[Federal Register Volume 67, Number 110 (Friday, June 7, 2002)]
[Notices]
[Pages 39462-39464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14245]


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SMALL BUSINESS ADMINISTRATION


Notice of Sale of Business and Disaster Assistance Loans

AGENCY: Small Business Administration.

ACTION: Notice of sale of Business and Disaster Assistance Loans--Loan 
Sale 6.

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SUMMARY: This notice announces the intention of the Small Business 
Administration (SBA) to sell approximately 30,000 secured and unsecured 
business and disaster assistance loans, (collectively referred to as 
the Loans). The total unpaid principal balance of the Loans is 
approximately $690 million. This is the sixth sale of loans originated 
under the SBA's Business Loan Programs and the fifth sale of Disaster 
Assistance Loans (both business and home loans). SBA previously 
guaranteed some of the Loans under various sections of the Small 
Business Act, as amended, 15 U.S.C. 695 et seq.; however, any SBA 
guarantees have been paid and no SBA guaranty is available to the 
successful bidder in this sale. The majority of the Loans were 
originated and are serviced by SBA. The collateral for the secured 
Loans includes commercial and residential real estate and other 
business and personal property located nationwide. This notice also 
summarizes the bidding process for the Loans.

[[Page 39463]]


DATES: The Bidder Information Package is scheduled to be available to 
qualified bidders as of June 5, 2002. The Bid Date is scheduled for 
August 6, 2002, and closings are scheduled to occur between August 15 
and August 31, 2002. These dates are subject to change at SBA's 
discretion.

ADDRESSES: Bidder Information Packages will be available from the SBA's 
Transaction Financial Advisor, Cushman & Wakefield, Inc. (C&W). Bidder 
Information Packages will only be made available to parties that have 
submitted a completed and executed Confidentiality Agreement and Bidder 
Qualification Statement and have demonstrated that they are qualified 
bidders. The Confidentiality Agreement and Bidder Qualification 
Statement are available on the SBA website at http://www.sba.gov/assets/current_sale/sale6.html or by calling the SBA Loan Sale 
6 Center toll-free at (866) 822-6102. The completed and 
executed Confidentiality and Bidder Qualification Statement can be sent 
to the attention of Paul Badamo, SBA Loan Sale 6, by either 
fax, at (202) 293-9049, or by mail, to Cushman & Wakefield, 1801 K 
Street, NW, Suite 1100-L, Washington, DC 20006.
    The Due Diligence Facility is scheduled to open on June 10, 2002 
and will close on August 5, 2002. These dates are subject to change at 
SBA's discretion.

FOR FURTHER INFORMATION CONTACT: Mel O. Bradburn, Program Manager, 
Small Business Administration, 409 Third Street, SW, Washington, DC 
20416: 202-205-2415. This is not a toll free number. Hearing or speech-
impaired individuals may access this number via TDD/TTY by calling the 
Federal Information Relay Service's toll-free number at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: SBA intends to sell approximately 30,000 
secured and unsecured business and disaster assistance loans, 
collectively referred to as the ``Loans''. The Loans include 
performing, sub-performing and non-performing loans. The Loans will be 
offered to qualified bidders in pools or blocks that will be based on 
such factors as performance status, collateral status, collateral type 
and geographic location of the collateral. A list of the Loans, loan 
pools, pool descriptions, blocks and block descriptions is contained in 
the Bidder Information Package. SBA will offer interested persons an 
opportunity to bid competitively on loan pools and/or blocks, subject 
to conditions set forth in the Bidder Information Package. SBA shall 
use its sole discretion to evaluate and determine winning bids. No 
loans will be sold individually. The Loans to be sold are located 
throughout the United States as well as Puerto Rico and the U.S. Virgin 
Islands.
    The Bidding Process: To ensure a uniform and fair competitive 
bidding process, the terms of sale are not subject to negotiation. SBA 
will describe in detail the procedure for bidding on the Loans in the 
Bidder Information Package, which will include a non-negotiable loan 
sale agreement prepared by SBA (``Loan Sale Agreement''), specific bid 
instructions, as well as pertinent loan pool and block information such 
as total outstanding unpaid principal balance, interest rate, maturity 
term, aggregate payment history and collateral information including 
geographic location and type. The Bidder Information Package also 
includes CDs that contain information pertaining to the Loans.
    The Bidder Information Package will be available approximately 9 
weeks prior to the Bid Date. It contains procedures for obtaining 
supplemental information about the Loans. Any interested party may 
request a copy of the Bidder Information Package by sending a written 
request together with a duly executed Confidentiality Agreement and a 
Bidder Qualification Statement to the address specified in the 
ADDRESSES section of this notice.
    Prior to the Bid Date, a Bidder Information Package Supplement will 
be mailed to all recipients of the original Bidder Information Package. 
It will contain the final list of loans included in Sale 6 and 
any final instructions for the sale.
    Deposit and Liquidated Damages: Each bidder must submit a deposit 
as specified in the Bidder Information Package. If a successful bidder 
fails to close within the time period specified in the Loan Sale 
Agreement, SBA will retain the deposit as liquidated damages.
    Due Diligence Facility: The bidder due diligence period begins on 
June 10, 2002. During the bidder due diligence period, qualified 
bidders may, for a non-refundable assessment of $1,000 US dollars, 
review all asset file documents that have been imaged onto a database 
by visiting the due diligence facility located at 499 South Capital 
Street, SW, Suite 300; Washington, DC 20003 and/or via remote access as 
well as receive the due diligence CDs. Bidders may request only the due 
diligence CDs that contain substantial due diligence materials such as 
loan payment history and updated third party reports and visit the due 
diligence facility for a non-refundable assessment of $500 US dollars.
    Specific instructions for ordering information in electronic format 
or making an appointment to visit the due diligence facility are 
included in the Bidder Information Package and on the SBA website 
(http://www.sba.gov/assets/current_sale/sale6.html).
    SBA Reservation of Rights: SBA reserves the right to add or remove 
loans from the sale as set forth in the Bidder Information Package.
    SBA also reserves the right to terminate this sale in whole or in 
part at any time.
    SBA reserves the right to use its sole discretion to evaluate and 
determine winning bids. SBA also reserves the right in its sole 
discretion and for any reason whatsoever to reject any and all bids.
    SBA reserves the right to conduct a ``best and final'' round of 
bidding in which bidders will be given the opportunity to increase 
their bids. A best and final round shall not be construed as a 
rejection of any bid or preclude SBA from accepting any bid made by a 
bidder.
    Ineligible Bidders: The following individuals and entities (either 
alone or in combination with others) are ineligible to bid on the Loans 
included in the sale:
    (1) Any employee of SBA, any member of any such employee's 
household and any entity controlled by a SBA employee or by a member of 
such employee's household.
    (2) Any individual or entity that is debarred or suspended from 
doing business with SBA or any other agency of the United States 
Government.
    (3) Any contractor, subcontractor, consultant, and/or advisor 
(including any agent, employee, partner, director, principal, or 
affiliate of any of the foregoing) who will perform or has performed 
services for, or on-behalf of SBA in connection with the Loans, this 
sale or the development of SBA's loan sale program.
    (4) Any individual that was an employee, partner, director, agent 
or principal of any entity, or individual described in paragraph (3) 
above at any time during which the entity or individual performed 
services for, or on behalf of SBA in connection with the Loans, this 
sale or the development of SBA's loan sale program.
    (5) Any individual or entity that has used or will use the 
services, directly or indirectly, of any person or entity ineligible 
under any of paragraphs (1) through (4) above to assist in the 
preparation of any bid in connection with this sale.

[[Page 39464]]

    Loan Sale Procedure: SBA will use a competitive online block 
auction process as the method to sell the majority of the Loans. SBA 
will offer certain pools of Loans in an online designated loan pool 
auction format. SBA believes a competitive bid auction sale optimizes 
the return on the sale of loans and attracts the largest field of 
interested parties. A competitive bid auction also provides the 
quickest and most efficient vehicle for SBA to dispose of the Loans.
    Post Sale Servicing Requirements: The Loans will be sold servicing 
released. Purchasers of the Loans and their successors and assigns will 
be required to service the Loans in accordance with the applicable 
provisions of the Loan Sale Agreement for the life of the Loans. In 
addition, the Loan Sale Agreement establishes certain requirements that 
a servicer must satisfy in order to service the Loans.
    Scope of Notice: This notice applies to Loan Sale 6 and 
does not establish agency procedures and policies for other loan sales. 
If there are any conflicts between the Bidder Information Package and 
this Notice, the Bidder Information Package shall prevail.

    Dated: May 30, 2002.
LeAnn M. Oliver,
Acting Associate Administrator for Financial Assistance.
[FR Doc. 02-14245 Filed 6-6-02; 8:45 am]
BILLING CODE 8025-01-P