§ 120.972. Third Party Lender participation fee and CDC fee.
111 words·~1 min read·
/us/cfr/t13/s§ 120.972·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Participation fee. For loans approved by SBA after September 30, 1996, SBA must collect a one-time fee equal to 50 basis points on the Third Party Lender's participation in a Project when the Third Party Lender occupies a senior credit position to SBA in the Project.
(b)CDC fee. For loans approved by SBA after September 30, 1996, SBA must collect an annual fee from the CDC equal to 0.125 percent of the outstanding principal balance of the Debenture. The fee must be paid from the servicing fees collected by the CDC and cannot be paid from any additional fees imposed on the Borrower. \[68 FR 57988, Oct. 7, 2003\]