13 C.F.R. § 120.855 Types of enforcement actions.
Title 13 - Business Credit and Assistance
(a) Enforcement. Upon a determination that one or more of the grounds set forth in §120.854(a) exist, the AA/FA or his or her authorized delegate may undertake, in SBA's sole discretion, one or more of the following enforcement actions: (1) Suspend or terminate the CDC's authority to participate in the 504 program or in any pilot or program within the 504 program established by SBA other than a CDC's authority to participate as an ALP CDC or PCLP CDC, which are governed by paragraphs (c) and (d) of this section. (2) Suspend or terminate the CDC's authority to perform underwriting, closing, servicing, liquidation, or litigation on one or more 504 loans or to perform any other function in connection with the 504 program. (3) Require the CDC to transfer some or all of its existing 504 loan portfolio and/or some or all of its pending 504 loan applications to SBA, another CDC, or any other entity designated by SBA. Any such transfer may be on a temporary or permanent basis, in SBA's sole discretion. (4) Instruct the CSA to withhold payment of servicing, late and/or other fee(s) to the CDC. (b) Immediate suspension. If SBA determines that one or more grounds set forth in §120.854(a) exist and further determines that immediate action is necessary to prevent the risk of significant loss to SBA or to prevent significant impairment of the integrity of the 504 program, the AA/FA may issue a written notice of immediate suspension to a CDC, suspending all or certain activities of a CDC pertaining to the 504 program, and such suspension will be effective as of the date of the notice. SBA may combine a notice of immediate suspension with any enforcement action set forth in paragraphs (a), (c) or (d) of this section. (c) Suspension or termination of ALP CDC. Upon a determination that one or more of the grounds set forth in §120.854(b) exist, the AA/FA or his or her authorized delegate may, in SBA's sole discretion, suspend or terminate a CDC's authority to participate as an ALP CDC. (d) Suspension or termination of PCLP CDC. Upon a determination that one or more of the grounds set forth in §120.854(c) exist, the AA/FA or his or her authorized delegate may, in SBA's sole discretion, suspend or terminate a CDC's authority to participate as a PCLP CDC. (e) Term of suspension. Any suspension issued under this section will be for a term determined by SBA in its sole discretion. [68 FR 57985, Oct. 7, 2003]
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart H—Development Company Loan Program (504)
SBA Enforcement Actions
§ 120.855 Types of enforcement actions.
