SBA Form 1086 Secondary Participation Guaranty Agreement

What Is SBA Form 1086?

This is a legal form that was released by the U.S. Small Business Administration on February 1, 2014 and used country-wide. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is SBA Form 1086?A: SBA Form 1086 is the Secondary Participation Guaranty Agreement.

Q: What does the Secondary Participation Guaranty Agreement do?A: The Secondary Participation Guaranty Agreement is a form used by the Small Business Administration (SBA) to guarantee a secondary participation interest in a loan made by a lender.

Q: Who uses SBA Form 1086?A: Both the lender and the SBA use SBA Form 1086.

Q: What is a secondary participation interest?A: A secondary participation interest is a portion of a loan that is sold by the original lender to another lender or investor.

Q: Why is the SBA involved in the Secondary Participation Guaranty Agreement?A: The SBA provides a guarantee to the secondary lender or investor in case the borrower defaults on the loan.

Q: Is the SBA Form 1086 required for all secondary participation agreements?A: Yes, the use of SBA Form 1086 is required for all secondary participation agreements involving the SBA.

Q: What information is needed to fill out SBA Form 1086?A: SBA Form 1086 requires information about the original loan, the borrower, the secondary lender or investor, and any supporting documentation.