ORIGINFORMSTUDIO.COM – SBA Form 3506 – PPP Lender Agreement – The Paycheck Protection Program (PPP) has been a lifeline to businesses struggling through the economic downturn brought on by the COVID-19 pandemic. Established by the Small Business Administration (SBA), the PPP offers eligible businesses loans that can be fully or partially forgiven when used for specific approved expenses. To process and guarantee these loans, lenders must fill out SBA Form 3506, also known as the PPP Lender Agreement. This article will explore what this form entails and how it helps lenders navigate the complexities of offering PPP loans.
Download SBA Form 3506 – PPP Lender Agreement
|PPP Lender Agreement
What is an SBA Form 3506?
The Small Business Administration (SBA) Form 3506 is an agreement between a PPP Lender and the SBA. This form outlines the lender’s responsibilities for monitoring, administering, and disbursing funds through the Paycheck Protection Program (PPP). It outlines basic information such as the identity of both parties involved in the agreement, along with other details such as loan origination fees and servicing fees. The document also provides details on how to report borrowers’ PPP loan data to SBA systems and how disputes will be handled.
In order for lenders to receive approval from the SBA to participate in the PPP program, they must sign this agreement form. After completing this form, lenders must submit it electronically via email or fax to their assigned SBA representative in order to become eligible for loan reimbursements through PPP.
What is the Purpose of SBA Form 3506?
The Small Business Administration (SBA) Form 3506 is a lender agreement that outlines the requirements for SBA PPP loans. It is used by lenders to collect information about borrowers and their loan application, as well as to ensure compliance with the rules and regulations set forth by the SBA. The form requires applicants to provide details such as business name, address, number of employees, and detailed financial statements in order to determine eligibility for an SBA PPP loan. Additionally, it also requires lenders to verify borrower information and certify that they have followed all applicable lending guidelines when making a decision on the loan application.
Where Can I Find an SBA Form 3506?
The Small Business Administration (SBA) Form 3506 is essential for lenders who want to participate in the Paycheck Protection Program. This agreement outlines the responsibilities of both parties and can be found on the SBA website.
In order to access the form, you must first register through the Lender Gateway Portal. Once registered, you will be able to log in and access all necessary documents, including Form 3506. Additionally, a copy of this agreement can also be obtained from your local SBA district office or by calling 1-800-659-2955 for assistance.
Before agreeing to this form, it’s important that you understand all its requirements and expectations in detail so that you may make an informed decision.
SBA Form 3506 – PPP Lender Agreement
The SBA Form 3506 PPP Lender Agreement is a form that lenders must complete to obtain funds under the Paycheck Protection Program (PPP), an emergency loan program created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This form serves as an agreement between the lender and Small Business Administration (SBA) to ensure that the lender complies with all requirements of SBA’s 7(a) Loan Program. The agreement outlines the responsibilities of both parties in administering PPP loans, including providing detailed information about each loan application received and ensuring that borrowers adhere to all applicable laws. Additionally, this form documents information regarding required reports and certifications from lenders, as well as any penalties or other sanctions for failure to comply with SBA regulations.