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 PaycheckProtection Program. Any

SBA Form 3507 (07/2020)

3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

SBA Form 3507 (07/2020)

4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

SBA Form 3507 (07/2020)

5
 

 

 

 

 

 

 

 

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. 

SBA Form 3507 (07/2020)

6 
 

 

 

 

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)

7