§ 120.1540 - Types of formal enforcement actions - Intermediaries participating in the Microloan Program.

§ 120.1540 Types of formal enforcement actions - Intermediaries participating in the Microloan Program and NTAPs.

Cross Reference

Link to an amendment published at 85 FR 14783, Mar. 16, 2020.

Upon a determination that any ground set out in § 120.1425 exists, the SBA may take in its discretionD/OCRM may undertake, in his/her discretion (and with the involvement of the LOC as appropriate and consistent with its assigned responsibilities), one or more of the following formal enforcement actions against an Intermediary or NTAP, and is not restricted from delegating as appropriate:

(a) Suspension or pre-revocation sanctions Suspension. SBA may suspend an Intermediary's authority to participate in the Microloan Program, which may include, but are is not limited to:

(1) Accelerated reporting requirements;

(2) Accelerated loan repayment requirements for outstanding program debt to SBA, as applicable;

(3) Imposition of a temporary lending moratorium, as applicable; or

(4) Imposition of a temporary training moratorium.

(b) Revocation of

, the authority to make, service, liquidate, and/or litigate SBA microloans, and the imposition of a freeze on the Intermediary's MRF and LLRF accounts.

(b) Immediate suspension. SBA may suspend, effective immediately, an Intermediary's authority to participate in the Microloan Program, which may include, but is not limited to, the authority to make, service, liquidate, and/or litigate SBA microloans, and the imposition of an immediate freeze on the Intermediary's MRF and LLRF accounts. Section 120.1425(c)(6) sets forth the grounds for SBA Microloan Program immediate suspension of an Intermediary.

(c) Revocation. SBA may revoke an Intermediary's authority to participate in the Microloan

program

Program which

will include

may include, but is not limited to:

(1) Removal from the program;

(2) Liquidation of the Intermediary's

Microloan Revolving Fund and Loan Loss Reserve Fund

MRF and LLRF accounts by SBA, and application of the liquidated funds to any outstanding balance owed to SBA;

(3) Payment of outstanding debt to SBA by the Intermediary;

(4) Forfeiture or repayment of any unused grant funds by the Intermediary

or NTAP

;

(5) Debarment of the organization from receipt of

federal

Federal funds until loan and grant repayments are met;

or

and

(6)

Taking such

Surrender of possession of Intermediary's SBA microloan portfolio to SBA, with the microloan portfolio and all associated rights transferred on a permanent basis to SBA, in accordance with SBA's rights as a secured creditor.

(d) Other actions. Such other actions available under law.

[73 85 FR 7552114783, DecMar. 1116, 20082020]