SBA Form 3881, ACH Vendor/Miscellaneous Payment Enrollment Form

SBA Form 3881, ACH Vendor/Miscellaneous Payment Enrollment Form
SBA Form 3881, ACH Vendor/Miscellaneous Payment Enrollment Form

What Is SBA Form 3881?

SBA Form 3881, ACH Vendor/Miscellaneous Payment Enrollment Form is a form used for Automated Clearing House (ACH) payments with an addendum record that contains payment-related information processed through the Vendor Express Program.

The latest edition of the form was released by the Small Business Administration (SBA) in February 2003. The most recent SBA Form 3881 fillable version can be downloaded below:

This form belongs to a set of forms used for applying to become a Microloan Intermediary. Lenders that offer loans of $50,000 or less are considered microlenders. The SBA makes loans to these intermediary lenders enabling them - in turn - to make loans to small business borrowers. Organizations selected to participate as lenders may receive grant funding to provide training and technical assistance to their micro-borrowers.

To qualify, the organizing has to be private, non-profit, quasi-public, or tribally owned and have at least one year of experience directly making and servicing microloans and providing in-house marketing, management, and technical assistance to its micro-level borrowers. The SBA ACH Form should be completed in three copies. The first copy is for the Agency, the second one is kept by the Payee and the third one is for the Financial Institution.

What Is an ACH Payment?

ACH stands for Automated Clearing House. This is a network coordinating electronic payments and automated money transfers. ACH allows moving money between banks without plastic card network, wire transfers, paper check or cash.

The ACH system consists of a computer network processing payments and two central clearing houses. All requests run through either the Federal Reserve or the Clearing House. This allows for efficient matching and processing between numerous financial institutions.

An ACH is usually used to pay service providers, for depositing money to employees checking account, moving funds between banks, paying a supplier for products, sending funds to the IRS or local organizations, etc. These payments are relatively easy to handle: electronic payments cannot get lost and all transactions are performed very quickly. ACH transfers are less expensive compared to credit card payments and can be accepted remotely. However, since the ACH payments use batch processing, the transactions are not processed in real-time and usually take around one or two business days.

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