Sba Form 155 PDF Details

The SBA 155 form, officially titled the STANDBY CREDITOR’S AGREEMENT by the U.S. Small Business Administration, plays a pivotal role in facilitating SBA guaranteed loans. This document details a binding agreement between a Standby Creditor—who holds an existing financial claim against a borrower—and a Lender that is considering or has decided to extend an SBA guaranteed loan to the same borrower. Essentially, it outlines the Standby Creditor's commitment not to enforce its claim, under certain conditions, in favor of the Lender's interest, effectively subordinating the creditor's loan to the new SBA guaranteed loan. Specific terms include a prohibition on the Standby Creditor from accepting principal payments (with options regarding interest payments) until the Lender’s loan is fully repaid, obliging the Standby Creditor to forward any payments received in violation of this agreement, and barring any actions against the borrower's collateral without the Lender's consent. Additional provisions ensure that the agreement remains valid through various changes, such as the transfer of the loan to a new party, adjustments to the original loan made by the Lender, and requirements for the Standby Creditor to sign necessary documentation to formalize the subordination. It's a document that underscores the collaborative, yet complex nature of financing arrangements involving multiple creditors, designed to protect the interests of all parties involved, particularly the facilitating lender.

QuestionAnswer
Form NameSba Form 155
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namessba standby, sba 155, form 155, agreement standby

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U.S. Small Business Administration

STANDBY CREDITOR’S AGREEMENT

SBA Loan #

SBA Loan Name

Standby Creditor

Standby Borrower

Lender

__________________________________________________________________________________ (Standby Borrower)

owes $____________________________________ principal and $____________________________________interest to

___________________________________________________________________________________ (Standby Creditor)

as of the date of this Agreement (Standby Loan) (Copy of Standby Note attached). To induce

__________________________________________________________________________________ (Lender) to make an

SBA guaranteed loan to Standby Borrower or guaranteed by Standby Borrower, Loan Number ______________________

in the amount of $___________________________________________________ (Lender’s Loan).

Standby Creditor agrees: (Check only one box)

1.

To accept no further payments on the Standby Loan until Lender’s Loan is satisfied

To accept interest only payments at a rate of ___________% per annum (no principal payments) on Standby Loan until

Lender’s Loan is satisfied or until notified by Lender to stop accepting payments,

To accept payments of principal and interest at the rate of ___________% per annum on the Standby Loan unless

notified by Lender to stop accepting payments.

To accept payments of principal and interest at the rate of ___________% per annum beginning

on _____________________________.

2.To turn over to Lender payments received by Standby Creditor from Standby Borrower in violation of this Agreement within 15 days of receipt.

SBA Form 155 (9/98) Previous editions obsolete

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3.To take no action to enforce claims against Standby Borrower on the Standby Loan until Lender’s Loan is satisfied.

4.To take no action against Standby Borrower’s collateral, without written consent from the Lender, until Lender’s Loan is satisfied.

5.To sign appropriate documentation required by Lender to subordinate to Lender’s Loan secured interests in collateral that secures the Standby Loan.

6.Lender, in its sole discretion, may take any action without affecting this Agreement, including but not limited to the following:

a.Modify the terms of Lender’s Loan.

b.Grant an extension or renewal of Lender’s Loan.

c.Defer payments or enter into a workout agreement on Lender’s Loan.

d.Release or substitute collateral securing Lender’s Loan.

e.Forbear from collecting on existing collateral or requiring additional collateral.

f.Declare a default on Lender’s Loan and notify Standby Creditor to stop accepting payments.

g.Agree to release, compromise, or settlement of Lender’s Loan.

7.This Agreement applies to any successor to the Standby Creditor or assignee of this Agreement or of Standby Creditor’s Loan, including any bankruptcy trustee or receiver or guarantors or sureties of Standby Creditor Loan.

8.Additional Loans made by Standby Creditor will be subject to the terms of this Agreement, unless Lender agrees otherwise in writing.

Dated: _________________________________

Standby Creditor: _________________________________________________________________

By: (signature) ________________________________________________________

(name) ___________________________________________________________

SBA Form 155 (9/98) Previous editions obsolete

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form standby conclusion process described (stage 1)

2. Given that the last array of fields is done, it is time to include the necessary particulars in Lender to make an, SBA guaranteed loan to Standby, in the amount of Lenders Loan, Standby Creditor agrees Check only, To accept no further payments on, To accept interest only payments, Lenders Loan is satisfied or until, To accept payments of principal, notified by Lender to stop, To accept payments of principal, To turn over to Lender payments, and within days of receipt allowing you to proceed to the next step.

The way to complete form standby part 2

3. Completing Dated, Standby Creditor, signature, name, SBA Form Previous editions, and Page is essential for the next step, make sure to fill them out in their entirety. Don't miss any details!

form standby conclusion process detailed (portion 3)

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