§ 120.1070 - SBA Lender oversight fees.

§ 120.1070 SBA Lender oversight fees.

Cross Reference

Link to an amendment published at 82 FR 39505, Aug. 21, 2017.

Lenders are required to pay to SBA fees to cover costs of examinations and reviews and, if assessed by SBA, other Lender oversight activities.

(a) Fee components: The fees may cover the following:

(1) On-site examinationsExaminations. The costs of conducting on-site a safety and soundness examinations examination and related activities of an SBA-Supervised Lender, including any expenses that are incurred in relation to the examination . For the purposes of this paragraph, the term “SBA-Supervised Lender” means a Small Business Lending Company or a Non-Federally Regulated Lender. and such activities.

(2) On-site reviewsReviews. The costs of conducting an on-site a review of a 7(a) Lender or a 7(a) Lender's loans, and related review activities (e.g., corrective action assessments, delegated loan reviews), including any expenses that are incurred in relation to the review and such activities.

(3) Off-site reviews/monitoringMonitoring. The costs of conducting off-site monitoring reviews /monitoring of a 7(a) Lender, including any expenses that are incurred in relation to the monitoring review /monitoring activities. SBA will assess this charge based on each Lender's portion of the total dollar amount of SBA guarantees in SBA's portfolio. SBA may waive the assessment of this fee for all Lenders owing less than a threshold amount below which SBA determines that it is not cost effective to collect the fee.

(4) Other lender oversight activities. The costs of additional expenses that SBA incurs in carrying out Lender other lender oversight activities (for example, the salaries and travel expenses of SBA employees and equipment expenses that are directly related to carrying out Lender lender oversight activities). This charge will be based on each , technical assistance and analytics to support the monitoring and review program, and supervision and enforcement activity costs).

(b) Allocation. SBA will assess to 7(a) Lender(s) the costs associated with the review, examination, monitoring, or other lender oversight activity, as determined by SBA in its discretion. In general:

(1) Where the costs that SBA incurs for a review, exam, monitoring or other lender oversight activity are specific to a particular 7(a) Lender, SBA will charge that 7(a) Lender a fee for the actual costs of conducting the review, exam, monitoring or other lender oversight activity; and

(2) Where the costs that SBA incurs for the lender oversight activity are not sufficiently specific to a particular Lender, SBA will assess a fee based on each 7(a) Lender's portion of the total dollar amount of SBA guarantees in SBA's total portfolio or in the relevant portfolio segment being reviewed or examined, to cover the costs of such activity.

(b)

SBA may waive the assessment of this fee for all 7(a) Lenders owing less than a threshold amount below which SBA determines that it is not cost effective to collect the fee.

(c) Billing process. For the

on-site

examinations or reviews conducted under paragraphs (a)(1) and (

a)(

2)

above

of this section, SBA will bill each 7(a) Lender for the amount owed following completion of the examination, review or

review

related activity. For

the off-site reviews/

monitoring conducted under paragraph (a)(3)

above

of this section and the other

Lender

lender oversight activity expenses incurred under paragraph (a)(4)

above

of this section, SBA will bill each 7(a) Lender for the amount owed on an annual basis. SBA will state in the bill the date by which payment is due SBA and the approved payment method(s). The payment due date will be no less than 30 calendar days from the bill date.

(

c

d) Delinquent payment and late-payment charges. Payments that are not received by the due date specified in the bill shall be considered delinquent. SBA will charge interest, and other applicable charges and penalties, on delinquent payments, as authorized by 31 U.S.C. 3717. SBA may waive or abate the collection of interest, charges and/or penalties if circumstances warrant. In addition, a 7(a) Lender's failure to pay any of the fee components described in this section, or to pay interest, charges and penalties that have been charged, may result in a decision to suspend or revoke a participant's eligibility

or to

, limit a participant's delegated authority, or other remedy available under law.

[61 FR 3235, Jan. 31, 1996, as amended at 82 FR 39505, Aug. 21, 2017]