Grounds for formal enforcement actions—Intermediaries participating in the Microloan Program.

CFR · 2024-01-01 · US · Title 13

(a) (b) (c) (1) Failure to comply materially with any requirement imposed by Loan Program Requirements; (2) Failure to meet any one of the following performance standards: (i) Coverage of the service territory assigned by SBA, including honoring SBA's determined boundaries of neighboring intermediaries; (ii) Fulfill reporting requirements; (iii) Manage program funds and matching funds in a satisfactory and financially sound manner; (iv) Communicate and file reports within six months after beginning participation in program; (v) Maintain a currency rate of 85% or more for the Intermediary's SBA Microloan portfolio (that is, loans that are no more than 30 days late in scheduled payments); (vi) Maintain a default rate in the Intermediary's Microloan portfolio of 15% or less of the cumulative dollars loaned under the program; (vii) Maintain a staff trained in Microloan Program issues and Loan Program Requirements; (viii) Maintain the financial ability to sustain the Intermediary's operations (including, but not limited to, adequate capital), as determined by SBA; (ix) Satisfactorily provide in-house technical assistance to Microloan borrowers and prospective Microloan borrowers; or (x) Close and fund the required number of microloans per year under § 120.716; (3) Failure within the time period specified to correct an underwriting, closing, disbursing, servicing, liquidation, litigation, or reporting deficiency, or failure in any material respect to take other corrective action, a

official document · source cfr-2024 · id 13:§ 120.1425