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. It is currently a non-SBA lender that makes a reasonable number of commercial loans of $50,000 or less.įor more information and a complete description of the application process, consult SBA’s SOP 50 10 5(A).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: There are no minimum SBA loan volume requirements to begin making SBAExpress loans. It is currently an SBA partner lender and meets certain portfolio performance standards. EligibilityĪ lender may be eligible to participate in SBAExpress if: Loans made under this program generally follow SBA’s standards for the 7(a) Loan Program. May request expedited SBA purchase on small loans or in situations where liquidation may be delayed. Lenders are not required to take collateral for loans up to $25,000 may use their existing collateral policy for loans over $25,000 up to $350,000.
Become a pclp cdc plus#
Lender primarily uses own forms and procedures, plus SBA Form 1919, Borrower Information. Up to seven years with maturity extensions permitted at the outset. Rates can be fixed or variable and are tied to the prime rate (as published in The Wall Street Journal), LIBOR, or the optional peg rate (published quarterly in the Federal Register) and may be fixed or variable, but they may not exceed SBA maximums: lenders may charge up to 6.5 % over the base rate for loans of $50,000 or less, and up to 4.5 % over for loans over $50,000.īy SBA qualified lenders may be granted authorization to make eligibility determinations.
Lenders and borrowers can negotiate the interest rate. SBAExpress features an accelerated turnaround time for SBA review a response to an application will be given within 36 hours.