Sba Form 148L PDF Details

The SBA Form 148L, known as the Unconditional Limited Guarantee, plays a crucial role for guarantors in the context of SBA loans. This form is a binding agreement where a guarantor commits to unconditionally guarantee payment of all amounts owing under a specific promissory note (referred to as the "Note"), with certain limitations set forth in the document. Each section of the form outlines detailed aspects of the guarantee, starting from a comprehensive definition of terms such as "Collateral," "Loan," and "Loan Documents," to the extent and limitations of the guarantee itself, which could be defined in terms of balance reduction, principal reduction, maximum liability, percentage, or time-based limits. Furthermore, it details the Lender's powers regarding the Note and other loan documents, the federal law underpinning the agreement, and the array of rights, notices, and defenses that the guarantor waives upon signing the document. The form also specifies the duties of the guarantor regarding the upkeep of collateral, the continuum of guarantor liability, the enforcement expenses, subrogation rights, joint and several liability among multiple guarantors, and several other aspects pivotal to understanding the guarantor's commitments and the rights reserved by the lender and the SBA. The form ends by emphasizing that the considerations for this guarantee are the loan itself or any accommodations regarding the loan, marking a comprehensive framework for guarantee agreements within the SBA lending process.

QuestionAnswer
Form NameSba Form 148L
Form Length6 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min 30 sec
Other namesomissions, presentment, unenforceable, form

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U.S. Small Business Administration

UNCONDITIONAL LIMITED GUARANTEE

SBA LOAN #

SBA LOAN NAME

GUARANTOR

BORROWER

LENDER

DATE

NOTE AMOUNT

1.GUARANTEE:

Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note, as limited below. Guarantor must pay all amounts owing under this Guarantee when Lender makes written demand upon Guarantor. Lender is not required to seek payment from any other source before demanding payment from Guarantor.

2.NOTE:

The “Note” is the promissory note dated ________________________________________ in the principal amount of

________________________________________________________________________________________ Dollars,

from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Note, and multiple notes under a line of credit.

3.DEFINITIONS:

“Collateral” means any property taken as security for payment of the Note or any guarantee of the Note.

“Loan” means the loan evidenced by the Note.

“Loan Documents” means the documents related to the Loan signed by Borrower, Guarantor or any other guarantor, or anyone who pledges Collateral.

“SBA” means the Small Business Administration, an Agency of the United States of America.

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4.PAYMENT LIMITATION: (Check only one box)

BALANCE REDUCTION: The guarantee is of all amounts owing under the Note, and will continue until the total of all amounts owing under the Note is reduced below $ _______________________ , at which time Guarantor

will be released from liability if the Note is not in default.

PRINCIPAL REDUCTION: The guarantee is of all amounts owing under the Note, and will continue until the outstanding principal balance of the Note is reduced below $ ________________________ , at which time

Guarantor will be released from liability if the Note is not in default.

MAXIMUM LIABILITY: The guarantee is limited to Guarantor’s payment of $ ____________________ .

PERCENTAGE: The guarantee is limited to Guarantor’s payment of ____________ % of all amounts owing

under the Note at the time demand is first made on Guarantor, plus the same percentage of any accrued interest and other costs charged to the Note after demand, until Guarantor fully performs this Guarantee.

TIME: The guarantee is of all amounts owing under the Note. The guarantee will continue until

_________ years after the date of the Note (the “Guarantee Period”). If Borrower is in default at the end of the

Guarantee Period, the guarantee will continue until all defaults are cured.

COLLATERAL/RECOURSE: The guarantee is limited to the amount Lender obtains from the following Collateral pledged by Guarantor:

COMMUNITY PROPERTY OR SPOUSAL INTEREST: The guarantee is limited to Guarantor’s community property or spousal interest in collateral pledged to secure the Note or any guarantee.

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5.LENDER’S GENERAL POWERS:

Lender may take any of the following actions at any time, without notice, without Guarantor’s consent, and without making demand upon Guarantor:

A.Modify the terms of the Note or any other Loan Document except to increase the amounts due under the Note;

B.Refrain from taking any action on the Note, the Collateral, or any guarantee;

C.Release any Borrower or any guarantor of the Note;

D.Compromise or settle with the Borrower or any guarantor of the Note;

E.Substitute or release any of the Collateral, whether or not Lender receives anything in return;

F.Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or without advertisement;

G.Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; and

H.Exercise any rights it has, including those in the Note and other Loan Documents.

These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender.

6.FEDERAL LAW:

When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local or state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law.

7.RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law,

A.Guarantor waives all rights to:

1)Require presentment, protest, or demand upon Borrower;

2)Redeem any Collateral before or after Lender disposes of it;

3)Have any disposition of Collateral advertised; and

4)Require a valuation of Collateral before or after Lender disposes of it.

B.Guarantor waives any notice of:

1)Any default under the Note;

2)Presentment, dishonor, protest, or demand;

3)Execution of the Note;

4)Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, acceleration, intent to accelerate, assignment, collection activity, and incurring enforcement expenses;

5)Any change in the financial condition or business operations of Borrower or any guarantor;

6)Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Note; and

7)The time or place of any sale or other disposition of Collateral.

C.Guarantor waives defenses based upon any claim that:

1)Lender failed to obtain any guarantee;

2)Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken as Collateral;

3)Lender or others improperly valued or inspected the Collateral;

4)The Collateral changed in value, or was neglected, lost, destroyed, or underinsured;

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5)Lender impaired the Collateral;

6)Lender did not dispose of any of the Collateral;

7)Lender did not conduct a commercially reasonable sale;

8)Lender did not obtain the fair market value of the Collateral;

9)Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor of the Note;

10)The financial condition of Borrower or any guarantor was overstated or has adversely changed;

11)Lender made errors or omissions in Loan Documents or administration of the Loan;

12)Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before demanding payment from Guarantor:

13)Lender impaired Guarantor’s suretyship rights;

14)Lender modified the Note terms, other than to increase amounts due under the Note. If Lender modifies the Note to increase the amounts due under the Note without Guarantor’s consent, Guarantor will not be liable for the increased amounts and related interest and expenses, but remains liable for all other amounts;

15)Borrower has avoided liability on the Note; or

16)Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents.

8.DUTIES AS TO COLLATERAL:

Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral.

9.SUCCESSORS AND ASSIGNS:

Under this Guarantee, Guarantor includes successors, and Lender includes successors and assigns.

10.GENERAL PROVISIONS:

A.ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this Guarantee, including, but not limited to, attorney’s fees and costs.

B.SBA NOT A CO­GUARANTOR. Guarantor’s liability will continue even if SBA pays Lender. SBA is not a co­ guarantor with Guarantor. Guarantor has no right of contribution from SBA.

C.SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral until the Note is paid in full.

D.JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly and severally liable.

E.DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral.

F.FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires.

G.LENDER’S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without losing or impairing any of them.

H.ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee.

I.SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain in effect.

J.CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by Lender as to the Loan.

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11. STATE­SPECIFIC PROVISIONS:

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12.GUARANTOR ACKNOWLEDGMENT OF TERMS.

Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and this Guarantee, including all waivers.

13.GUARANTOR NAME(S) AND SIGNATURE(S):

By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee.

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How to Edit Sba Form 148L Online for Free

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In an effort to finalize this form, ensure you provide the necessary details in every field:

1. The presentment necessitates specific information to be entered. Be sure the following blanks are filled out:

Filling in segment 1 in 148

2. Once your current task is complete, take the next step – fill out all of these fields - NOTE, The Note is the promissory note, Dollars, from Borrower to Lender It, DEFINITIONS, Collateral means any property, Loan means the loan evidenced by, Loan Documents means the documents, SBA means the Small Business, SBA Form L, and Page with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Stage no. 2 for filling out 148

3. This next part is mostly about BALANCE REDUCTION The guarantee is, of all amounts owing under the, PRINCIPAL REDUCTION The guarantee, outstanding principal balance of, MAXIMUM LIABILITY The guarantee is, The guarantee is limited to, PERCENTAGE amounts owing under the, of all, TIME The guarantee is of all, and years after the date of the Note - complete these fields.

The guarantee is limited to, TIME The guarantee is of all, and of all amounts owing under the of 148

Many people often make mistakes when filling in The guarantee is limited to in this section. Ensure you go over everything you enter here.

4. This next section requires some additional information. Ensure you complete all the necessary fields - COLLATERALRECOURSE The guarantee, and COMMUNITY PROPERTY OR SPOUSAL - to proceed further in your process!

COLLATERALRECOURSE The guarantee, COMMUNITY PROPERTY OR SPOUSAL, and COLLATERALRECOURSE The guarantee of 148

5. While you reach the conclusion of the form, there are actually just a few more things to complete. Mainly, STATESPECIFIC PROVISIONS should be done.

Filling in part 5 of 148

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