.
- Enforceability of 501, 502 and 503 Loans and Other Laws
- § 120.990 501, 502 and 503 loans.
- § 120.991 Effect of other laws.
- Subpart I—Risk-Based Lender Oversight
- Supervision
- § 120.1000 Risk-Based Lender Oversight.
- § 120.1005 Bureau of PCLP Oversight.
- § 120.1010 SBA access to SBA Lender and Intermediary files.
- § 120.1015 Risk Rating System.
- § 120.1025 Monitoring.
- § 120.1050 Reviews and examinations.
- § 120.1051 Frequency of reviews and examinations.
- § 120.1055 Review and examination results.
- § 120.1060 Confidentiality of Reports, Risk Ratings and related Confidential Information.
- § 120.1070 SBA Lender oversight fees.
- Enforcement Actions
- § 120.1300 Informal enforcement actions—7(a) Lenders.
- § 120.1400 Grounds for enforcement actions—SBA Lenders.
- § 120.1425 Grounds for formal enforcement actions—Intermediaries participating in the Microloan Program.
- § 120.1500 Types of formal enforcement actions—SBA Lenders.
- § 120.1510 Other Regulated SBLCs.
- § 120.1511 Certification and other reporting and notification requirements for Other Regulated SBLCs.
- § 120.1540 Types of formal enforcement actions—Intermediaries participating in the Microloan Program.
- § 120.1600 General procedures for formal enforcement actions against SBA Lenders, SBA Supervised Lenders, Other Regulated SBLCs, Management Officials, Other Persons, and Intermediaries.
- Subpart J—Establishment of SBA Secondary Market Guarantee Program for First Lien Position 504 Loan Pools
- § 120.1700 Definitions used in subpart J.
- § 120.1701 Program purpose.
- § 120.1702 Program fee.
- § 120.1703 Qualifications to be a Pool Originator.
- § 120.1704 Pool Loans eligible for Pooling.
- § 120.1705 Pool formation requirements.
- § 120.1706 Pool Originator's retained interest in Pool.
- § 120.1707 Seller's retained Loan Interest.
- § 120.1708 Pool Certificates.
- § 120.1709 Transfers of Pool Certificates.
- § 120.1710 Central servicing of the Program.
- § 120.1711 Suspension or termination of Program participation privileges.
- § 120.1712 Seller responsibilities with respect to Seller's Pool Loan.
- § 120.1713 Seller's Pool Loan origination.
- § 120.1714 Seller's Pool Loan servicing.
- § 120.1715 Seller's Pool Loan liquidation.
- § 120.1716 Required SBA approval of servicing actions.
- § 120.1717 Seller's Pool Loan deferments.
- § 120.1718 SBA's right to assume Seller's responsibilities.
- § 120.1719 SBA's right to recover from Seller.
- § 120.1720 SBA's right to review Pool Loan documents.
- § 120.1721 SBA's right to investigate.
- § 120.1722 SBA's offset rights.
- § 120.1723 Pool Loan receivables received by Seller.
- § 120.1724 Servicing and liquidation expenses.
- § 120.1725 No Program Preference by Seller or Pool Originator.
- § 120.1726 Pool Certificates a Seller cannot purchase.
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