SBA Form 601, Agreement of Compliance
What Is SBA Form 601?
SBA Form 601, Agreement of Compliance is a form required to be completed by the Borrower and the construction Contractor for any Small Business Administration (SBA) loan involving any construction that costs more than $10,000. The SBA 601 guarantees that the Contractors and Subcontractors performing work under a Federally assisted construction contract comply with anti-discrimination laws.
The latest edition of the form was released by the SBA in October 1985 with all previous editions obsolete. An up-to-date SBA Form 601 fillable version is available for digital filing and download below:
When Is SBA Form 601 Required?
With help from the SBA, Lenders offer Borrowers to finance the construction of owner-occupied facilities on better conditions. These conditions mean smaller equity injections, longer amortization, and additional loan proceeds. The SBA loans can be used for ground-up constructions, additions, renovations or leasehold improvements. To apply for the loan, the SBA asks for various documents based on the kind of construction that is being financed with the loan proceeds.
The SBA 601 Form is used when the cost of construction reported in SBA Form 1919 (Borrower Information Form) exceeds $10,000. The SBA 601 Form assures that the Borrower is not involved in any discriminatory hiring and firing practices and is compliant with the Executive Order 11246. That means that the Borrower agrees not to make employment decisions based on race, color, religion, sex or national origin of a potential employee.
How to Fill Out SBA Form 601?
SBA Form 601 instructions are as follows:
- The main part of the form lists the conditions of the agreement. The Borrower and the Contractor should read them carefully and certify their compliance by signing the form. Below the agreement is the line for the names of the Borrower and the Contractor. After the names are provided, the form requires the date of the execution of the agreement.
- The form will then require the name, address and phone number of the applicant business and the typed name, title, and signature of their authorized representative. The Contractor should provide their name, address and phone number as well as the name, title, and signature of the authorized representative and the corporate seal - if any.
- The form should be submitted with the complete package of documents required to apply for the desired loan.