Demystifying The SBA Loan Application - Landlord Lien Subordination And Collateral Access Agreement

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By Ryan Smith. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

The Landlord Lien Subordination And Collateral Access Agreement is required to be executed during the loan closing process when an applicant receiving an SBA loan has secured an interest in real property through a commercial lease.

Parties to the agreement include the SBA Lender, who is referred to as the Lender, the SBA loan applicant, who is referred to as the Tenant and the Landlord who owns the premises occupied by the Tenant, who is referred to as the Landlord.

The purpose of this agreement is to solicit and confirm the Landlord's willingness to facilitate the loan by agreeing to subordinate its interest, if any, in the collateral, and permit Lender access to the collateral located at the premises in the event of Tenant default subject to the following terms and conditions.

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