SISMBD Loan Law and Legal Definition

According to 13 CFR 120.1800 [Title 13 -- Business Credit And Assistance; Chapter I -- Small Business Administration; Part 120 -- Business Loans; Subpart K -- Establishment Of An SBA Direct Loan Program For Systemically Important Secondary Market Broker-Dealers (SISMBD Loan Program)], SISMBD Loan means “a direct loan made by SBA to a Systemically Important SBA Secondary Market Broker-Dealer to assist with the financing of the purchase and sale of Guaranteed Portion of loans originated, underwritten and closed under Section 7(a) of the Small Business Act. Recipients of an SISMBD loan must use the proceeds for the sole purpose of purchasing Guaranteed Portions of 7(a) loans from SBA Lenders and Individual Certificates or Pool Certificates from Registered Holders.”