SOP 50 10 5(F)

1 SOP 50 10 5(F). Lender and Development Company Loan Programs Small Business Administration Office of Financial Assistance SOP 50 10 5(F). TABLE OF CONTENTS. SUBPART 6. PURPOSE OF THIS SUBPART .. 6. Chapter 1: 7(a) Lenders .. 7. THE 7(A) LOAN PROGRAM .. 7. BECOMING A 7(A) LENDER .. 7. HOW SBA OVERSEES 7(A) LENDERS .. 14. TYPES OF 7(A) LENDERS WITH DELEGATED AUTHORITY .. 17. CHAPTER 2: SMALL BUSINESS LENDING COMPANIES .. 40. A SMALL BUSINESS LENDING COMPANY .. 40. PROCESS FOR ACQUIRING AN SBLC .. 40. CHAPTER 3: CERTIFIED DEVELOPMENT COMPANIES .. 43. SUBPART B .. 70. PURPOSE OF THIS SUBPART.

2 70. Chapter 1: GENERAL DESCRIPTION OF THE 7(a) LOAN PROGRAMS .. 71. VARIOUS DELIVERY METHODS .. 71. USE OF LOAN PROCEEDS .. 71. SPECIAL PURPOSE LOANS .. 72. DEFINITIONS APPLICABLE TO THE 7(A) LOAN PROGRAMS .. 73. CHAPTER 2: ELIGIBILITY FOR 7(A) GUARANTY LOAN PROGRAM .. 74. INTRODUCTION .. 74. SUMMARY OF ELIGIBLITY REQUIREMENTS .. 74. ELIGIBILITY REQUIREMENTS .. 75. The Small Business Must be Organized for Profit.. 75. The Applicant Must Be Small Under SBA Size Requirements .. 76. The Small Business Applicant Must Demonstrate a Need for a Guaranty on the Loan.. 84. Ineligible Types Of Businesses.

3 87. Businesses Owned by Non-US Citizens .. 100. The Eligible Passive Company (EPC) 104. Special Requirements For Loans Where Collateral May Be Included In The National Register Of Historic Places .. 106. Additional Eligibility Requirement For SBLCs .. 107. Additional Eligibility Requirement For EWCP .. 108. Additional Eligibility Requirements For CAPL ines .. 108. ELIGIBLE USES OF LOAN PROCEEDS .. 109. CHAPTER 3: LOAN TERMS AND CONDITIONS .. 124. MAXIMUM LOAN AMOUNTS .. 124. MAXIMUM GUARANTY AMOUNTS .. 127. LOAN MATURITIES .. 129. INTEREST RATES .. 133. SBA GUARANTY FEES.

4 139. OTHER FEES .. 144. PROHIBITED FEES .. 149. DISCLOSURE OF FEES AND LENDER EXPENSES .. 150. AGENTS .. 151. Effective Date: January 1, 2014 2. SOP 50 10 5(F). WHO MAY CONDUCT BUSINESS WITH SBA .. 153. CHAPTER 4: CREDIT STANDARDS, COLLATERAL AND ENVIRONMENTAL. POLICIES .. 157. CREDITWORTHINESS/CREDIT UNDERWRITING .. 157. COLLATERAL .. 164. ENVIRONMENTAL POLICIES AND PROCEDURES .. 174. CHAPTER 5: LOAN AUTHORIZATION .. 182. BASIC LOAN CONDITIONS .. 182. insurance REQUIREMENTS .. 183. IRS TAX TRANSCRIPT/VERIFICATION OF FINANCIAL INFORMATION .. 185. STANDBY AGREEMENTS.

5 187. ASSIGNMENT OF LEASE AND LANDLORD'S WAIVER .. 187. CONSTRUCTION LOAN PROVISIONS .. 188. SPECIAL PROVISIONS FOR FRANCHISES .. 190. CERTIFICATION REGARDING CHILD SUPPORT .. 190. SPECIAL PROVISION FOR CAPLINES .. 190. MODIFYING THE AUTHORIZATION .. 190. CHAPTER 6: SUBMISSION OF APPLICATION FOR GUARANTY .. 192. CONTENTS OF LENDER'S APPLICATION FOR GUARANTY .. 192. WHERE TO SUBMIT APPLICATION FOR GUARANTY .. 198. CHAPTER 7: POST-APPROVAL MODIFICATIONS, LOAN CLOSING &. DISBURSEMENT .. 202. POST APPROVAL/PRE-DISBURSEMENT REQUESTS FOR CHANGES .. 202. TRANSFER OF GUARANTY BETWEEN PARTICIPATING LENDERS.

6 203. PAYMENT OF GUARANTY 203. LOAN CLOSING AND DISBURSEMENT .. 203. CHAPTER 8: POST-DISBURSEMENT, SECONDARY MARKET, SECURITIZATION. AND LENDER REPORTING (SBA FORM 1502) .. 224. POST-DISBURSEMENT CHANGES .. 224. SECONDARY MARKET FOR SBA GUARANTEED LOANS .. 224. SECURITIZATION AND OTHER CONVEYANCES .. 224. LENDER REPORTING .. 225. SUBPART C .. 233. PURPOSE OF THIS SUBPART .. 233. CHAPTER 1: GENERAL PROVISIONS .. 233. PURPOSE OF THE 504 CERTIFIED DEVELOPMENT COMPANY LOAN PROGRAM.. 233. CREDIT STANDARDS .. 233. 234. HOW A 504 PROJECT IS FINANCED .. 235. CHAPTER 2: ELIGIBILITY.

7 241. INTRODUCTION .. 241. SUMMARY OF ELIGIBLITY REQUIREMENTS .. 241. ELIGIBILITY REQUIREMENTS .. 242. The Small Business Must Be Organized for Profit .. 242. Effective Date: January 1, 2014 3. SOP 50 10 5(F). The Applicant Must Be Small Under SBA Size Requirements Applicable to 504 Financial Assistance .. 242. The Small Business Applicant Must Demonstrate a Need for the 504 Loan .. 250. Ineligible Types of 253. Businesses Owned by Non-US Citizens .. 266. The Eligible Passive Company 269. Special Requirements for Loans Where Collateral May Be Included in the National Register of Historic Places.

8 272. 504 Program-Specific Eligibility Factors .. 272. CHAPTER 3: COLLATERAL, APPRAISALS AND ENVIRONMENTAL POLICIES .. 284. COLLATERAL .. 284. APPRAISAL REQUIREMENTS .. 286. ENVIRONMENTAL POLICIES AND PROCEDURES .. 288. CHAPTER 4: LOAN APPLICATION PROCEDURES AND CONTROLS .. 295. CDC'S 504 295. MINIMUM DEBENTURE AMOUNT .. 295. SUBMITTING THE APPLICATION .. 295. CHAPTER 5: LOAN CONDITIONS/AUTHORIZATION REQUIREMENTS .. 298. AUTHORIZATION BOILERPLATE/WIZARD .. 298. MODIFYING THE AUTHORIZATION .. 305. CHAPTER 6: CLOSINGS .. 307. RESPONSIBILITY FOR CLOSING THE 504 LOAN AND DEBENTURE.

9 307. THE CLOSING 307. SPECIFIC RESPONSIBILITIES AND PROCEDURES FOR CLOSING AND POST- CLOSING ACTIVITIES .. 308. USE OF CONSTRUCTION ESCROW ACCOUNT .. 311. CHAPTER 7: DEBENTURE PRICING & FUNDING .. 312. PRICING A 504 DEBENTURE .. 312. FUNDING THE DEBENTURE .. 315. CHAPTER 8: ALLOWABLE FEES .. 317. ALLOWABLE FEES THAT A 504 BORROWER MAY BE CHARGED .. 317. FEES FOR OTHER SERVICES .. 318. DISCLOSURE OF FEES AND EXPENSES .. 319. AGENTS .. 320. WHO MAY CONDUCT BUSINESS WITH SBA .. 321. CHAPTER 9: BORROWER'S DEPOSIT, DEBENTURE POOLS AND .. 323. RULES GOVERNING THE BORROWER'S DEPOSIT.

10 323. DEBENTURE POOLS .. 323. MISCELLANEOUS .. 323. POST-DISBURSEMENT ISSUES .. 323. APPENDIX 1: RESTRICTIONS ON FOREIGN CONTROLLED 325. APPENDIX 2: DEFINITIONS .. 328. APPENDIX 3: RELIANCE LETTER .. 334. APPENDIX 4: NAICS CODES OF ENVIRONMENTALLY SENSITIVE INDUSTRIES .. 336. APPENDIX 5: REQUIREMENTS PERTAINING TO GAS STATION LOANS .. 338. APPENDIX 6: SBA ENVIRONMENTAL INDEMNIFICATION AGREEMENT .. 340. Effective Date: January 1, 2014 4. SOP 50 10 5(F). I. RECITALS .. 340. II. DEFINITIONS .. 340. III. REPRESENTATIONS AND WARRANTIES .. 343. IV. COVENANTS .. 345. V. REMEDIATION.