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	Term	A/K/A	Definition
1	10 day	ten day, prepayment notification	Lender is required to provide written notification of a borrower's intent to prepay a Secondary Market loan at least ten business days prior to the prepayment date. See paragraph 15 of SBA Form 1086.
	1086	Form 1086, Secondary Market Participation Guide	Secondary Participation Guaranty Agreement. This agreement lays out the rights and responsibilities of all parties on SBA loans sold on the Secondary Market. The agreement signed by the seller, the buyer, and Colson on behalf of the SBA.
	1086 execution form		This document is sent to the lender after a loan settles on the Secondary Market to confirm some of the loan's characteristics.
	1088	SBA Form 1088	Form of Detached Assignment. This form is required to transfer the guaranteed portion of an SBA loan from one registered holder to another. It is also used to transfer SBA Pools and RMLPs. This form is for SBA-related products only.
	1099		A form that is sent to investors every January that provides the total interest paid to the investor in the prior year. The investor needs to include this information in their tax filing.
	1175		Form used by lenders to report loan status information to SBA on a quarterly basis. This reporting was incorporated into the new SBA Form 1502 making the 1175 obsolete.
	1454		SBA form used for pool submission and verification of two (2) pre-authorized signatories. Required fields include company information about the pool assembler and a list of potential loans to be placed in the pool.
	1502	Form 1502	Remittance form used to report to FTA on SBA 7(a) loans.
	1502 Connection	Form 1502	Web application that allows a lender to report SBA 7(a) loans over the Internet through the Colson website.
5	529B	loan authorization	Loan authorization agreement. SBA's written agreement detailing the terms and conditions under which SBA will make or guarantee a loan.
A	accrual basis	basis	Accrual method used to calculate interest. SBA currently allows lenders to use an Actual Days/365 or 30/360 accrual basis. SBA loans sold prior to 1991 may have Actual Days/360.
	accrued interest		Interest that is due, but has not yet been paid by the borrower. On a new settlement, an investor can purchase this interest from the lender.
	active pool assemblers list	pool assemblers list	The list of institutions that are authorized by SBA to combine individual loans into pools. The most current list is available on SBA's website. There is a link to that list on Colson website.
	adjustment frequency		The regularity of interest rate changes on a particular rate. The most common frequencies are monthly, quarterly, annually.
	allonge	amendment, modification agreement	A document that details a change in the original terms of the borrower's note. When used for documentation purposes, Colson requires a copy signed by the lender and the borrower.
	amendment	allonge, modification agreement	A document that details a change in the original terms of the borrower's note. When used for documentation purposes, Colson requires a copy signed by the lender and the borrower.
	amortization		The gradual reduction of the principal balance on a loan through regular payments that are sufficient to cover principal and interest.
	assumption	confirmation	The takeover of a loan obligation from a current borrower by another individual or business. Processing of an assumption request may or may not involve a name change on Colson's system
	audit request/audit confirmation		A request to provide a principal balance and/or other loan information as of a certain date.
B	bank	lender, L/S, servicer	Entity that made the loan to the borrower or is currently receiving payments from the borrower and forwarding the corresponding portions or fees to the FTA. For our purposes, a lender can be a bank, a non-bank lender, or a servicing company.
	bank fee	servicing fee, lender fee, L/S fee	The fee retained by the lender on loans sold on the Secondary Market to compensate them for continuing to service the loan.
	bank transfer		The transfer of a loan (or loans) from one lender to another. This is done for both sold and unsold loans
	basis	accrual basis	Accrual method used to calculate interest. SBA currently allows lenders to use an Actual Days/365 or 30/360 accrual basis. SBA loans sold prior to 1991 may have Actual Days/360.
C	cancelled loan		The nullification or retraction of an approved loan prior to disbursement.
	capitalization of interest	capitalization	The act of converting past-due interest into principal, thereby advancing the interest paid to date and raising the balance. This is not permitted on SBA loans sold on the Secondary Market.
	certificate	cert	Document that represents an investor's interest in the guaranteed portion of a loan or SBA Pool.
	certificate rate	net rate	The rate paid to the holder of an individual or pool certificate. The net rate is equal to the note rate minus all fees.
	claim		Request for additional funds (underpayment) or return of funds (overpayment).
	collateral changes		A collateral change can be requested on a loan on the Secondary Market. The change may be a release, a substitution, or a subordination. This does not require investor approval. An acknowledgement letter will be sent to the lender, if requested.
	Colson fee	FTA fee	Fee taken by the Fiscal and Transfer Agent on loans sold in the Secondary Market. The fee is generally .125% (.145% if the loan has an originator fee).
	confirmation	audit confirmation, confirm, confirmation of sale	1. Confirmation of sale. A document provided by an Investor that details the wiring instructions and payment information for the transfer of funds on a new loan settlement. 2. Audit confirmation. A request to provide a principal balance and/or other loan information as of a certain date.
	confirmation of sale	confirm, confirmation	A document provided by an Investor that details the wiring instructions and payment information for the transfer of funds on a new loan settlement.
	constant prepayment rate	CPR	Constant Annual Prepayment Rate Assumption- Annualized monthly percentage prepayment rate. This data is collected and updated on a monthly basis by SBA, but it is distributed by Colson upon request.
	COOF		Confirmation of Originator Fee- A certificate representing ownership of an interest only strip on a loan.
	coupon; coupon rate		The net rate paid to the registered holder of a certificate, often expressed in terms of prime (ex., prime + 1.0%)
D	debenture		A financial term referring to unsecured debt backed by the borrower's integrity and evidenced by a certificate of debt.
	default		The failure of the borrower to make payments of principal and/or interest on the due date as provided by the terms and conditions of the note. The criteria for a loan to appear on the default report that Colson sends to SBA is having an interest paid to date that was 60 days past due at the beginning of the month in which a default report is sent to SBA. Example: Report sent to SBA 5/22. Any loan with a paid to date 2/28 (more than 60 days prior to 5/1) appears on the report.
	default report		A report sent to each SBA office on a monthly basis which lists loans serviced by that office that are in default status. It also includes a report listing all loans that are past maturity that still have a principal balance.
	deferment	interest only payment, moratorium	A temporary suspension of payments (full payment or principal portion). SBA allows a lender to grant a one time deferment of up to three consecutive months without prior approval of the investor. All other deferments must be approved by the investor or the agency.
	delinquent		The failure of the borrower to make payments of principal and/or interest on the due date as provided by the terms and conditions of the note resulting in the loan being past due.
	delta	spread	Percentage of interest above or below the prime rate on an individual loan. It can used in reference to the borrower's rate or the investor's net rate.
	depositary receipt		A financial instrument provided by Colson that guarantees an investor will receive payment on a regular basis regardless of whether or not the lender remitted the regularly scheduled payment.
	disbursement		The payout of loan funds to the borrower.
	discrepancy letter		A letter sent to lenders that details SBA loans that have discrepancies that are outside of parameters (two days and/or $10.00).
	due date		The date that payments on SBA Secondary Market loans received by lenders in the previous month are due to Colson. The due date is the 3rd of the month (or next business day, if the 3rd is not a business day) plus two business days grace period. A listing for the current year can be found on the website in the 1502 Reporting section.
E	electronic download		A file sent to an originator or investor via e-mail that contains payment information from their monthly payout statement or from late payment statements sent during a particular month. The file can be in a text format or an Excel format. There is a subscription cost attached to this service.
F	face amount	face value	The dollar amount listed on a certificate representing the original value of the underlying loan or loans.
	factor report		Investment information that is distributed by Colson on a monthly basis. It is only available for pools, not individual loans.
	FIRS #		An identification number that is used by SBA to identify lenders.
	Fiscal and Transfer Agent	FTA	Fiscal and Transfer Agent. Entity designated to be a record-keeper and payment agent for a loan or payment program. Colson is the designated Fiscal and Transfer Agent for the SBA's 7(a) loan program.
	flip-flop		The interest and principal reported by the lender is posted in reverse order (interest figure is posted as principal, principal figure is posted as interest).
	Form 1086	1086, Secondary Guaranty Participation Agreement	Secondary Market Participation Guide. This agreement lays out the rights and responsibilities of all parties on SBA loans sold on the Secondary Market. The agreement signed by the seller, the buyer, and Colson on behalf of the SBA.
	Form 1088	1088, transfer form, SBA Form 1088	Form of Detached Assignment. This form is required to transfer the guaranteed portion of an SBA loan from one registered holder to another. It is also used to transfer SBA Pools and RMLPs. This form is for SBA-related products only.
	FTA fee	Colson fee	Fee charged by the Fiscal and Transfer Agent on loans sold in the Secondary Market. The fee is currently .125% (.145% if the loan has an originator fee).
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G	GP		The ten digit loan number assigned to an SBA loan.
	guaranteed loan		A loan made by lending institution to a borrower that has an agreement that a government agency (SBA, USDA, etc.) will purchase the guaranteed portion if the borrower defaults.
	guaranty fee		Fee charged by SBA upon approval of a guaranteed loan. The fee is determined by the maturity and the dollar amount of the loan.
H	history	transcript	(Usually referred to as a transcript) A presentation of a loan's history (full or partial) which shows how Colson calculated each payment. It includes a running balance and lists the dates that each payment covers.
I	interest only strip	originator fee, originator strip, I/O strip	An interest-only portion of a loan owned by an investor.
	Investor	registered holder	Owner of the guaranteed percentage of a loan sold on the Secondary Market or owner of an SBA Pool.
	invoice		A bill that shows the amount due on a loan. Invoices are primarily used by FLAGS and Loan Accounting Services.
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L	late penalty		A penalty assessed on a Secondary Market SBA 7(a) loan that is not remitted within the timeframes established in SBA form 1502. A payment received within the month it is due must be remitted to Colson by the 3rd of the next month (or next business day) plus two business days grace. A late payment by the borrower must be remitted to Colson within two business days of receipt of collected funds.
	Lender	L/S, servicer, bank	Entity that made the loan to the borrower or is currently receiving payments from the borrower and forwarding the corresponding portions or fees to the FTA. For our purposes, a lender can be a bank, a non-bank lender, or a servicing company.
	lender exception report		A report that is automatically generated and faxed to lenders after their remittance has been processed. It details errors (exceptions) found during the processing.
	lender fee	servicing fee, bank fee, L/S fee	The fee retained by the lender on loans sold on the Secondary Market to compensate them for continuing to service the loan.
	liquidation		The sale of collateral in order to pay down the borrower's remaining obligation. On SBA loans, this is usually accompanied by non-accrual status in which the loan stops accruing interest. If the loan is in non-accrual/liquidation status it cannot be on the Secondary Market.
	loan authorization	529B	SBA's written agreement detailing the terms and conditions under which SBA will make or guarantee a loan.
	LoanLIST		A Colson web application that provides basic loan information on SBA 7(a) loans sold on the Secondary Market.
	loan status	status code	On Secondary Market loans, the status codes are: 1 (current), 2 (delinquent), 3 (pending receipt of certificate or pending SBA payoff), 4 (paid off), or 6 (deferment). On unsold loans, the status is reported by the lender on SBA Form 1502. The list of these codes is found on the form.
	L/S fee	servicing fee, bank fee, lender fee	The fee retained by the lender on loans sold on the Secondary Market to compensate them for continuing to service the loan.
	LWSJ	prime rate, Wall Street Journal Prime Rate, New York Prime	The interest rate that banks charge to their customers with the highest credit ratings. The Wall Street Journal Prime Rate is determined by the prime rate charged by 75% of the largest banks in the nation.
M	maturity acceleration		A modification of the final payment due date on the borrower's note. A maturity acceleration requires investor approval, SBA approval, and a copy of the note modification agreement.
	maturity extension		A modification of the final payment due date on the borrower's note. On SBA loans, that date cannot exceed twenty-five years beyond the date of first disbursement. A maturity extension requires investor approval, SBA approval, and a copy of the note modification agreement.
	modification agreement	allonge, amendment	A document that details a change in the original terms of the borrower's note. When used for documentation purposes, Colson requires a copy signed by the lender and the borrower.
	moratorium	deferment, interest only payment	A temporary suspension of payments (full payment or principal portion). SBA allows a lender to grant a one time deferment of up to three consecutive months without prior approval of the investor. All other deferments must be approved by the investor.
N	net rate	certificate rate	The rate paid to the holder of an individual or pool certificate. It is calculated by taking the note rate and subtracting all fees.
	New York Prime	prime rate, Wall Street Journal Prime Rate, LWSJ	The Wall Street Journal Prime Rate is sometimes referred to as "New York Prime". Occasionally, promissory notes will contain language referring to the prime rate found in the New York edition of the Wall Street Journal. The Wall Street Journal Prime Rate is determined by the prime rate charged by 75% of the largest banks in the nation.
	nominee		An entity that is set up to be the holder of certificates while leaving the customer as the actual owner.
	note	promissory note, SBA Form 147	The agreement between the lender and the borrower that lays out the terms and conditions of the loan.
	NSF	non-sufficient funds	Non-sufficient funds. When a lender requests the return of a payment, they may report the reason as NSF. This means the borrower's check has bounced.
O	originator fee	originator strip, interest only strip, I/O strip	An interest-only portion of a loan owned by an investor.
P	par		A purchase price equal the outstanding principal balance of a loan.
	partial prepayment	principal reduction	A remittance of principal greater than 20% of the outstanding balance. Prepayment notification is required, though there is currently no penalty for not providing proper notification.
	participation	sold loan, guaranteed portion	SBA 7(a) loan on which the guaranteed portion of the loan has been sold to an investor on the Secondary Market.
	paydown	payoff, prepayment	Final payment received from the lender or sent to the investor and/or originator.
	payment frequency		Refers to the schedule of payments made by the borrower. The most common frequencies are monthly (M), quarterly (Q), semi-annual (S), annual (A), seasonal or other (O).
	payment modification		A modification to the amount or the timing of the payments made by the borrower. This requires investor approval, agency approval, and a copy of the loan modification agreement.
	payoff	prepayment, paydown	Final payment received from the lender or sent to the investor and/or originator.
	payoff reversal		Reinstatement of a loan on the Secondary Market after it has been inadvertently paid off.
	payout		Monthly disbursement of funds to investors and originators. Colson has several different payouts during the month including the 7(a) payout (15th of the month), Pooling payout (25th of the month), and DR payout (30th of the month).
	pool		The guaranteed portions of individual SBA loans with similar payment characteristics are grouped together with certificates issued based on the entire group of loans.
	pool assembler		An institution that is authorized by SBA to acquire the guaranteed portions of individual loans, originates pools, and directs the FTA to issue pool certificates.
	pool assemblers list		A list compiled by SBA of those institutions currently authorized to originate pools.
	premium		A purchase price greater than the outstanding principal balance of a loan.
	prepayment	paydown, payoff	Final payment received from the lender or sent to the investor and/or originator.
	prepayment certification		This is a form signed by the lender certifying that the payoff funds are the borrower's own funds or funds from another institution. The lender is required to provide this for all Secondary Market prepayments.
	prepayment notification	ten day, 10 day	Lender is required to provide written notification of a borrower's intent to prepay a Secondary Market loan at least ten business days prior to the prepayment date. See paragraph 15 of SBA Form 1086.
	prepayment penalty		Penalty charged to the borrower for prepaying a portion or all of a loan. The terms and conditions of the penalty will be laid out in the promissory note. On SBA loans, a prepayment penalty is required for all loans approved after December 22, 2000. The criteria for determining applicability of the penalty are: a maturity greater than 15 years, prepayment is in excess of 25% of the outstanding balance, and the prepayment occurs within the first three years of the loan.
	prime rate	Wall Street Journal Prime Rate, LWSJ, New York Prime	The interest rate that banks charge to their customers with the highest credit ratings. The Wall Street Journal Prime Rate is determined by the prime rate charged by 75% of the largest banks in the nation.
	principal reduction	partial prepayment	A remittance of principal greater than 20% of the outstanding balance. Prepayment notification is required, though there is currently no penalty for not providing proper notification.
	promissory note	note, SBA Form 147	The agreement between the lender and the borrower that lays out the terms and conditions of the loan.
	PSU Online		Colson’s web-based application for establishing pools, from initial creation to final submission.
	purchaser payment statement		A document that accompanies any payment generated for an investor or originator detailing the payment information for all of the loans associated with that payment. If no payments are received for a given loan, the monthly purchaser payment statement will indicate "No payment received for this loan".
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R	rate reduction		Reduction of the interest rate paid by the borrower. This action must be approved by the Secondary Market investor unless the lender requests a matching service fee reduction.
	reallocation		A modification to the principal and interest breakdown originally reported by the lender. This can involve the receipt of additional funds from the lender, a return of funds to the lender, or the total can be equal to the total originally reported.
	reamortization	payment modification	A recalculation of the payments due from the borrower to ensure that the loan is paid off by the maturity date. A reamortization requires investor approval, agency approval, and a copy of the loan modification agreement unless the original note specifies that a reamortization can be done.
	reconciliation		The process of identifying and resolving errors and discrepancies on a loan.
	reduced fee loan		All SBA loans approved from October 1, 2002 through September 30, 2004 are subject to a fee of 25 basis points rather than 50 basis points.
	Registered Holder	Investor	Owner of the guaranteed percentage of a loan sold on the Secondary Market or owner of an SBA Pool.
	remittance		Payment. Usually used in reference to Secondary Market or fee payments.
	RMLP		Receipt for Multiple Loan Pools- An instrument offered by Colson that provides a receipt against delivery on more than one pool.
	RMOF		Receipt for Multiple Originator Fees- An instrument offered by Colson that provides a receipt against delivery on a group of originator fees. RMOFs are similar to Pools in form and function.
	revolving loan		A line of credit which may or may not have regular disbursements and payments. These loans are subject to the SBA fee if they have been guaranteed by the SBA.
S	SBA fee		A fee that is collected by the FTA and transmitted to SBA to help cover program costs. If the loan is sold on the Secondary Market, the fee is collected from the pass-through payment remitted by the lender. If the loan is not sold on the Secondary Market, the lender must remit the fee (if applicable) to the FTA. The SBA fee may be 0%, .25%, .40%, or .50%. SBA also collects a fee of one-half of any premium over 110 received by the lender when a loan is sold into the Secondary Market.
	scoop		Term used by some investors to indicate that they want all of the information available on a loan as opposed to just the balance and paid to date.
	Secondary Participation Guaranty Agreement	1086, Form 1086	This agreement lays out the rights and responsibilities of all parties on SBA loans sold on the Secondary Market. The agreement signed by the seller, the buyer, and Colson on behalf of the SBA.
	servicer		Entity that made the loan to the borrower or is currently receiving payments from the borrower and forwarding the corresponding portions or fees to the FTA. For our purposes, a lender can be a bank, a non-bank lender, or a servicing company.
	servicing fee	lender fee, bank fee, L/S fee	The fee retained by the lender on loans sold on the Secondary Market to compensate them for continuing to service the loan.
	settlement		The transfer of funds associated with the sale of the guaranteed portion of a loan into the secondary market.
	spread		Percentage of interest above or below the prime rate on an individual loan. It can be used in reference to the borrower's rate or the investor's net rate.
	sold loan	guaranteed portion, participation	SBA 7(a) loan on which the guaranteed portion of the loan has been sold to an investor on the Secondary Market.
	STAR loan		Supplementary Terrorist Activity Relief- SBA loans made to businesses adversely effected by the September 11th terrorist attacks. Eligible loans have a reduced SBA fee of twenty-five basis points for the life of the loan.
	status code	loan status	On Secondary Market loans, the status codes are: 1 (current), 2 (delinquent), 3 (pending receipt of certificate or pending SBA payoff), 4 (paid off), 6 (deferment),or 8 (transferred). On unsold loans, the status is reported by the lender on SBA Form 1502. The list of these codes is found on the form.
T	ten day	10-day, prepayment notification	Lender is required to provide written notification of a borrower's intent to prepay a Secondary Market loan at least ten business days prior to the prepayment date. See paragraph 15 of SBA Form 1086.
	transcript	history	A presentation of a loan's history (full or partial) which shows how Colson calculated each payment. It includes a running balance and lists the dates that each payment covers.
	transfer form	SBA Form 1088, Form of Detached Assignment, 1088	Form of Detached Assignment. This form is required to transfer the guaranteed portion of an SBA loan from one registered holder to another. This form is for SBA loans only. A special Form of Detached Assignment was created for non-SBA loans.
U	unreported letter		A letter sent to lenders by Colson listing all of the loans under their Lender ID which were not reported during the current cycle. The letters are sent after the second supplemental tape is sent to SBA.
	unsold loan		SBA 7(a) loan that has not been sold on the Secondary Market.
V	variance report		A semi-annual report sent that identifies gaps in interest payments and interest paid to dates on loans reported by SBA 7(a) lenders. The report is sent to lenders in June and December.
W	wire		The electronic transfer of funds from one account to another.
	Wall Street Journal Prime Rate	prime rate, New York Prime, LWSJ	The interest rate that banks charge to their customers with the highest credit ratings. The Wall Street Journal Prime Rate is determined by the prime rate charged by 75% of the largest banks in the nation.
X	X-GP		This is the status of a loan if it has been cancelled, withdrawn, paid in full, or repurchased.
Y	yield		Annual return on investment expressed in percentage form. Yield information is provided by investors on Form 1086 and Form 1088.
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