Basic requirements for operating a CDC.

CFR · 2024-01-01 · US · Title 13

A CDC must operate in accordance with the following requirements: (a) (b) (1) Direct management to assign the responsibility for the internal control function (covering financial, credit, credit review, collateral, and administrative matters) to an officer or officers of the CDC; (2) Adopt and set forth procedures for maintenance and periodic review of the internal control function; (3) Direct the operation of a program to review and assess the CDC's 504-related loans. For the 504 review program, the internal control policies must specify the following: (i) Loan, loan-related collateral, and appraisal review standards, including standards for scope of selection (for review of any such loan, loan-related collateral or appraisal) and standards for work papers and supporting documentation; (ii) Loan quality classification standards consistent with the standardized classification systems used by the Federal Financial Institution Regulators; (iii) Specific control requirements for the CDC's oversight of Lender Service Providers; and (iv) Standards for training to implement the loan review program; and (4) Address other control requirements as may be established by SBA. (c) (d) (1) Is registered or licensed to practice as a public accountant, and is in good standing, under the laws of the state or other political subdivision of the United States in which the CDC's principal office is located; (2) Agrees in the engagement letter with the CDC to provide the SBA with access to and cop

official document · source cfr-2024 · id 13:§ 120.826