SBA / Treasury FAQ – 11. May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrower?

Compliance > CARES Act
Q:  May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrower?
 
A:  Yes. However, the borrower should bear in mind that, as the Borrower Application Forms indicate, only an authorized representative of the applicant seeking a loan may sign on behalf of the applicant. An individual’s signature as an “Authorized
Representative of Applicant” is a representation to the lender and to the U.S. government that the signer is authorized to make the certifications, including with respect to the applicant and each owner of 20% or more of the applicant’s equity, contained in the Borrower Application Form. Lenders may rely on that representation and accept a single individual’s signature on that basis.
 
 

This Q&A was based on information contained in the Treasury Department’s March 12, 2021, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 

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