What ethical requirements apply to participants?

CFR · 2024-01-01 · US · Title 13

Lenders, Intermediaries, and CDCs (in this section, collectively referred to as “Participants”), must act ethically and exhibit good character. Ethical indiscretion of an Associate of a Participant or a member of a CDC will be attributed to the Participant. A Participant must promptly notify SBA if it obtains information concerning the unethical behavior of an Associate. The following are examples of such unethical behavior. A Participant may not: (a) Self-deal; (b) Have a real or apparent conflict of interest with a small business with which it is dealing (including any of its Associates or an Associate's Close Relatives) or SBA; (c) Own an equity interest in a business that has received or is applying to receive SBA financing (during the term of the loan or within 6 months prior to the loan application); (d) Be incarcerated, on parole, or on probation; (e) Knowingly misrepresent or make a false statement to SBA; (f) Engage in conduct reflecting a lack of business integrity or honesty; (g) Be a convicted felon, or have an adverse final civil judgment (in a case involving fraud, breach of trust, or other conduct) that would cause the public to question the Participant's business integrity, taking into consideration such factors as the magnitude, repetition, harm caused, and remoteness in time of the activity or activities in question; (h) Accept funding from any source that restricts, prioritizes, or conditions the types of small businesses that the Participant may assist und

official document · source cfr-2024 · id 13:§ 120.140