The SBA 155 is marketed without procedural guidelines. SBA loan lending instructions are listed below: In certain circumstances, an SBA lender may be required to obtain a standby loan agreement for the conclusion of its SBA loan. As a general rule, the watch agreements provide for the postponement of payments on sellers` debts or debts against the borrower`s investor (s) to achieve one of the two objectives: (1) for credit reasons such as the postponement of the debt payment, in order to improve cash flow for technical insurance purposes; or (2) qualify debt as an equity contribution. Notwithstanding the reason for the standby agreement, the SBA has certain requirements for these agreements that lenders should meet when liquidating and closing their SBA-guaranteed loans. „… The lender can use the SBA 155 form or a standby contract form. A copy of the note must be attached to the standby agreement… The custodial creditor must subordinate all the security rights to the security that provide credit to the lender`s rights to the guarantees and not take action against the borrower or the security that secures the debt on standby without the lender`s consent“ (added mention). Form SBA 155, the watch agreement or the confirmation agreement is a form used to formalize the subordination of the custody lender`s pledge rights to the small business administration lender`s (SBA) guarantees. In addition, SBA 155 finds that, without the agreement of the SBA lender, the on-call creditor will not take any action against the borrower or the guarantee of the debt on standby.

Second, whatever the reason for the standby agreement, the reference should contain a language that reflects the „watch“ provisions or, at the very least, indicate that the reference is subject to the provisions of the standby agreement. By adding this language to the „watch“ note, any future third-party buyer or beneficiary of the watch ticket will be informed of the monitoring rules, which will allow the lender to enforce these provisions in the future to these third parties. The initial notification requesting the issuance of a lender must require the form of accreditation and the Master Standby Agreement or the Master Documentary Agreement, if any, as well as an application for accreditation, if any, which will then be completed by the L/C issuer in a satisfactory manner for these L/C issuers.