13 C.F.R. § 120.410 Requirements for all participating Lenders.
Title 13 - Business Credit and Assistance
A Lender must: (a) Have a continuing ability to evaluate, process, close, disburse, service and liquidate small business loans; (b) Be open to the public for the making of such loans (not be a financing subsidiary, engaged primarily in financing the operations of an affiliate); (c) Have continuing good character and reputation, and otherwise meet and maintain the ethical requirements of §120.140 (d) Be supervised and examined by a State or Federal regulatory authority, satisfactory to SBA; and (e) In order to make Low Documentation loans, be: (1) A bank or thrift institution which has executed an SBA Form 750, Loan Guaranty Agreement, and which has at least 20 qualified loans outstanding as of the call report date closest to the date of its fiscal year end, or (2) An institution other than a bank or thrift institution which has executed an SBA Form 750, Loan Guaranty Agreement, and which has at least 20 qualified loans outstanding as of its latest fiscal year end. For purposes of this paragraph (e), a qualified loan is one which was initially approved in the amount of $100,000 or less and is classified as a commercial, industrial or commercial real estate loan for purposes of call reporting. A lender may request an exception to the requirements of this paragraph (e) from the SBA Associate Administrator for Financial Assistance. [61 FR 3235, Jan. 31, 1996, as amended at 62 FR 302, Jan. 3, 1997]
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart D—Lenders
§ 120.410 Requirements for all participating Lenders.
