An SBA 159 form must be completed for each representative the borrower must hire to help him obtain financial assistance. This requirement applies to any person (or business) mandated by the borrower as part of its application, particularly credit conditioners. When a borrower uses the services of a lawyer and an accountant, each of them must complete a separate Form 159. Any agent paid directly by the lender and not by the borrower (directly or indirectly) is not required to complete a Form 159. Permission may require an assessment of the real estate or equipment. An valuation is for collateral home loans, but not financed by the SBA loan, unless the property is the “primary guarantee” for the loan. Real estate is considered “primary collateral” for loans whose assets to be financed cover less than 50% of collateral. ” (1) all personal guarantee provisions on advances and loans of at least $200,000 during the period covered for all applicants; …” 3. The undersigned requires that the language of this certificate be included in contracting documents for all subcontractors at all stages (including subcontracting, sub-subsidies and subsidy contracts, loans and cooperation contracts), and that all subcontractors certify and disclose it. Before the first payment, the lender must ensure that the borrower has received adequate insurance coverage, as described below. The lender must also ensure that the insurance remains in effect for the duration of the loan: the lender can calculate the maturity date of the loan either from the date of the loan or from the date of the first disbursement. Keep in mind that if the use of the product changes between the date the loan is approved and the date the lender is ready to close the loan, it may be necessary to recalculate the maturity date and change 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: after receiving the IRS transcript, the lender must compare it with the financial statements submitted by the borrower prior to payment. In the event of a significant discrepancy, the lender must notify the SBA and not distribute the proceeds of the loan until the spread has been corrected.