Sba Agreement Form 159D

August 18, 2023

SBA Agreement Form 159D: A Comprehensive Guide

Small businesses often require financial assistance to grow and thrive. The Small Business Administration (SBA) provides a range of loan programs to help small businesses obtain financing. These loans can be used for working capital, purchasing equipment, or even acquiring another business. To apply for an SBA loan, you will need to complete an SBA Agreement Form 159D.

What is SBA Agreement Form 159D?

SBA Agreement Form 159D is used to document the terms and conditions of an SBA loan. The form outlines the borrower`s responsibilities, including repayment terms and the use of loan proceeds. It also outlines the lender`s responsibilities, including servicing and monitoring the loan.

The form is divided into several sections, each of which contains important information. Here`s a breakdown of the sections:

Section I – General Information: This section contains basic information about the borrower, lender, and loan.

Section II – Use of Proceeds: This section outlines how the loan proceeds will be used by the borrower.

Section III – Representations and Warranties: This section contains statements made by the borrower about the business and its financial condition. The lender relies on these statements when approving the loan.

Section IV – Covenants: This section outlines the borrower`s responsibilities in repaying the loan. It includes provisions such as maintaining insurance, keeping accurate records, and providing financial statements to the lender.

Section V – Events of Default: This section outlines the circumstances under which the lender may declare the loan in default and demand immediate repayment.

Section VI – Miscellaneous: This section contains additional provisions, including the borrower`s consent to jurisdiction in a particular state, the right of the lender to assign the loan, and the requirement for notice in case of default.

Why is SBA Agreement Form 159D important?

SBA Agreement Form 159D is important because it establishes the terms and conditions of the loan. It ensures that both the borrower and the lender understand their respective responsibilities. The form also provides a framework for resolution in case of disputes.

The SBA requires that borrowers complete this form as part of the loan application process. Failure to complete the form accurately and truthfully can result in the loan being denied or cancelled.

In addition, lenders rely on the information contained in the form to make lending decisions. They need to ensure that the borrower is creditworthy and has the ability to repay the loan.


SBA Agreement Form 159D is a vital document that outlines the terms and conditions of an SBA loan. It ensures that both the borrower and lender understand their responsibilities and provides a framework for resolution in case of disputes. Completing the form accurately and truthfully is a crucial step in obtaining financing for your small business.