13 CFR 120.426
§ 120.426 What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period?
United States · 13 CFR — Business Credit and Assistance · Status: effective
Cite this
- Citation
- 13 CFR 120.426, § 120.426 What action will SBA take if a securitizer transfers the subordinated tranche prior to the termination of the holding period?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52113
- Permanent ID
ys:prov:52113@1- SHA-256
0a4a8fcee270d22283c842d3c1e772efa0c24ebbe3e9622d8e1c3414c009a1a4
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
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 to lift the suspension. If an explanation is not received within 30 calendar days or the explanation is not satisfactory to the Committee, SBA may transfer the servicing of the applicable securitized loans, including the securitizers' servicing fee on the guaranteed and unguaranteed portions and the premium protection fee on the guaranteed portion, to another SBA participating Lender.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.