TITLE 13 - BUSINESS CREDIT AND ASSISTANCE

CHAPTER I - SMALL BUSINESS ADMINISTRATION

PART 115 - SURETY BOND GUARANTEE

subpart b - GUARANTEES SUBJECT TO PRIOR APPROVAL

115.30 - Submission of Surety's guarantee application.

  (a) Legal effect of application. By submitting an application to SBA for a bond guarantee, the Prior Approval Surety certifies that the Principal meets the eligibility requirements set forth in 115.13 and that the underwriting standards set forth in 115.15 have been met.

  (b) SBA's determination. SBA's approval or decline of a guarantee application is made in writing by an authorized SBA officer. The officer may provide telephone notice before the Prior Approval Surety receives SBA's guarantee approval form if the officer has already signed the form. In the event of a conflict between the telephone notice and the written form, the written form controls.

  (c) Reconsideration-appeal of SBA determination. A Prior Approval Surety may request reconsideration of a decline from the SBA officer who made the decision. If the decision on reconsideration is negative, the Surety may appeal to an individual designated by the AA/SG. If the decision is again adverse, the Surety may appeal to the AA/SG, who will make the final decision.

  (d) Notice and payment to SBA. When the Surety has Executed a Final Bond, including a Final Bond under a bonding line, the Surety must complete the Prior Approval Agreement, and submit the form, together with the Principal's payment for its guarantee fee (see 115.32(b)) to SBA within 45 days, or in the case of a bonding line, within 15 business days (see 115.33(d)(2)) after Execution of the bond.