National CAPLines Authorization Boilerplate - SBA

CFR 120.400, 120.441(b) and 120.451(d)/SOP 50 10 5(E), p. 230, Subpart "B", Chapter 7.
CONTINGENCIES
E. CONTINGENCIES—SBA issues this Authorization in reliance on representations in the Loan
application, including supporting documents. The guarantee is contingent upon Lender:
1. Having and complying with a valid SBA Loan Guarantee Agreement (SBA Form 750 and SBA
Form 750B for short-term loans, if applicable) and any required supplemental guarantee
agreements, between Lender and SBA;
2. Having paid the full guarantee fee in the time and manner required by this Authorization and
the SBA Standard Operating Procedures (SOP);
3. Complying with the current SOP 50 10 and all applicable appendices;
SOP 50 10 5(E), pp. 243-253, Subpart "B", Chapter 7, Paragraph IV.H.
Option 1—for ALL CAPLines except Working Capital
4. Making initial disbursement of the Loan no later than [number of months - default
is 6] months from the approval date of this Authorization, and making final disbursement in
time for all repayments to be concluded by Loan maturity, unless either date is extended by
proper SBA procedures;
Option 2—for ALL Working Capital CAPLines
5. Making initial disbursement of the Loan no later than [number of months - default
is 6] months from the approval date of this Authorization, and making final disbursement no
later than [insert date]. Final disbursement must occur far enough in advance of
maturity so that sufficient time is available for the financed assets to be converted to cash in
order to make final payment at maturity. If maturity coincides with the scheduled annual
review of the Loan, including an annual review conducted by Lender coincidental with the
maturity of the Loan, Lender may advance on the line up to maturity in conjunction with the
Lender's annual review in accordance with Lender's policies and procedures on its similarlysized
non-SBA guaranteed commercial lines of credit. Any extension of the Loan or term out
of the Loan must comply with SBA requirements;
6. Having no evidence since the date of the Loan application, or since any preceding
disbursement, of any unremedied adverse change in the financial condition, organization,
management, operation, or assets of Borrower which would warrant withholding or not making
any further disbursement; and
7. Satisfying all of the conditions in this Authorization.
SBA Loan Number: [Loan Number] Page 5
SBA Loan Name: [Loan Name] (CAPLines 2012)