RE: SCORE Volunteer Applying for an SBA Loan
To: All SCORE Volunteers
In cases where a SCORE volunteer has at least a 10% interest in the entity submitting a loan application to the SBA, the SCORE volunteer is required to submit a waiver (via the loan providing entity) to the SBA’s Standards of Conduct Committee (SCC) to approve a loan or line of credit renewal.
Without the waiver the volunteer/loan applicant may have to resign as a SCORE mentor in order to secure their loan.
Per the SBA:
SBA’s Standards of Conduct regulations at 13 CFR § 105.302(a) generally provide that the Standards of Conduct Committee (SCC or Committee) must approve SBA Assistance “to a person if its sole proprietor, general partner, officer, director or stockholder with a 10% or more interest (or a household member) is…a SCORE volunteer.” Generally, the SCC will consider whether the particular loan will result in or create the appearance of giving preferential treatment, the loss of complete independence or impartiality, or adversely affect the confidence of the public in the integrity of the Government. In the past, the SCC has generally interpreted § 105.302 as disqualifying SCORE volunteers from receiving SBA Assistance because it would create a significant appearance problem. The SCC is only authorized to issue an eligibility decision when a loan has been processed and determined to be otherwise creditworthy. The SCC is not authorized to issue advisory or hypothetical opinions and we cannot predict the outcome of individual cases that go before the SCC for decision.
Pursuant to 13 CFR § 105.401, the SBA SCC is empowered to make decisions concerning specific requests from applicants for SBA Assistance when the Committee’s approval is required by Agency regulations. Members of the Committee include the General Counsel, who serves as the Chairman; the Chief Operating Officer; and the Chief Human Capital Officer.