What are SBA's additional requirements for SBLCs?

CFR · 2024-01-01 · US · Title 13

In addition to complying with SBA's requirements for SBA Lenders and SBA Supervised Lenders, an SBLC (including a Community Advantage SBLC) must meet the requirements contained in this regulation and the SBLC regulations that follow. (a) (1) Loans under section 7(a) (except section 7(a)(13) of the Act in participation with SBA); and/or (2) SBA guaranteed loans to Intermediaries (see subpart G of this part). (b) (c) (d) (1) An SBLC may disburse funds only by checks or wire transfers authorized by signatures of two or more officers covered by the SBLC's fidelity bond, except that checks in an amount of $10,000 or less may be signed by one bonded officer, provided that such action is permitted under the SBLC's fidelity bond. (2) There must be two or more bonded officers, or one bonded officer and a bonded employee to open safe deposit boxes or withdraw securities from safekeeping. The SBLC must furnish to each depository bank, custodian, or entity providing safe deposit boxes a certified copy of the resolution implementing control procedures. (e) (f) (2) In the case of a purchase of an SBLC by an organization that already owns an SBLC, the purchasing entity will have six months to submit a plan to SBA for the divestiture of one of the SBLCs. All divestiture plans must be approved by SBA and SBA may withhold approval in its discretion. Divestiture of the SBLC must occur within one year of purchase date. (3) Without prior written SBA approval, an Associate of one SBLC must not be

official document · source cfr-2024 · id 13:§ 120.470