CARES Act Section 1102 Lender Agreement for Non-Bank and Non-Insured Depository Institution Lenders

Summary

The CARES Act Section 1102 Lender Agreement for Non-Bank and Non-Insured Depository Institution Lenders, OMB Control Number 3245-0407, under which a lender agrees as a condition of authorization by the SBA and the Department of Treasury to make Paycheck Protection Program financing available. It states that depository or non-depository financing providers may be eligible to participate if they meet the criteria described. It requires the lender to attest to all statements in either Group A or Group B, and Group A includes having operated since at least February 15, 2019 and having originated, maintained and serviced more than $50 million in business loans in a consecutive 12 month period in the past 36 months.

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Archived specimen for the record — not for filing; current forms are at sba.gov.

Issuer: Congressional materials
Document type: Department Of The Treasury Lender Application Form For Non Bank And Non Insured Depository
Case: Department Of The Treasury Lender Application Form For Non Bank And Non Insured Depository Instituti 667A894A1A

Cite this document

“CARES Act Section 1102 Lender Agreement for Non-Bank and Non-Insured Depository Institution Lenders.” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-lender-application-form-for-non-bank-and-non-insured-depository-instituti-667a894a1a/, SHA-256 3ac6f316cb047c4862a05f35b3918d403c35b4e7b9b4644c2de4d799e0ed7a4d.

Full text

OMB Control Number: 3245-0407
Expiration Date: 12/31/2023

CARES Act Section 1102 Lender Agreement –
Non-Bank and Non-Insured Depository Institution Lenders
(“Lender”) hereby agrees as a condition and in
consideration of authorization by the United States Small Business Administration (“SBA”) and
the Department of Treasury for Lender to make Paycheck Protection Program SBA-guaranteed
financing available as part of the Coronavirus Aid, Relief, and Economic Security Act
(“CARES Act”) (P.L. 116-136) to eligible recipients, as follows (the “Agreement”):

1. Lender Eligibility Requirements.

Depository or non-depository financing providers may be eligible to participate as lenders in the
Paycheck Protection Program if they meet the criteria described in the attestations below.

Lender must attest to all of the statements in either Group A or Group B below.

Group A. Lender attests that it: Initial below
Is a depository or non-depository financing provider; AND
Originates, maintains, and services business loans or other commercial
financial receivables or participation interests; AND
Has a formal compliance program relating to, e.g., auditing and
compliance with applicable laws; AND
Applies the requirements under the BSA as a federally regulated financial
institution, or the BSA requirements of an equivalent federally regulated
financial institution; AND
Has been operating since at least February 15, 2019; AND
Has originated, maintained, and serviced more than $50 million in
business loans or other commercial financial receivables during a
consecutive 12 month period in the past 36 months.

Group B. Lender attests that it is: Initial below
A service provider to an insured depository institution; AND
Has a contract to support such institution’s lending activities in
accordance with 12 U.S.C. § 1867(c).

SBA Form 3507 (07/2020)
Lender Information (please provide as applicable):

Institution Name
Headquarters (City, State)
IRS Employer Identification No.
State of Incorporation or
Organization
Primary Regulator in State of
Incorporation or Organization
Primary Contact Name
Phone Number
E-mail
Website
State ID Number Issued by
Primary State Regulator
Central Index Key (CIK)
Business loans or other commercial financial receivables originated and serviced:
Originated during the year: $ Amount: Number of Loans
2019
2018
2017
Serviced as of year-end: $ Amount: Number of Loans
2019
2018
2017
Estimated number of small
businesses served in past 12
months through a loan, payment,
or other financial service customer
relationship
Explanation (if applicable) of
estimated number of small
businesses served (500 character
max)

Is the Lender a certified
Community Development
Financial Institution?
For service providers to insured
depository institutions under 12
U.S.C. § 1867(c), list the top 3
insured depository institutions for
which such services are provided
(by loan count)
1.a. Institution Name

SBA Form 3507 (07/2020) 2
1.b. RSSD ID
2.a. Institution Name
2.b. RSSD ID
3.a. Institution Name
3.b. RSSD ID
Is Lender subject to an
enforcement action by its primary
federal regulator that addresses
unsafe or unsound lending
practices?
For lenders attesting to statements
in Group B, within the past three
years, has Lender been examined
by the Federal Reserve, OCC, or
FDIC in connection with Lender’s
role as a service provider under 12
U.S.C. § 1867(c)?
Is Lender presently suspended,
debarred, proposed for debarment,
or declared ineligible by any
federal department or agency?
Is Lender presently the subject of
any insolvency, bankruptcy or
creditor’s rights proceedings?
Is Lender presently subject to any
indictment, or criminal or civil
fraud charges brought in any
jurisdiction?
Additional comments to clarify
any information above (750
character max)

2. Application for Guaranty. This Agreement governs only “covered loans,” duly approved
under delegated authority hereafter for guaranty by SBA, that are subject to the Paycheck
Protection Program under the CARES Act, section 7(a)(36) of the Small Business Act, any rules
that have been issued by SBA implementing the Paycheck Protection Program, or any other
applicable Loan Program Requirements, as defined in 13 CFR § 120.10, as amended from time to
time (collectively “PPP Loan Program Requirements”).

3. Approval of Guaranty. Lender will process and approve covered loans under delegated
authority from SBA. Lender assumes all obligations, responsibilities, and requirements associated
with delegated processing of covered loans made under the Paycheck Protection Program. Any

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SBA Form 3507 (07/2020)
change in the terms or conditions stated in the loan authorization shall be made in accordance with
PPP Loan Program Requirements. For purposes of making covered loans to an eligible recipient
under the Paycheck Protection Program, Lender is responsible, to the extent set forth in the PPP
Loan Program Requirements, for all decisions concerning the eligibility (including size) of a
borrower for a covered loan. Lender may issue a covered loan approved under PPP procedures
without prior SBA review and approval of the processing and underwriting of the loan by executing
a PPP Authorization.

4. Closing and Disbursement of Covered Loans. Lender must close and disburse each covered
loan in accordance with the terms and conditions of the PPP Authorization and PPP Loan Program
Requirements. Lender must ensure that a note and all other Loan Documents (as defined in this
paragraph) and additional documents are properly executed and take such other actions necessary to
fulfill the requirements of the Paycheck Protection Program. SBA is entitled, at any time, to
examine and obtain copies of all notes, certifications and documentation (herein, collectively, called
“Loan Documents”), and all other records held by Lender which relate to covered loans made
pursuant to the Paycheck Protection Program.

5. Administration of Covered Loans. Lender will hold the Loan Documents and receive all
payments of principal and interest unless Lender is required to transfer or assign the note to SBA or
a third party at SBA’s direction. Lender must service and liquidate all covered loans made under the
Paycheck Protection Program in accordance with PPP Loan Program Requirements. Except when
SBA directs otherwise, all servicing actions will be the responsibility of Lender, which must follow
accepted standards of loan servicing employed by prudent lenders.

6. Purchase by SBA. By making any written demand that SBA purchase the guaranteed portion of
a loan, Lender will be deemed thereby to certify that the covered loan has been made, closed,
serviced, and liquidated in compliance with the Paycheck Protection Program and PPP Loan
Program Requirements. This Agreement will remain in full force and effect with respect to the
covered loan after any purchase.

7. Prohibited Fees. Other than a fixed interest rate of 1.0% on the covered loan, Lender is not
permitted to charge or receive any bonus, fee, prepayment penalty, commission or other payment or
benefit from a borrower in connection with the making or servicing of any covered loan under the
Paycheck Protection Program.

8. Termination.
A. A Lender’s authority to make a covered loan under this Agreement will terminate on August 9,
2020. Either party may also terminate this Agreement upon not less than 10 days written notice
by certified mail to the other party. Termination will not affect the guaranty of any covered
loan previously authorized by SBA under the Paycheck Protection Program. It is understood
and agreed that Lender shall continue to comply with the Paycheck Protection Program and
PPP Loan Program Requirements with respect to any covered loan previously authorized by
SBA, including but not limited to the servicing and liquidation of such covered loans.
Termination by either party will not affect in any way Lender’s continuing obligation to comply
with this Agreement, the Paycheck Protection Program, and all PPP Loan Program
Requirements with respect to any covered loan previously authorized by SBA under this
Agreement. If this Agreement is terminated by either Lender or SBA, Lender hereby agrees
that SBA may in its sole discretion transfer some or all of the covered loans and/or the
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SBA Form 3507 (07/2020)
servicing and liquidation of such covered loans and related fees or income to SBA or
another entity approved by SBA. If SBA requires the transfer of Lender’s covered loans,
Lender must cooperate with SBA to transfer responsibility for servicing and
liquidating of such covered loans.
B. The guaranty of any covered loan will be automatically terminated if Lender does not submit
to SBA a demand to purchase the guaranty or a request to extend the maturity within one
year after the maturity of the note.
9. Assignment. Lender may only assign or transfer its rights and obligations under this
Agreement with SBA’s prior written consent, which SBA may withhold in its sole discretion.

10. Interpretation of this Agreement.
A. This Agreement is subject to section 7(a)(36) of the Small Business Act, the Paycheck
Protection Program and PPP Loan Program Requirements and will be interpreted and
construed subject to, and to give full effect to, the broad scope of SBA’s power and
authority under the Small Business Act and those requirements. Lender consents and
agrees to all rights and remedies available to SBA under the Small Business Act, the
Paycheck Protection Program and PPP Loan Program Requirements, as each of those are
amended from time to time, and any other applicable law.

B. To the best of its knowledge, Lender certifies that it is in compliance and will maintain
compliance with all applicable requirements of the Paycheck Protection Program and PPP
Loan Program Requirements.

C. Lender understands that SBA’s rights and powers under the Small Business Act, the
Paycheck Protection Program and PPP Loan Program Requirements are in addition to, and
exist independent of, this Agreement, and that nothing in this Agreement may be asserted
against SBA under any circumstances to delay or prevent SBA’s full exercise of its rights
under applicable law.

D. Lender agrees to hold SBA harmless for any action taken by SBA in enforcing this
Agreement, the Small Business Act, the Paycheck Protection Program and PPP Loan
Program Requirements against Lender for any covered loan made under this Agreement.

E. Lender agrees that any modification to this Agreement to be asserted against SBA or any
exemption to be claimed from any provision of the Small Business Act, the Paycheck
Protection Program, or PPP Loan Program Requirements is invalid, null, and void unless it
is made in writing by an official of SBA authorized to grant such modification or
exemption and was made after full disclosure to SBA of all material facts and
circumstances.

F. This Agreement is to be interpreted under and construed in accordance with federal law.

G. This Agreement will inure to the benefit of, and be binding upon, the Lender’s authorized
successors and assigns.

H. Lender understands that its execution and transmission to SBA of this Agreement does not
grant automatic enrollment in the Paycheck Protection Program. SBA and the Department of
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SBA Form 3507 (07/2020)
Treasury will evaluate Lender and this Agreement in accordance with the PPP Loan
Program Requirements and determine whether Lender has the necessary qualifications to
process, close, disburse, and service loans made with the SBA guarantee. SBA and the
Department of Treasury may request additional information from Lender before making a
determination.

By signing below, I hereby certify that I have the authority to execute this Agreement for the
Lender on whose behalf I am signing, and that all representations made are true and correct to
the best of my knowledge. I further acknowledge that on behalf of the Lender I have also
submitted an Incumbency Certificate attached hereto. I further acknowledge that on behalf of
the Lender I have also submitted Lender’s most recent fiscal year-end audited financial
statements attached hereto. I further acknowledge that any false statements made to the U.S.
Small Business Administration and Department of the Treasury can result in criminal
prosecution under 18 U.S.C. 1001, 15 U.S.C. 645, and other provisions and imposition of civil
money penalties under 31 U.S.C. 3729.

IN WITNESS WHEREOF, the undersigned has duly executed this Agreement.

Name of Lender

Signature Date

Name and Title

ATTEST/WITNESS

I, , hereby represent and warrant that I am a duly
elected or appointed Secretary or Officer of (the
“Lender”) and that is duly authorized and
has the legal capacity to execute this Agreement on behalf of the Lender.

Signature:

Name and Title:

Attachment 1: Incumbency Certificate

Attachment 2: Most recent fiscal year-end audited financial statements.

Transmit executed SBA Form 3507 (07/2020) and attachments to
NFRLApplicationForPPP@sba.gov.

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SBA Form 3507 (07/2020)
Paperwork Reduction Act – You are not required to respond to this collection of information
unless it displays a currently valid OMB Control Number. The estimated time for completing
this agreement, including gathering information, is 25 minutes. Comments about this time or
suggestions for reducing the time burden estimate should be sent to Small Business
Administration, Director, Records Management Division, 409 3rd St., SW, Washington DC
20416, and/or SBA Desk Officer, Office of Management and Budget, New Executive Office
Building, Washington DC 20503. DO NOT SUBMIT AGREEMENTS TO THESE
ADDRESSES.

SBA Form 3507 (07/2020)

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Original: home.treasury.gov