Eidl Loan Authorization Agreement Promissory Note And Security Agreement

This agreement includes access to the franchisor`s books, a 30-day delay for The Lender to terminate the franchise agreement, which gives the lender the opportunity to heal, and the deferral of the franchise fee if the loan is late. If these requirements cannot be met, they may be removed if the credit effects are minimal if these agreements are not concluded. DEFINITIONS: A) “collateral” means any quality taken as collateral for the payment of this note or a guarantee of that note. B) “guarantor”: any person or entity that signs a guarantee of payment for this communication. C) “loan documents,” the documents relating to this loan signed by the borrower, a guarantor or any person who has pledged collateral. Life and/or disability insurance are not required for all credits, but the lender should require life or disability insurance if there are doubts about the survival of the business without an individual or a small group of people who take over the small business. Where life or disability insurance is considered prudent, the lender may accept an existing or new decreasing COLLATERAL ASSIGNMENT or universal life insurance. LENDER SHOULD NOT BE DESIGNATED AS A BENEFICIARY. The “SBA credit name” and the borrower are generally not the same. Under the SBA credit name agreement, the borrower`s name is the last option for the credit name SBA. If any of the names have changed since the loan was approved, the lender must notify the SBA and document the changes on the authorization.

With the exception of SBAExpress loans, lenders must use the SBA forms covered in Section D of the authorization. Replacements are not allowed. Lenders can use computer-generated versions of mandatory SBA forms, as long as they are accurate reproductions. These forms are as follows: If you use the assistant, if the loan is structured into an EPC/OC loan, activate the assistant`s checkbox that indicates that the borrower is a CEP. (If the OC is designated only as a co-borrower, the authorization does not include the allocation of rent provisions for EPC/OC loans in the collateral sector and does not address the requirements applicable to borrowers and OCs in the remainder of the authorization. Lenders will often want to limit the borrower`s ability to pay other creditors, while loan 7 (a) has not yet been granted to obtain cash flow. In these cases, the lender may use Form SBA 155, the confirmation agreement, to exercise control over the borrower`s ability to pay its other creditors. When using form SBA 155, the lender must remember five important points: if the company used working capital to buy hard capital, these funds can be repaid to the company (not the owner) on the proceeds of the SBA loan, with proper documentation. The authorization lists any state-specific language that must be included in the guarantee or other credit documents if the guarantor or borrower resides in that state. When a borrower or guarantor comes to another state before being a lender, the lender must comply with all appropriate national requirements and add these requirements to the authorization and all other necessary documents prior to the closing of the loan.