SBA SOP 50 10 8.1, B.Ch6.D.8 — Borrower Certifications:

SOP 50 10 8.1 B.Ch6.D.8

Effective 2026-10-01 · publisher's stamp for this provision

8. Borrower Certifications: a. Lender must obtain certain certifications and agreements from the Borrower(s) (OC and EPC) prior to disbursement of loan proceeds. Borrower and OC must certify that: i. They received a copy of the SBA Terms and Conditions or the Lender’s equivalent; ii. There has been no adverse change in Borrower’s (and OC’s) financial condition, organization, operations, or fixed assets since the date the Loan Application was signed; iii. No principal who holds at least 50 percent of the ownership or voting interest of the Borrower or OC is delinquent more than 60 days under the terms of any administrative order; court order; or repayment agreement requiring payment of child support; iv. Borrower and OC are current on all federal, state, and local taxes, including but not limited to income taxes, payroll taxes, real estate taxes and sales taxes; and v. If applicable, the Borrower(s) and the 401(k) plan are in compliance with all applicable IRS, Treasury, and Department of Labor requirements and will comply with all relevant operating and reporting requirements. vi. Environmental - For any real estate pledged as collateral for the loan or where the Borrower or OC is conducting business operations, the Borrower or OC are in compliance with all local, state, and Federal environmental laws and regulations and will continue to comply with these laws and regulations. Furthermore, they are unaware of any other actual or potential environmental hazards related to the collateral or business premises. They agree to fully indemnify Lender and SBA against all liabilities or losses arising from the contamination of the property before or during the term of the loan. vii. The Borrower and/or OC will reimburse Lender for out of pocket expenses incurred in the making and administration of the loan; viii. The Borrower and/or OC will maintain proper books and records, allow Lender and SBA access to these records, and furnish financial statements or reports annually or whenever requested by Lender; ix. The Borrower and/or OC will post SBA Form 722, Equal Opportunity Poster, where it is clearly visible to employees, applicants for employment and the general public; x. To the extent practicable, they will purchase only American-made equipment and products with the proceeds of the loan; xi. They will pay all Federal, state, and local taxes, including income, payroll, real estate, and sales taxes of the business when they come due; xii. For debt refinance, the debt being refinanced was used exclusively for the Applicant’s business, including any credit card, HELOC, and/or debt on the balance sheet; and xiii. During the life of the loan, the real estate if purchased by proceeds of the 7(a) loan pledged as collateral for the loan or where the Borrower or Operating Company conducts its business operations will not be leased to or occupied by any business that Borrower or Operating Company knows is engaged in any activity that is illegal under Federal, state or local law or any activity that can reasonably be determined to support, promote, or facilitate any activity that is illegal under Federal, state, or local law. b. Borrower and OC must certify that they will not, without the Lender’s prior written consent: i. Make any distribution of company assets that will adversely affect the financial condition of the Borrower and/or OC; ii. Change the ownership structure or interests in the business during the term of the loan; or iii. Sell, lease, pledge, encumber (except by purchase money liens on property acquired after the date of the Note), or otherwise dispose of any of the Borrower’s property or assets, except in the ordinary course of business.

Source: SBA SOP 50 10 8.1, B.Ch6.D.8 — Borrower Certifications: · source URL · snapshot 0fb0c4692cf52938