Preference is any arrangement giving a Lender or a CDC a preferred position compared to SBA relating to the making, servicing, or liquidation of a business loan with respect to such things as repayment, collateral, guarantees, control, maintenance of a compensating balance, purchase of a Certificate of deposit or acceptance of a separate or companion loan, without SBA's consent.


13 CFR § 120.10

Scoping language

The following terms have the same meaning wherever they are used in this part. Defined terms are capitalized wherever they appear.

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