What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period?

CFR · 2024-01-01 · US · Title 13

If a securitizer transfers the subordinated tranche prior to the termination of the holding period, SBA will suspend immediately the securitizer's ability to make new 7(a) loans. The securitizer will have 30 calendar days to submit an explanation to Lender Oversight Committee (“Committee”). The Committee will have 30 calendar days to review the explanation and determine whether

official document · source cfr-2024 · id 13:§ 120.426