SBA · final-rule · Published 1999-02-10 · 64 FR 6503
Document
Document number
99-3122
Federal Register citation
64 FR 6503
CFR reference
13 CFR 120
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Small Business Administration
Publication date
1999-02-10
Abstract
The U.S. Small Business Administration (SBA) is promulgating a final rule to allow all participating Lenders to securitize the unguaranteed portion of, sell, sell a participating interest in, or pledge 7(a) loans. The rule has two components: securitizations; and pledges, sales of participations, and sales other than for the purpose of securitizing. In the first component, SBA establishes a three level unified approach to regulating securitizations. In the second component, SBA sets out rules to govern all pledges of, sales of a participating interest in, and sales of, other than for the purpose of securitizing, 7(a) loans. The components apply equally to all depository and nondepository Lenders, leveling the playing field for all SBA Lenders. Both components were drafted to protect the safety and soundness of SBA's 7(a) loan program.