OMB Control Number:3245-0407 

Expiration Date: 09/30/2021 

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) and the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and 

Venues Act (“Economic Aid Act”) (P.L. 116-260) 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, or serviced more than $50 million in business 

loans or other commercial financial receivables during a consecutive 12-

month period in the past 36 months.

1 

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).

1 A community development financial institution (other than a federally insured bank or federally insured credit 

union) or a majority minority-, women-, or veteran/ military-owned lender, that has originated, maintained, or 

serviced more than $10 million in business loans or other commercial financial receivables during a 12-month 

period in the past 36 months, but that does not meet the $50 million threshold that is otherwise applicable, should 

leave blank this attestation related to the $50 million threshold, and instead include with its application an attestation 

stating: “Lender attests that it has originated, maintained, or serviced more than $10 million in business loans or 

other commercial financial receivables during a consecutive 12 month period in the past 36 months.” 

SBA Form 3507 (04/2021)
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SBA Form 3507 (04/2021) 

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
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SBA Form 3507 (04/2021) 

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 and the Economic Aid Act, sections 7(a)(36),

7(a)(37), and 7A 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 change in the terms or conditions stated in the loan authorization shall be made in
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SBA Form 3507 (04/2021) 

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%, calculated on a non-compounding,

non-adjustable basis, 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 July 1,

2021. 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
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SBA Form 3507 (04/2021) 

that SBA may in its sole discretion transfer some or all of the covered loans and/or the 

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 sections 7(a)(36), 7(a)(37), and 7A 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.
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SBA Form 3507 (04/2021) 

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

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 (04/2021) and attachments to 

NFRLApplicationForPPP@sba.gov. 
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SBA Form 3507 (04/2021) 

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.