SBA SOP 50 10 8, C.Ch1.B.3 — Financing Involving Industrial Development Bonds or Industrial Revenue Bonds

sba-sop-c-ch1-b-3

Verbatim text of SBA SOP 50 10 8 section C.Ch1.B.3 (Financing Involving Industrial Development Bonds or Industrial Revenue Bonds), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.

This register: .xlsx .csv

See also

SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.

Verbatim regulatory text (1)

Verbatim provisions from SBA SOP 50 10 8, C.Ch1.B.3 — Financing Involving Industrial Development Bonds or Industrial Revenue Bonds — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

SOP 50 10 8 C.Ch1.B.3

Effective 2025-06-01 · publisher's stamp for this provision

3. Financing Involving Industrial Development Bonds or Industrial Revenue Bonds SBA may participate in Projects financed in part, directly or indirectly, by obligations exempt from state or local taxes (for example, real estate tax exemptions). However, in accordance with OMB Circular A-129, “Policies for Federal Credit Programs and Non- Tax Receivables” (January 2013), SBA may not participate in projects financed in part, directly or indirectly, by Federal tax-exempt obligations. For Projects that do not involve Federal tax-exempt obligations, industrial development bonds or industrial revenue bonds (IDBs/IRBs) may be a source of funding for Projects under the following conditions: When the bond proceeds are used to fund the Third Party Loan: i. If the bond issuer requires that it hold title to the Project Property, the TPL’s and SBA’s respective liens must be properly recorded before any transfer of the title to the Project Property to the bond issuer; ii. If the bond issuer takes title to the Project Property and leases the Project Property to the Borrower, the bond issuer must assign the lease to the Third Party Lender and all payments under the lease must be paid to the Third Party Lender and serve as the payments under the loan; iii. If subparagraphs a.i. and a.ii. are met, then the Third Party Loan may remain in a senior lien position. iv. If the bond issuer does not require that it hold title to the Project Property but takes a lien on the Project Property, the Third Party Lender may still be in a senior lien position, but SBA’s lien position must not be subordinate to the bond issuer’s lien. When the bond proceeds are used to fund the Borrower’s Contribution: i. If the bond issuer requires that it hold title to the Project Property, the TPL’s and SBA’s respective liens must be properly recorded before any transfer of the title to the Project Property to the bond issuer; ii. SBA’s lien position must not be subordinate to the bond issuer’s lien; and iii. The Borrower may not pay the loan made from the proceeds of the tax- exempt obligation at a faster rate than the 504 loan unless it is approved by the D/FA or designee; In no case may a default in payment of the tax-exempt obligation result in a tax lien on the property; and In transactions where the bond issuer takes collateral other than the Project Property, SBA may, in its discretion, agree to take a subordinate lien position on that collateral. The structure of these transactions may vary from state to state and other conditions may apply.

Source: SBA SOP 50 10 8, C.Ch1.B.3 — Financing Involving Industrial Development Bonds or Industrial Revenue Bonds · source URL · snapshot 535743ffe062cc34

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Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch1-b-3/ · register sba-sop-c-ch1-b-3 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.