Sba Form 155 – Fill Out and Use This PDF

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.