Understanding the Loan Advance Request Form: A Comprehensive Guide
Definition & Meaning
A loan advance request form is a document approved by the Small Business Administration (SBA) that allows a Systemically Important Secondary Market Broker-Dealer (SISMBD) to request a specific amount of funds. This amount is intended for purchasing certain guaranteed portions or certificates. The total requested, when combined with the outstanding balance of the existing SISMBD loan, must not exceed the total loan amount available to the SISMBD.
Legal Use & context
This term is primarily used in the context of SBA loans, particularly within the SISMBD Loan Program. It is relevant in financial and business law, especially for entities involved in securities and investment. Users may manage the loan advance request process themselves by utilizing legal templates provided by services like US Legal Forms, which can help streamline the documentation needed for such requests.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A SISMBD has an existing loan balance of $500,000 and wishes to request an additional $200,000 using the loan advance request form to purchase guaranteed portions. The total will be $700,000, which is within the approved loan limit.
Example 2: A SISMBD with a loan limit of $1 million requests $600,000 on the form, but their existing balance is $500,000. This request exceeds the loan limit and would be denied. (hypothetical example)