October 21, 2014
By Bob Coleman
Editor, Coleman Report
Says SBA in its proposed rule to tighten up the language in its regs to make it very clear the agency has the right to suspend or revoke one’s participation in the SBA lending programs.
Here are a couple of highlights from the 11 page proposal.
Title 13, Section 103.2. SBA is proposing to change the word “may” to the words “have the privilege to” in order to clarify that it is a privilege to conduct business with SBA and not a right.
Title 13, Section 103.1. In subsection (a), SBA would clarify that the list of agents in the definition for Agents is not all-inclusive and is proposing to add the term “loan agent” into the non-comprehensive list of various representatives who are considered Agents for the purpose of the regulation.
Agent means a representative authorized to conduct business on behalf of another, including but not limited to an attorney, accountant, consultant, loan agent (such as a packager, referral agent, or lender service provider), or any other person representing an Applicant or Participant by conducting business with SBA.
In addition, SBA is proposing to clarify the term “false statements” by changing it to “making false or misleading statements or representations,” which would make clear that the type of false statements at issue include misleading statements and representations.
In subsection 103.4(g), SBA is proposing to replace the words “Lender Service Provider or Referral Agent and a Packager for an Applicant” with the words “a Lender Service Provider and a Packager for an Applicant or acting as both a Referral Agent and a Packager for an Applicant” in order to clearly state the specific relationships that constitute the “two master” prohibition set forth in the subsection.
You may comment on the rule until December 15, 2014.