SBA SOP 50 10 8, C.Ch1.B.4 — Financing Involving Historic Rehabilitation Tax Credits
Verbatim text of SBA SOP 50 10 8 section C.Ch1.B.4 (Financing Involving Historic Rehabilitation Tax Credits), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, C.Ch1.B.4 — Financing Involving Historic Rehabilitation Tax Credits — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 C.Ch1.B.4
4. Financing Involving Historic Rehabilitation Tax Credits Under IRS regulations (Internal Revenue Code § 50), the owner of property eligible for historic rehabilitation tax credits may lease the property, and transfer the historic rehabilitation tax credits, to another party (the “Tax Credit Investor”). SBA may participate in Projects involving such tax credits under the following conditions: In such situations where the Borrower is the owner of the property eligible for the historic rehabilitation tax credits, the Project Property may be leased by the Borrower to the Tax Credit Investor and then must be simultaneously subleased back from the Tax Credit Investor to the Borrower. The term of the sublease must be equal to the term of the lease. The transfer of the rehabilitation tax credits from the Borrower to the Tax Credit Investor must comply with all applicable IRS requirements. Copies of the lease and the sublease that will be executed by the Borrower and the Tax Credit Investor must be submitted with the 504 application. The executed copies of both leases must be submitted for review (including legal review by SBA counsel) prior to closing. This review will be limited to ensuring that the terms of the two leases are equal. SBA’s lien on the Project Property must not be subordinate to the lease between the Borrower and the Tax Credit Investor. The loan may not be structured as an EPC/OC loan. The structure of these transactions may vary case-by-case, and CDCs and the SLPC should consult with SBA Counsel and OCA for additional guidance. SBA may also participate in projects where the Borrower transfers State rehabilitation tax credits if such projects satisfy all applicable State requirements and the other requirements set forth above. C. ELIGIBLE USES OF PROCEEDS 13 CFR §§ 120.882 - 120.884 CDCs must always start by reviewing the contents of Section A, Core Requirements for all 7(a) and 504 Loans.
Operationalizing SBA SOP 50 10 8, C.Ch1.B.4 — Financing Involving Historic Rehabilitation Tax Credits
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Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch1-b-4/
· register sba-sop-c-ch1-b-4 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.