2005 CFR Title 13, Volume 1

Title 13--Business Credit and Assistance CHAPTER I--SMALL BUSINESS ADMINISTRATION PART 120--BUSINESS LOANS
	120.1	Which loan programs does this part cover?
	120.2	Descriptions of the business loan programs.
	120.3	Pilot programs.
	120.10	Definitions.
	120.100	What are the basic eligibility requirements for all applicants for SBA business loans?
	120.101	Credit not available elsewhere.
	120.102	Funds not available from alternative sources, including personal resources of principals.
	120.103	Are farm enterprises eligible?
	120.104	Are businesses financed by SBICs eligible?
	120.105	Special consideration for veterans.
	120.110	What businesses are ineligible for SBA business loans?
	120.111	What conditions must an Eligible Passive Company satisfy?
	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.
	120.140	What ethical requirements apply to participants?
	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.
	120.170	Flood insurance.
	120.171	Compliance with child support obligations.
	120.172	Flood-plain and wetlands management.
	120.173	Lead-based paint.
	120.174	Earthquake hazards.
	120.175	Coastal barrier islands.
	120.176	Compliance with other laws.
	120.180	Are rules enforceable if they are changed later?
	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.
	120.194	Use of computer forms.
	120.195	Disclosure of fees.
	120.200	What bonding requirements exist during construction?
	120.201	Refinancing unsecured or undersecured loans.
	120.202	Restrictions on loans for changes in ownership.
	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?
	120.215	What interest rates apply to smaller loans?
	120.220	Fees that Lender pays SBA.
	120.221	Fees which the Lender may collect from a loan applicant.
	120.222	Fees which the Lender or Associate may not collect from the Borrower or share with third parties.
	120.223	Subsidy recoupment fee payable to SBA by Borrower.
	120.300	Statutory authority.
	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.
	120.320	Policy.
	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?
	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.
	120.345	Policy.
	120.346	Eligibility.
	120.347	Use of proceeds.
	120.348	Amount of guarantee.
	120.350	Policy.
	120.351	Definitions.
	120.352	Use of proceeds.
	120.353	Eligibility.
	120.354	Creditworthiness.
	120.360	Which veterans are eligible?
	120.361	Other conditions of eligibility.
	120.370	Policy.
	120.375	Policy.
	120.376	Special requirements.
	120.377	Use of proceeds.
	120.380	Program.
	120.381	Eligibility.
	120.382	Repayment ability.
	120.383	Restrictions on loan processing.
	120.390	Revolving credit.
	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?
	120.400	Loan Guarantee Agreements.
	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.
	120.414	SBA access to Lender files.
	120.415	Suspension or revocation of eligibility to participate.
	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?
	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?
	120.440	What is the Certified Lenders Program?
	120.441	How does a Lender become a CLP Lender?
	120.442	Suspension or revocation of CLP status.
	120.450	What is the Preferred Lenders Program?
	120.451	How does a Lender become a PLP Lender?
	120.452	What are the requirements of PLP loan processing?
	120.453	What are the requirements of a PLP Lender in servicing and liquidating SBA guaranteed loans?
	120.454	PLP performance review.
	120.455	Suspension or revocation of PLP status.
	120.470	What is an SBLC?
	120.471	Records.
	120.472	Reports to SBA.
	120.473	Change of ownership or control.
	120.474	Prohibited financing.
	120.475	Audits.
	120.476	Suspension or revocation.
	120.500	General.
	120.510	Servicing direct and immediate participation loans.
	120.511	Servicing guaranteed loans.
	120.512	Who services the loan after SBA honors its guarantee?
	120.513	What servicing actions require the prior written consent of SBA?
	120.520	When does SBA honor its guarantee?
	120.521	What interest rate applies after SBA purchases its guaranteed portion?
	120.522	How much accrued interest does SBA pay 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.
	120.532	What is a loan Moratorium?
	120.540	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?
	120.550	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.
	120.600	Definitions.
	120.601	SBA Secondary Market.
	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.
	120.620	SBA guarantee of a Pool Certificate.
	120.621	SBA guarantee of an Individual Certificate.
	120.630	Qualifications to be a Pool Assembler.
	120.631	Suspension or termination of Pool Assembler.
	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.
	120.660	Suspension or revocation.
	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	How are grants made to non-lending technical assistance providers (NTAP)?
	120.715	Does SBA guarantee any loans an Intermediary obtains from another source?
	120.716	Suspension or revocation of an Intermediary or NTAP.
	120.800	The purpose of the 504 program.
	120.801	How a 504 Project is financed.
	120.802	Definitions.
	120.810	Applications for certification as a CDC.
	120.812	Probationary period for newly certified CDCs.
	120.820	CDC non-profit status and good standing.
	120.821	CDC Area of Operations.
	120.822	CDC membership.
	120.823	CDC Board of Directors.
	120.824	Professional management and staff.
	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.
	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.
	120.840	Accredited Lenders Program (ALP).
	120.841	Qualifications for the ALP.
	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.
	120.850	Expiration of Associate Development Company designation.
	120.851	CDC ethical requirements.
	120.852	Restrictions regarding CDC participation in the Small Business Investment Company (SBIC) program and the 7(a) loan program.
	120.853	Oversight and evaluation of CDCs.
	120.854	Grounds for taking enforcement action against a CDC.
	120.855	Types of enforcement actions.
	120.856	Enforcement procedures.
	120.857	Voluntary transfer and surrender of CDC certification.
	120.860	Required objectives.
	120.861	Job creation or retention.
	120.862	Other economic development objectives.
	120.870	Leasing Project Property.
	120.871	Leasing part of Project Property to another business.
	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.
	120.890	Source of interim financing.
	120.891	Certifications of disbursement and completion.
	120.892	Certifications of no adverse change.
	120.900	Sources of permanent financing.
	120.910	Borrower contributions.
	120.911	Land contributions.
	120.912	Borrowed contributions.
	120.913	Limitations on any contributions by a Licensee.
	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	Preferences.
	120.926	Referral fee.
	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.
	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.
	120.960	Responsibility for closing.
	120.961	Construction escrow accounts.
	120.970	Servicing of 504 loans and Debentures.
	120.971	Allowable fees paid by Borrower.
	120.972	Third Party Lender participation fee and CDC fee.
	120.990	501, 502 and 503 loans.
	120.991	Effect of other laws.