§§ 119.2–119.20 13 CFR Ch. I (1–1–21 Edition) may be used; advise potential appli- 120.111 What conditions must an Eligible cants regarding the process for obtain- Passive Company satisfy? ing, completing, and submitting an ap- USES OF PROCEEDS plication packet; and provide informa- tion regarding application deadlines 120.120 What are eligible uses of proceeds? 120.130 Restrictions on uses of proceeds. and any additional limitations, special 120.131 Leasing part of new construction or rules, procedures, and restrictions existing building to another business. which SBA may deem advisable. (c) SBA will evaluate applications for ETHICAL REQUIREMENTS PRIME awards in accordance with the 120.140 What ethical requirements apply to stated statutory goals of the program participants? and the specific criteria described in the relevant funding announcement. CREDIT CRITERIA FOR SBA LOANS (d) In administering the PRIME pro- 120.150 What are SBA’s lending criteria? gram, SBA will require recipients to 120.151 What is the statutory limit for total provide reports in accordance with the loans to a Borrower? 120.160 Loan conditions. subject matter areas and schedule iden- tified in the terms and conditions of REQUIREMENTS IMPOSED UNDER OTHER LAWS their awards. In addition, SBA may, as AND ORDERS it deems appropriate, make site visits 120.170 Flood insurance. to recipients’ premises and review all 120.171 Compliance with child support obli- applicable documentation and records. gations. 120.172 Flood-plain and wetlands manage- [85 FR 62951, Oct. 6, 2020] ment. 120.173 Lead-based paint. §§ 119.2–119.20 [Reserved] 120.174 Earthquake hazards. 120.175 Coastal barrier islands. PART 120—BUSINESS LOANS 120.176 Compliance with other laws. APPLICABILITY AND ENFORCEABILITY OF LOAN GENERAL DESCRIPTIONS OF SBA’S BUSINESS PROGRAM REQUIREMENTS LOAN PROGRAMS 120.180 Compliance with Loan Program Re- Sec. quirements. 120.1 Which loan programs does this part 120.181 Status of Lenders and CDCs. cover? 120.2 Descriptions of the business loan pro- LOAN APPLICATIONS grams. 120.190 Where does an applicant apply for a 120.3 Pilot programs. loan? 120.191 The contents of a business loan ap- DEFINITIONS plication. 120.10 Definitions. 120.192 Approval or denial. 120.193 Reconsideration after denial. Subpart A—Policies Applying to All Business Loans COMPUTERIZED SBA FORMS 120.194 [Reserved] ELIGIBILITY REQUIREMENTS REPORTING 120.100 What are the basic eligibility re- quirements for all applicants for SBA 120.195 Disclosure of fees. business loans? 120.197 Notifying SBA’s Office of Inspector 120.101 Credit not available elsewhere. General of suspected fraud. 120.102 Funds not available from alternative sources, including the personal resources Subpart B—Policies Specific to 7(a) Loans of owners. 120.103 Are farm enterprises eligible? BONDING REQUIREMENTS 120.104 Are businesses financed by SBICs el- 120.200 What bonding requirements exist igible? during construction? 120.105 Special consideration for veterans. LIMITATIONS ON USE OF PROCEEDS INELIGIBLE BUSINESSES AND ELIGIBLE PASSIVE 120.201 Refinancing unsecured or under- COMPANIES secured loans. 120.110 What businesses are ineligible for 120.202 Restrictions on loans for changes in SBA business loans? ownership. 246 VerDate Sep<11>2014 14:22 Aug 27, 2021 Jkt 253045 PO 00000 Frm 00256 Fmt 8010 Sfmt 8010 Y:\SGML\253045.XXX 253045 spaschal on DSKJM0X7X2PROD with CFR Small Business Administration Pt. 120 MATURITIES; INTEREST RATES; LOAN AND 120.347 Use of proceeds. GUARANTEE AMOUNTS 120.348 Amount of guarantee. 120.349 Collateral. 120.210 What percentage of a loan may SBA guarantee? QUALIFIED EMPLOYEE TRUSTS (ESOP) 120.211 What limits are there on the amounts of direct loans? 120.350 Policy. 120.212 What limits are there on loan matu- 120.351 Definitions. rities? 120.352 Use of proceeds. 120.213 What fixed interest rates may a 120.353 Eligibility. Lender charge? 120.354 Creditworthiness. 120.214 What conditions apply for variable VETERANS LOAN PROGRAM interest rates? 120.215 What interest rates apply to smaller 120.360 Which veterans are eligible? loans? 120.361 Other conditions of eligibility. FEES FOR GUARANTEED LOANS POLLUTION CONTROL PROGRAM 120.220 Fees that Lender pays SBA. 120.370 Policy. 120.221 Fees and expenses that the Lender LOANS TO PARTICIPANTS IN THE 8(a) PROGRAM may collect from an Applicant or Bor- rower. 120.375 Policy. 120.222 Prohibition on sharing premiums for 120.376 Special requirements. secondary market sales. 120.377 Use of proceeds. 120.223 Subsidy recoupment fee payable to SBA by Borrower. DEFENSE ECONOMIC TRANSITION ASSISTANCE 120.380 Program. Subpart C—Special Purpose Loans 120.381 Eligibility. 120.382 Repayment ability. 120.300 Statutory authority. 120.383 Restrictions on loan processing. DISABLED ASSISTANCE LOAN PROGRAM (DAL) CAPLINES PROGRAM 120.310 What assistance is available for the 120.390 Revolving credit. disabled? 120.311 Definitions. BUILDERS LOAN PROGRAM 120.312 DAL–1 use of proceeds and other pro- 120.391 What is the Builders Loan Program? gram conditions. 120.392 Who may apply? 120.313 DAL–2 use of proceeds and other pro- 120.393 Are there special application re- gram conditions. quirements? 120.314 Resolving doubts about credit- 120.394 What are the eligible uses of pro- worthiness. ceeds? 120.315 Interest rate and loan limit. 120.395 What is SBA’s collateral position? BUSINESSES OWNED BY LOW INCOME 120.396 What is the term of the loan? INDIVIDUALS 120.397 Are there any special restrictions? 120.320 Policy. AMERICA’S RECOVERY CAPITAL (BUSINESS STA- BILIZATION) LOAN PROGRAM—ARC LOAN ENERGY CONSERVATION PROGRAM 120.330 Who is eligible for an energy con- 120.398 America’s Recovery Capital (ARC) servation loan? Loan Program. 120.331 What devices or techniques are eligi- ble for a loan? Subpart D—Lenders 120.332 What are the eligible uses of pro- ceeds? 120.400 Loan Guarantee Agreements. 120.333 Are there any special credit criteria? PARTICIPATION CRITERIA EXPORT WORKING CAPITAL PROGRAM (EWCP) 120.410 Requirements for all participating 120.340 What is the Export Working Capital Lenders. Program? 120.411 Preferences. 120.341 Who is eligible? 120.412 Other services Lenders may provide 120.342 What are eligible uses of proceeds? Borrowers. 120.343 Collateral. 120.413 Advertisement of relationship with 120.344 Unique requirements of the EWCP. SBA. INTERNATIONAL TRADE LOANS PARTICIPATING LENDER FINANCINGS 120.345 Policy. 120.420 Definitions. 120.346 Eligibility. 120.421 Which Lenders may securitize? 247 VerDate Sep<11>2014 14:22 Aug 27, 2021 Jkt 253045 PO 00000 Frm 00257 Fmt 8010 Sfmt 8010 Y:\SGML\253045.XXX 253045 spaschal on DSKJM0X7X2PROD with CFR Pt. 120 13 CFR Ch. I (1–1–21 Edition) 120.422 Are all securitizations subject to SBA SUPERVISED LENDERS this subpart? 120.460 What are SBA’s additional require- 120.423 Which 7(a) loans may a Lender ments for SBA Supervised Lenders? securitize? 120.424 What are the basic conditions a 120.461 What are SBA’s additional require- Lender must meet to securitize? ments for SBA Supervised Lenders con- 120.425 What are the minimum elements cerning records? that SBA will require before consenting 120.462 What are SBA’s additional require- to a securitization? ments on capital maintenance for SBA 120.426 What action will SBA take if a Supervised Lenders? securitizer transfers the subordinated 120.463 Regulatory accounting—What are tranche prior to the termination of the SBA’s regulatory accounting require- holding period? ments for SBA Supervised Lenders? 120.427 Will SBA approve a securitization 120.464 Reports to SBA. application from a capital impaired 120.465 Civil penalty for late submission of Securitizer? required reports. 120.428 What happens to a securitizer’s 120.466 SBA Supervised Lender application. other PLP responsibilities if SBA sus- 120.467 Evaluation of SBA Supervised Lend- pends its PLP approval privilege? er applicants. 120.468 Change of ownership or control re- OTHER CONVEYANCES quirements for SBA Supervised Lenders. 120.430 What conveyances are covered by SMALL BUSINESS LENDING COMPANIES (SBLC) §§ 120.430 through 120.435? 120.431 Which Lenders may sell, sell partici- 120.470 What are SBA’s additional require- pations in, or pledge 7(a) loans? ments for SBLCs? 120.432 Under what circumstances does this 120.471 What are the minimum capital re- subpart permit sales of, or sales of par- quirements for SBLCs? ticipating interests in, 7(a) loans? 120.472 Higher individual minimum capital 120.433 What are SBA’s other requirements requirement. for sales and sales of participating inter- 120.473 Procedures for determining indi- ests? vidual minimum capital requirement. 120.434 What are SBA’s requirements for 120.474 Relation to other actions. loan pledges? 120.475 Change of ownership or control. 120.435 Which loan pledges do not require 120.476 Prohibited financing. notice to or consent by SBA? 120.490 Audits. DELEGATED AUTHORITY CRITERIA Subpart E—Servicing, Liquidation and Debt 120.440 How does a 7(a) Lender obtain dele- Collection Litigation of 7(a) and 504 Loans gated authority? SBA’S PURCHASE OF A GUARANTEED PORTION SBA EXPRESS AND EXPORT EXPRESS LOAN 120.520 Purchase of 7(a) loan guarantees. PROGRAMS 120.521 What interest rate applies after SBA 120.441 SBA Express and Export Express purchases its guaranteed portion? Loan Programs. 120.522 Payment of accrued interest to the 120.442 Process to obtain or renew SBA Ex- Lender or Registered Holder when SBA press or Export Express authority. purchases the guaranteed portion. 120.443 SBA Express and Export Express 120.523 What is the ‘‘earliest uncured pay- loan processing requirements. ment default’’? 120.444 Eligible uses of SBA Express and Ex- 120.524 When is SBA released from liability port Express loan proceeds.