[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR120.223]

[Page 232]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 120_BUSINESS LOANS--Table of Contents
 
                Subpart B_Policies Specific to 7(a) Loans
 
Sec.  120.223  Subsidy recoupment fee payable to SBA by Borrower.

    (a) The subsidy recoupment fee is payable to SBA when:
    (1) Loan has a maturity of 15 years or more.
    (2) Borrower makes a voluntary prepayment (or several prepayments in 
the aggregate) during any one of the first three successive 12 month 
periods following the first disbursement of the loan. Prepayment is 
defined as a payment of principal in excess of the amount due according 
to the amortization schedule.
    (3) The prepayment (or several prepayments in the aggregate) is more 
than 25 percent of the highest outstanding principal balance of the loan 
in any one of the first three successive 12 month periods following the 
first disbursement.
    (b) When all the conditions above exist, the following subsidy 
recoupment fees apply:
    (1) If the prepayment is made during the first 12 month period after 
first disbursement, the charge is 5 percent of the total amount of all 
prepayments made during such period;
    (2) If the prepayment is made during the second 12 month period 
after first disbursement, the charge is 3 percent of the total amount of 
all prepayments made during that period; and
    (3) If the prepayment is made during the third 12 month period after 
first disbursement, the charge is 1 percent of the total amount of all 
prepayments made during that period.

[68 FR 51680, Aug. 28, 2003]