R -- Fiscal and Transfer Agent Loan Services

The 7(a) Guaranteed Loan program is the primary federal lending program devoted to small business in the United States. Established under Section 7(a) of the Small Business Act of 1953, as amended, the program extends a full faith and credit guarantee of the U.S. government to lenders that make small business loans pursuant to SBA rules and regulations. This program currently provides guarantees on loans up to $2.0 million, and a maximum guarantee amount of $1.5 million. Today, the 7(a) portfolio of loans exceeds 300,000 accounts with an outstanding gross principal balance of $46.5 billion. The U.S. Small Business Administration (SBA) has a requirement for a Fiscal and Transfer Agent to facilitate the receipt and recordation of guaranteed interests in loan payments from lending institutions participating in the SBA 7(a) Guaranteed Loan program and to conduct a primary and secondary market in the Guaranteed Interests of individual loans and certificates guaranteed by the SBA in accordance with regulations issued by SBA. The requirement includes custodial care and safekeeping services for documents relating to structured credit facilities and loan portfolio securitization instruments involving SBA loans, and to assume loan receipt, recordation and program reporting functions to SBA for those lender participants no longer in operations. The Contractor shall perform the following services: a. Maintain and operate a fiscal and transfer agency system ("System"); b. Serve as a central registry of owners of Guaranteed Interests ("Registered Holders') in SBA guaranteed loans; c. On behalf of SBA, execute and deliver to each authorized Registered Holder either (i) a Guaranteed Interest Certificate ("Certificate") in paper or book entry form representing an ownership interest in an individual Guaranteed Interest or (ii) a Guaranteed Loan Pool Certificate (also defined as "Certificate") in paper or book entry form representing an ownership interest in a pool of Guaranteed Interests, as the case may be; d. Accept remittances from lenders on behalf of the SBA with respect to Guaranteed Interests of SBA loans; e. Record the date of receipt and the amount received; f. Determine if the amounts received for each guaranteed loan match the amount reported on the SBA Form 1502; g. Provide a statement of the outstanding balances of Guaranteed Interests as they appear from the Contractor?s books and records; h. Furnish SBA with timely and current reports on program activity as directed by the COTR and which may be changed from time to time, as the SBA may reasonably require; and i. Collect and transfer to the SBA trust account any program fees (basis point ongoing guaranty fees) received and identified by the Contractor up to the second business day prior to the l5th calendar day of the month or the next business day if the l5th day is not a business day ("Payment Date"). This fees funds transfer will be on the 14th day following the Payment Date or the next business day if the 14th is not a business day. Until such fees funds transfer takes place, they shall reside in a trust account and all earnings thereon shall be for the benefit of the Contractor. The SBA intends to issue a contract for a total of five years.