###### Editorial Note on Part 120

#### Editorial Note:

Nomenclature changes to part 120 appear at 72 FR 50039, Aug. 30, 2007.

#### § 120.802 Definitions.

The following terms have the same meaning wherever they are used in this subpart. Defined terms are capitalized wherever they appear.

*Area of Operations* is the geographic area where SBA has approved a CDC's request to provide 504 program services to small businesses on a permanent basis. The minimum Area of Operations is the State in which the CDC is incorporated.

*Central Servicing Agent* (CSA) is an entity that receives and disburses funds among the various parties involved in 504 financing under a master servicing agent agreement with SBA.

*Certificate* is a document issued by SBA or its agent representing ownership of all or part of a Debenture Pool.

*Debenture* is an obligation issued by a CDC and guaranteed 100 percent by SBA, the proceeds of which are used to fund a 504 loan.

*Debenture Pool* is an aggregation of Debentures.

*Designated Attorney* is the CDC closing attorney that SBA has approved to close loans under an expedited closing process for a Priority CDC.

*Investor* is an owner of a beneficial interest in a Debenture Pool.

*Job Opportunity* is a full time (or equivalent) permanent job created within two years of receipt of 504 funds, or retained in the community because of a 504 loan.

*Lead SBA Office* is the SBA District Office designated by SBA as the primary liaison between SBA and a CDC and with responsibility for managing SBA's relationship with that CDC.

*Local Economic Area* is an area, as determined by SBA, that is in a State other than the State in which an existing CDC (or an applicant applying to become a CDC) is incorporated, is contiguous to the CDC's existing Area of Operations (or the applicant's proposed Area of Operations) of its State of incorporation, and is a part of a local trade area that is contiguous to the CDC's Area of Operations (or applicant's proposed Area of Operations) of its State of incorporation. Examples of a local trade area would be a city that is bisected by a State line or a metropolitan statistical area that is bisected by a State line.

*Multi-State CDC* is a CDC that is incorporated in one State and is authorized by SBA to operate as a CDC in a State contiguous to its State of incorporation beyond any contiguous Local Economic Areas.

*Net Debenture Proceeds* are the portion of Debenture proceeds that finance eligible Project costs (excluding administrative costs).

*Priority CDC* is a CDC certified to participate on a permanent basis in the 504 program (see § 120.812) that SBA has approved to participate in an expedited 504 loan and Debenture closing process.

*Project* is the purchase or lease, and/or improvement or renovation of long-term fixed assets by a small business, with 504 financing, for use in its business operations.

*Project Property* is one or more long-term fixed assets, such as land, buildings, machinery, and equipment, acquired or improved by a small business, with 504 financing, for use in its business operations.

*Third Party Loan* is a loan from a commercial or private lender, investor, or Federal (non-SBA), State or local government source that is part of the Project financing.

*Underwriter* is an entity approved by SBA to form Debenture Pools and arrange for the sale of Certificates.

[61 FR 3235, Jan. 31, 1996, as amended at 64 FR 2118, Jan. 13, 1999; 65 FR 42632, July 11, 2000; 68 FR 57980, Oct. 7, 2003]