SBA SOP 50 10 8.1, B.Ch6.D.4 — Required SBA Forms:

SOP 50 10 8.1 B.Ch6.D.4

Effective 2026-10-01 · publisher's stamp for this provision

4. Required SBA Forms: a. For all 7(a) loans, Lenders have the option of using their own Note and guaranty agreements or the SBA versions (SBA Forms 147, 148 and 148L). i. If the Lender uses its own Note form, the Lender must ensure that the Note is legally enforceable and assignable, has a stated maturity and is not payable on demand. In addition, regardless of delivery method, when the Lender uses its own Note form, the Note must include the following language: “When SBA is the holder, this Note will be interpreted 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 Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt Federal law.” ii. Lenders that intend to sell the loan guarantee into the SBA Secondary Market are strongly encouraged to use the SBA Form 147. If a Lender uses its own form of a note, all terms and conditions in the SBA Form 147 must be included in the document. The Fiscal Transfer Agent reviews notes other than the SBA Form 147 to ensure that all required terms and conditions for sale are satisfied, which may increase processing time for loan sales settlement. iii. Regardless of the delivery method, when the Lender uses its own guaranty form (Lender’s equivalent of SBA Form 148/148L), the guaranty must include the following language: “When SBA is the holder, the Note and this Guarantee will be interpreted 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 claims of SBA, or preempt Federal law.” b. The following language must appear in all lien instruments, including mortgages, deeds of trust, and security agreements: “The Loan secured by this lien was made under a United States Small Business Administration (SBA) nationwide program which uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA regulations: i. When SBA is the holder of the Note, this document and all documents evidencing or securing this Loan will be construed in accordance with Federal law. ii. Lender or SBA may use local or state procedures for purposes such as filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using these procedures, SBA does not waive any Federal immunity from local or state control, penalty, tax, or liability. No Borrower or Guarantor may claim or assert against SBA any local or state law to deny any obligation of Borrower or defeat any claim of SBA with respect to this Loan. iii. Any clause in this document requiring arbitration is not enforceable when SBA is the holder of the Note secured by this instrument.” c. Any documentation the lender uses for its similarly-sized, non-SBA commercial loans. d. Fee Disclosure and Compensation Agreement, SBA Form 159, for Lender fees in excess of $2,500. e. Fee Disclosure and Compensation Agreement, SBA Form 159 for any Agents. f. Equal Employment Opportunity Poster, SBA Form 722 (for all loans). g. IRS Form 4506-C, IVES Request for Transcript of Tax Return or IRS Form 8821, Tax Information Authorization, in accordance with Section A, Ch. 5, Para. B, IRS Tax Transcript/Verification of Financial Information.

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