Part 120 — Business Loans
Subpart A — Policies Applying to All Business Loans
- § 120.100— What are the basic eligibility requirements for all applicants for SBA business loans?
- § 120.101— Credit not available elsewhere.
- § 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.
- § 120.174— Earthquake hazards.
- § 120.175— Coastal barrier islands.
- § 120.176— Compliance with other laws.
- § 120.180— Compliance with Loan Program Requirements.
- § 120.181— Status of Lenders and CDCs.
- § 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.
- § 120.195— Disclosure of fees.
- § 120.197— Notifying SBA's Office of Inspector General of suspected fraud.
Subpart B — Policies Specific to 7(a) Loans
- § 120.200— What bonding requirements exist during construction?
- § 120.201— Refinancing unsecured or undersecured loans.
- § 120.202— Loans for changes of 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?
- § 120.220— 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.
- § 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.
- § 120.349— Collateral.
- § 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.
- § 120.375— Policy.
- § 120.376— Special requirements.
- § 120.377— Use of proceeds.
- § 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?
- § 120.398— America's Recovery Capital (ARC) Loan Program.
Subpart D — Lenders
- § 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.
- § 120.420— 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— How does a 7(a) Lender obtain delegated authority?
- § 120.450— What is the Preferred Lenders Program?
- § 120.452— What are the requirements of PLP loan processing?
- § 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.
- § 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.
- § 120.476— Prohibited financing.
- § 120.490— Audits.
Subpart E — Servicing, Liquidation and Debt Collection Litigation of 7(a) and 504 Loans
- § 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.
- § 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
- § 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.
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?
- § 120.716— What is the minimum number of loans an Intermediary must make each Federal fiscal year?
Subpart H — Development Company Loan Program (504)
- § 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.
- § 120.816— 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.
- § 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.
- § 120.842— ALP Express Loans.
- § 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.
- § 120.851— CDC ethical requirements.
- § 120.853— Inspector General audits of CDCs.
- § 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.
- § 120.926— 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.
- § 120.975— CDC Liquidation of loans and debt collection litigation.
- § 120.990— 501, 502 and 503 loans.
- § 120.991— Effect of other laws.
Subpart I — Risk-Based Lender Oversight
- § 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.
- § 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.