§ 120.705. What is a Specialized Intermediary?
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/us/cfr/t13/s§ 120.705·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
At the end of an Intermediary's first year of participation in the program, SBA will determine whether it qualifies as a Specialized Intermediary. An Intermediary qualifies as a Specialized Intermediary if it maintains a portfolio of Microloans averaging \$10,000 or less. Specialized Intermediaries qualify for more favorable interest rates on SBA loans. If, after the first year, an Intermediary qualifies as a Specialized Intermediary, the special interest rate is applied retroactively to SBA loans made to the Intermediary.
After the first year SBA will determine an Intermediary's qualifications as a Specialized Intermediary annually, based on its lending practices during the term of its participation in the program. Specialized Intermediaries also qualify for a greater amount of technical assistance grant funding. \[61 FR 3235, Jan. 31, 1996, as amended at 66 FR 47878, Sept. 14, 2001\]