Actions that require SBA’s prior written approval are as follows. The PCLP CDC's risk rating and its performance on its risk management benchmarks in the CDC Management Report, among other factors, will be considered in determining satisfactory SBA performance.ĭ. (2) If a PCLP CDC does not have a satisfactory SBA performance, SBA may withdraw the CDC’s unilateral authority until the CDC’s performance is satisfactory. (c) Document the justifications for its decisions and retain these and supporting documents in its file for future SBA review to determine if the action taken by the CDC was prudent, commercially reasonable, and complied with all loan program requirements. (b) Notify SBA of any action taken under its unilateral authority that would require a change in SBA’s database or in the 504 loan authorization and (a) Have SBA’s prior written approval for all non-unilateral actions (1) PCLP CDCs are required to take all “unilateral” servicing actions without prior SBA approval for all loans in its portfolio. PCLP CDCs must adhere to the same prudent lending standards for loan servicing followed by commercial lenders on loans without a government guarantee when servicing 504 loans in their portfolio. In the Regulations, 13 CFR §120.536 identifies certain servicing and liquidation actions that require the prior written consent of SBA for PCLP CDCs.ī. What servicing actions may the Premier Certified Lenders Program (PCLP) CDC approve with unilateral Authority?Ī. An ALP-CDC may want to consult its own counsel, if appropriate, before submitting such documents to SBA, in anticipation of such review by SBA counsel. (3) The ALP-CDC must be aware that SBA counsel will review for legal sufficiency, all legal documents prepared for SBA’s signature. The purpose of this SOP is to provide guidelines for servicing activities for loans made under the 7(a), 504, and direct business loan programs by:
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