13 C.F.R. § 120.812 Probationary period for newly certified CDCs.
Title 13 - Business Credit and Assistance
(a) Newly certified CDCs will be on probation for a period of two years from the date of certification, at the end of which the CDC must petition the Lead SBA Office for: (1) Permanent CDC status; or (2) A single, one-year extension of probation. (b) SBA will consider the failure to file a petition before the end of the probationary period as a withdrawal from the 504 program. If the CDC elects withdrawal, SBA will direct the CDC to transfer all funded and/or approved loans to another CDC, SBA, or another servicer approved by SBA. (c) The Lead SBA Office will send the petition and its recommendation to the AA/FA, who will make the final decision. SBA will determine permanent CDC status or an extension of probation, in part, based upon the CDC's compliance with the certification and operational requirements in §§120.820 through 120.830. (d) SBA will notify the CDC in writing of its decision, and, if the petition is declined, the reasons for the decision. [68 FR 57980, Oct. 7, 2003]
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart H—Development Company Loan Program (504)
Certification Procedures To Become a CDC
§ 120.812 Probationary period for newly certified CDCs.
