[Federal Register Volume 65, Number 225 (Tuesday, November 21, 2000)]
[Notices]
[Pages 69986-69988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29561]
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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 #3.
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SUMMARY: This notice announces the Small Business Administration's
(``SBA'') intention to sell approximately 19,200 secured and unsecured
business and disaster assistance loans, (collectively referred to as
the ``Loans''). This is SBA's third sale in its Asset Sales Program and
the second sale that includes disaster assistance loans, which includes
both business and consumer loans. The total unpaid principal balance of
the Loans is approximately $1.15 billion (U.S.). SBA previously
guaranteed some of the Loans under various sections of the Small
Business Act, as amended, 15 U.S.C. 631 et seq. or the Small Business
Investment Act, as amended, 15 U.S.C. 695 et seq. Any SBA guarantees
that might have existed at one time have been paid and no SBA guaranty
is available to the successful bidders in this sale. The majority of
the loans were originated from and are serviced by SBA. The collateral
for the secured Loans includes commercial and residential real estate
and other businesses and personal property located nationwide. This
notice also summarizes the bidding process for the Loans.
DATES: The Bidder Information Package will be available to qualified
bidders beginning on or about October 3, 2000. The Bid Date is
scheduled for December 5, 2000, and closings are scheduled to occur
between December 15, 2000 and December 29, 2000. These dates are
subject to change at SBA's discretion.
ADDRESSES: Bidder Information Packages will be available to qualified
bidders from SBA's Transaction Financial Advisor, Hanover Capital
Partners Ltd. (``Hanover''). Bidder Information Packages will only be
made available to parties that have submitted a completed
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 www.sba.gov/assets/sale3.html or by calling (877) 457-6754.
The completed Confidentiality and Bidder Qualification Statement should
be sent to the attention of Kathryn Merk, SBA Loan Sale 3, by fax, at
(732) 572-5959 and mailed, to Hanover Capital Partners Ltd., 100
Metroplex Drive, Suite 301, Edison, NJ 08817.
The Due Diligence Facility is scheduled to open on or about October
3, 2000 and close on or about December 4, 2000. These dates are subject
to change at SBA's discretion.
FOR FURTHER INFORMATION CONTACT: Margaret L. Hawley, Program Manager,
Small Business Administration, 409 Third Street, SW, Washington, DC
20416; 202-401-8234. This is not a toll free number. Hearing or speech-
impaired individuals may access this
[[Page 69987]]
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 19,200
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 loan pools 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
and pool descriptions is contained in the Bidder Information Package.
SBA will offer interested persons an opportunity to bid competitively
on loan pools, 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, U.S. Virgin Islands, Guam and other Pacific 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 bid forms, a non-negotiable loan sale agreement
prepared by SBA (``Loan Sale Agreement''), specific bid instructions,
as well as pertinent loan information by loan pool such as total
outstanding unpaid principal balance, interest rate, remaining term,
loan to value, aggregate payment history and collateral information
including geographic location and type. The Bidder Information Package
also includes CD-ROMs that contain information pertaining to the Loans.
The Bidder Information Package will be available approximately 9
weeks prior to the Bid Date. It will contain 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 copy of the Confidentiality
Agreement and a Bidder Qualification Statement to the address specified
in the ADDRESSES section of this notice.
Prior to the Bid Date, one or more Bidder Information Package
Supplements will be mailed to all recipients of the original Bidder
Information Package. The final list of loans included in Sale #3 will
be contained in a Bidder Information Package Supplement as well as any
final instructions for the sale.
Deposit and Liquidated Damages
Each bidder must include with its bid a deposit equal to 10 percent
of the amount of the bidder's highest bid. If a successful bidder fails
to close in accordance with the terms of the Loan Sale Agreement, SBA
shall retain the deposit as liquidated damages.
Due Diligence Facility
A bidder due diligence period will commence on or about October 3,
2000. During the bidder due diligence period, a non-refundable
assessment of $1,000 US (the Due Diligence Assessment) entitles
qualified bidders to receive the Due Diligence CD-ROM, and enables
qualifed bidders to access an imaged database of file documents
relating to the Loans (``Asset Review Files'') either off-site
electronically, by visiting SBA's Due Diligence Facility, or both.
Alternatively, for a non-refundable assessment of $500 US, qualified
bidders may review the Asset Review Files by visiting the Due Diligence
Facility located at 499 South Capital, SW, Suite 300, Washington, DC
20003. Bidders that have paid the due diligence assessment of $500 US
will also receive the Due Diligence CD-ROM that contains due diligence
materials such as loan payment history and updated third party reports.
Specific instructions for accessing information in electronic
format or making an appointment to visit the Due Diligence Facility are
included in the Bidder Information Package.
SBA Reservation of Rights
SBA reserves the right to remove loans from the sale at any time
prior to the Bid Date, and add loans prior to the Cut-Off Date for any
reason and without prejudice to its right to include any loans in a
later sale. SBA also reserves the right to terminate this sale at any
time prior to the Bid Date.
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 wherein 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 an 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, either in connection with the
Loans, this sale or the development of SBA's Asset Loan Sales Program.
(4) Any individual who 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, either in connection with the Loans, with
this sale or the development of SBA's Asset Sales 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.
Loan Sale Procedure
SBA plans to use a competitive sealed bid process as the method to
sell the Loans. SBA believes this method of sale optimizes the return
on the sale of Loans and attracts the largest field of interested
parties. This method also provides the quickest and most efficient
vehicle for the 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 SBA Sale #3 and does not establish agency
procedures and policies for other loan sales. If there are any
conflicts between
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this Notice and the Bidder Information Package, the Bidder Information
Package shall prevail.
Dated: November 2, 2000.
LeAnn M. Oliver,
Acting Associate Administrator for Financial Assistance.
[FR Doc. 00-29561 Filed 11-20-00; 8:45 am]
BILLING CODE 8025-01-U