§ 120.1892What happens if an SISMBD does not use SISMBD Loan funds for a statutorily mandated purpose?
If the Administrator finds that an SISMBD has used loan proceeds for any purpose other than to finance the inventory of the government guaranteed portion of loans originated, underwritten, and closed under Section 7(a) of the Small Business Act or Pools of such loans, the Administrator shall:
(a) Demand immediate repayment of any outstanding loans to the SISMBD;
(b) Prohibit the SISMBD, its affiliates, or any future corporate manifestation of the SISMBD from using the SBA Secondary Market Lending Authority;
(c) Report to Congress the identity of any borrower found by the Administrator to have misused funds made available under the Secondary Market Loan Program; and
(d) Take any other actions the Administrator, in consultation with the Attorney General of the United States, deems appropriate.
Title 13 published on 2014-01-01
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