(8) Taking any servicing action that is in conflict with SBA’s regulations in effect at the time of the action. (6) Taking title to environmentally contaminated property, or taking over operation and control of a business that handles hazardous substances or hazardous wastes. (5) Taking title to any property in the name of SBA. (4) Compromising the principal balance of a loan or releasing a guarantor for less than the full amount owed. ![]() (3) Engaging in any activity that creates a conflict of interest (or the appearance of a conflict of interest) with a CDC (or any employee of the CDC) or with a third party lender (or associate of the third party lender). (2) Conferring a preference (or the appearance of a preference) on a CDC (or any employee of the CDC) or with a third party lender (or associate of the third party lender). (1) Increasing the principal amount of a loan above that authorized by SBA at loan origination. ![]() Actions that require SBA’s prior written approval are as follows. The PCLP CDC's risk rating and its performance on its risk management benchmarks in the CDC Management Report, among other factors, will be considered in determining satisfactory SBA performance.ĭ. (2) If a PCLP CDC does not have a satisfactory SBA performance, SBA may withdraw the CDC’s unilateral authority until the CDC’s performance is satisfactory. (c) Document the justifications for its decisions and retain these and supporting documents in its file for future SBA review to determine if the action taken by the CDC was prudent, commercially reasonable, and complied with all loan program requirements. (b) Notify SBA of any action taken under its unilateral authority that would require a change in SBA’s database or in the 504 loan authorization and (a) Have SBA’s prior written approval for all non-unilateral actions (1) PCLP CDCs are required to take all “unilateral” servicing actions without prior SBA approval for all loans in its portfolio. PCLP CDCs must adhere to the same prudent lending standards for loan servicing followed by commercial lenders on loans without a government guarantee when servicing 504 loans in their portfolio. In the Regulations, 13 CFR §120.536 identifies certain servicing and liquidation actions that require the prior written consent of SBA for PCLP CDCs.ī. What servicing actions may the Premier Certified Lenders Program (PCLP) CDC approve with unilateral Authority?Ī. An ALP-CDC may want to consult its own counsel, if appropriate, before submitting such documents to SBA, in anticipation of such review by SBA counsel. (3) The ALP-CDC must be aware that SBA counsel will review for legal sufficiency, all legal documents prepared for SBA’s signature. To examine impacts of having a viable market for corn stover on crop rotation at a farm level the PCLP model which is originally developed at Purdue University is used and modified.The purpose of this SOP is to provide guidelines for servicing activities for loans made under the 7(a), 504, and direct business loan programs by: To examine impacts of a viable market for corn stover at a farm level we tuned the PCLP model with market clearing prices obtained from the PE model as described above. With a viable corn stover market and stover at a farm price of $85.40/ton, the large majority of farmers in the PCLP data set found it profitable to harvest stover in the base case.Ĭlearly, PCLP captures some but not all of these differences.Figure 3 displays the allocation of acres for each scenario. The PCLP model takes specific data such as land, labor, capital, crop yields, crop prices, and detailed input costs and determines activities which maximize farmer’s profits. Then we will feed the results of this model into the Purdue Crop/Livestock Linear Programing ( PCLP) model (Doster, et al., 2008) to examine farmers land allocation behavior in the presence of a viable market for corn stover and test the sensitivity of the land allocation process at the farm level with respect to changes in key economic factors.Īll PCLP- CDCs have ALP status as that is a requirement for being provided PCLP authority. To tune the PCLP model with market conditions in the presence of corn stover activity, prices obtained from the partial equilibrium model are used. 103-403 also authorized the SBA’s Premier Certified Lenders Program ( PCLP) on a pilot basis through October 1, 1997. ![]() PCLP is a linear programming model which helps determine profit-maximizing decisions for a given farm according to its background activities, its existing resources, and according to current prices of commodities and input costs.Ībout one-third of CDCs have ALP status and they account for about 60% to 70% of all 504/CDC lending each year.54 Premier Certified Lenders Program StatusP.L.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |