---
kind: "section"
citation: "13 C.F.R. § 120.1703"
title: "13"
number: "120.1703"
heading: "Qualifications to be a Pool Originator."
url: "https://uscodex.org/cfr/13/120.1703"
---

# §120.1703. Qualifications to be a Pool Originator.

- (a) **Application to become Pool Originator.** The application to become a Pool Originator is available from the SBA and can be found on SBA's website. In order to qualify as a Pool Originator, an entity must send the application to the SBA and certify that it is a Pool Assembler or it:
  - (1) Is regulated by the appropriate agency as defined in section 3(a)(34)(G) of the Securities Exchange Act of 1934 ([15 U.S.C. 78c(a)(34)(G)](/usc/15/78c.md?p=a-34-G));
  - (2) Meets all financial and other applicable requirements of its regulatory authority and the Government Securities Act of 1986, as amended (Pub. L. 99-571, 100 Stat. 3208);
  - (3) Has the financial capability to originate acceptable pools consisting of eligible First Lien Position 504 Loans in sufficient quantity to support the issuance of Pool Certificates;
  - (4) Is in good standing with SBA (as the SBA determines), and is Satisfactory with the Office of the Comptroller of the Currency (OCC) if it is a national bank, the Federal Deposit Insurance Corporation if it is a bank not regulated by the OCC, the Financial Institutions Regulatory Authority if it is a member, the National Credit Union Administration if it is a credit union, as determined by SBA; and
  - (5) for any Pool Originator that is an SBA Lender, that the SBA Lender has satisfactory SBA performance, as determined by SBA in its sole discretion.
- (b) **Approval by SBA.** An entity may not submit applications to form Pools to the CSA until SBA has approved its application to become a Pool Originator.
- (c) **Conduct of business by Pool Originator.** An entity continues to qualify as a Pool Originator so long as it:
  - (1) Meets the eligibility standards in [paragraph (a)](#a) of this section;
  - (2) Conducts its business in accordance with SBA regulations and accepted securities or banking industry practices, ethics, and standards;
  - (3) Maintains its books and records in accordance with generally accepted accounting principles or in accordance with the guidelines of the regulatory body governing its activities; and
  - (4) **Has not been suspended or terminated from the Program by SBA.**

## Notes

### Amendments

[74 FR 56093, Oct. 30, 2009, as amended at 82 FR 39506, Aug. 21, 2017]

### Source

Source: 74 FR 56093, Oct. 30, 2009, unless otherwise noted.

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.

### Amendments

[74 FR 56093, Oct. 30, 2009, as amended at 82 FR 39506, Aug. 21, 2017]