SOP - SBA

Aug 1, 2008 - Additional Requirements for Pilot Loan Programs . .... SECONDARY MARKET FOR SBA GUARANTEED LOANS ………………... ...... (4) For most wholesale businesses, the applicant and its affiliates cannot have more than.
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SOP 50-10(5)

Lender and Development Company Loan Programs

U.S. Small Business Administration Office of Financial Assistance

SOP 50 10 (5)

TABLE OF CONTENTS

SUBPART A ……………………………………………………………………………

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PURPOSE OF THIS SUBPART ……………………………………………………… 7 CHAPTER 1 - 7(A) Lenders ……………………………………………………………… 7 1. THE 7(A) LOAN PROGRAM …………………………………………………… 7 2. BECOMING A 7(A) LENDER …………………………………………………… 7 3. HOW SBA OVERSEES 7(A) LENDERS ………………………………………… 15 4. TYPES OF 7(A) LENDERS ……………………………………………………… 19 a. Certified Lenders Program………………………………………………… 19 b. Preferred Lenders Program………………………………………………… 24 c. SBA Express Program……………………………………………………… 35 d. Pilot Loan Programs……………………………………………………….. 46 CHAPTER 2 – SMALL BUSINESS LENDING COMPANIES ………………………… 51 1. A SMALL BUSINESS LENDING COMPANY .......................................... …….... 51 2. PROCESS FOR APPLYING TO BECOME AN SBLC …………………………… 51 CHAPTER 3 – CERTIFIED DEVELOPMENT COMPANIES ..…………………………. 54 1. THE 504 LOAN PROGRAM ……………………………………………………… 54 2. BECOMING A CDC ……………………………………………………………… 54 3. PROCESS OF APPLYING TO BECOME A CDC ………………………….……. 61 4. SBA OVERSIGHT OF CDCS …………………………………………………….. 62 5. TYPES OF CDCs ………………………………………………………………….. 67 a. Priority CDCs………………………………………………………………. 67 b. Accredited Lenders Program (ALP)...……………………………………… 70 c. Premier Certified Lenders Program (PCLP)……..………………………… 72 6. AREA OF OPERATIONS ………………………………………....…………………76 a. Case-by-case ........................... …………………………………………….. 76 b. Local Economic Area (LEA) Expansion .......................... …………………. 76 c. Multi-State Expansion .......................... ……………………………………. 78 SUBPART B ………………………………………………………………………………. 81 PURPOSE OF THIS SUBPART …………….................…………………………………. 81 CHAPTER 1 – GENERAL DESCRIPTION OF THE 7(A) LOAN PROGRAMS …........ 81 1. VARIOUS DELIVERY METHODS.....…………………………………………. 81 2. USE OF LOAN PROCEEDS................................................................................... 81 Effective Date: August 1, 2008

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SOP 50 10 (5)

3. SUMMARY OF DELIVERY METHODS AND PILOT LOAN PROGRAMS…………………………………………………….……................81 4. CHARTS DESCRIBING VARIOUS SPECIALIZED PROGRAMS AND REQUIREMENTS..................................................................................... 82 5. SPECIAL PURPOSE LOANS.............................................................................. 87 6. DEFINITIONS APPLICABLE TO THE 7(A) LOAN PROGRAMS.................. 87 CHAPTER 2 – ELIGIBILITY FOR 7(A) GUARANTY ………………………………… 88 1. 2. 3.

INTRODUCTION …………………………………………………………………88 SUMMARY OF ELIGIBILITY REQUIREMENTS …………………………….. 88 ELIGIBILITY REQUIREMENTS ……………………………………………….. 89 a. Must be Organized for Profit.........................................................................89 b. Must be Small under SBA Size Requirements .............................................89 c. Must Demonstrate a Need for a Guaranty on the Loan ................................96 d. Ineligible Types of Businesses .....................................................................100 e. Businesses Owned by Non-US Citizens ..................................................... 116 f. The Eligible Passive Company Rule .......................................................... 119 g. Special Requirements for loans in the National Register of Historic Places 122 h. Additional Requirements for Pilot Loan Programs .................................... 122 i. Additional Eligibility Requirement for SBLCs ........................................... 124 j. Additional Eligibility Requirement for EWCP ............................................. 124 k. Additional Eligibility Requirement for CAPLines ....................................... 124 4. ELIGIBLE USE OF PROCEEDS............................................................................ 126 CHAPTER 3 – LOAN TERMS & CONDITIONS ……………………………………. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

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