SBA Form 1059, Security Agreement, is a U.S. Small Business Administration (SBA) form in which a Debtor grants a Secured Party a security interest in specified collateral to back an SBA loan Note. The SBA lists it among its 7(a) and CDC/504 program documents. On this page you can fill out the form online on FillingPDF and download or print the completed PDF. The original PDF is published by the SBA at the address linked as the official source.
Last updated
What is SBA Form 1059?
SBA Form 1059, Security Agreement, is the U.S. Small Business Administration (SBA) form through which a Debtor grants a Secured Party a security interest in the collateral it describes, securing payment and performance of an SBA loan Note and related obligations.
The four-page form opens with a block for the SBA Loan #, SBA Loan Name, Debtor, Borrower, Secured Party, Date and Note Amount. The numbered paragraphs then define terms by the Uniform Commercial Code (UCC), grant the security interest, list the Obligations secured (the Note, collection and enforcement costs, other agreements relating to the Note, and any modifications, renewals, refinancings or extensions), and describe the collateral in categories a through m. The agreement also sets rules on transferring collateral, keeping and insuring it, notifying the Secured Party of changes, perfecting the security interest, default, federal rights, governing law and the Debtor's certifications.
The SBA's page says the document grants a security interest to the Secured Party, identified there as the CDC, and lists the 7(a) and CDC/504 programs as related programs. The form states that previous editions are obsolete.
Who needs to file SBA Form 1059?
The Debtor named on the form uses it: the individual, corporation, LLC, partnership or other organization that grants a security interest in its property to the Secured Party in connection with an SBA loan Note. The form asks for the exact full legal name of each Debtor and identifies the Borrower separately.
The SBA's page places the document with the 7(a) and CDC/504 programs and names the CDC as the Secured Party. The Secured Party is the party that receives the security interest and may file documents to perfect it.
Limits written into the form: in paragraph 14 the Debtor certifies that none of the Obligations are or will be primarily for personal, family or household purposes, and that none of the Collateral is or will be used or bought primarily for those purposes. It also certifies that it owns or holds title to the Collateral in its own name and has legal authority to grant the security interest.
When more than one individual or organization signs, each becomes jointly and severally obligated as a Debtor under the agreement.
When to file SBA Form 1059
The form is completed when a security interest is to be granted for an SBA loan Note: it records the Date, the Note date and the Note Amount, so it is prepared together with the loan documents. The form prints no separate due date.
After signing, the Debtor has one stated timing duty. Paragraph 7 requires written or electronic notice to the Secured Party not less than 30 days before changing or reorganizing its type of organization, moving or adding a place of business, changing its jurisdiction of organization or changing its name. The Debtor also must promptly notify the Secured Party of any change in location of the Collateral, under paragraph 6.
How to fill out SBA Form 1059
Enter the SBA loan identifiers
At the top, fill in the SBA Loan # and the SBA Loan Name.
Name the Debtor exactly
In the Debtor box, enter the exact full legal name of each individual, corporation, LLC, partnership or other organization granting the security interest.
Identify Borrower and Secured Party
Enter the Borrower and the Secured Party in their boxes in the header block.
Add the Date and Note Amount
Fill in the Date and the Note Amount in the header block.
Complete the Note details
In paragraph 3, enter the date of the Note, who made it, who it is payable to and its amount, so the Obligations secured match the Note.
Mark the collateral categories
In paragraph 4, put an "X" or other mark on each applicable line from a (Equipment) through k (Investment property). Only marked lines describe the Collateral.
List titled vehicles
On line l, list make, model and serial # of each titled motor vehicle, including mobile or manufactured homes, if any.
Describe any other collateral
On line m, insert a specific description of collateral not covered by categories a through k, for example a specific commercial tort claim or letter-of-credit rights.
Add signature lines in paragraph 15
Provide the appropriate signature lines for each individual and organization signing as Debtor; each becomes jointly and severally obligated.
Review certifications and download
Check the paragraph 14 certifications against your facts, then download or print the completed PDF from FillingPDF and sign it as the Debtor.
How to submit SBA Form 1059
The form prints no mailing address, portal or appointment rule, so it names no channel of its own. It is an agreement between the Debtor and the Secured Party, which the SBA's page identifies as the CDC, and the signed agreement is handled with the loan documents for the Note it secures.
Paragraph 8 allows the Secured Party to file or record any documents needed to perfect, continue, amend or terminate its security interest without further notice, and the Debtor pays the filing and recording costs. Ask the Secured Party or the SBA program office handling your loan how the signed form is to be delivered.
FillingPDF lets you fill out and download the PDF; submission follows the channels used for the loan, not FillingPDF.
Common mistakes to avoid
- Entering a name other than the Debtor's exact full legal name; paragraph 14 has the Debtor certify that the name stated is correct.
- Leaving the collateral lines unmarked: the Collateral covers only property indicated by an "X" or other mark on the applicable line in paragraph 4.
- Marking collateral that is owned or titled in another person's or organization's name; the Debtor certifies all Collateral is in its own name.
- Omitting make, model and serial # for titled motor vehicles or mobile or manufactured homes on line l.
- Using line m for categories already listed in a through k instead of a specific description of other collateral, such as a commercial tort claim or letter-of-credit rights.
- Using the form for a loan or collateral primarily for personal, family or household purposes, which the Debtor certifies is not the case.
- Leaving the signature section as the "[INSERT APPROPRIATE SIGNATURE LINES]" placeholder instead of signature lines for each individual and organization acting as Debtor.
- Completing an older edition: the form states that previous editions are obsolete.
Frequently asked questions
What is SBA Form 1059?
SBA Form 1059 is the Security Agreement used with an SBA loan Note. The Debtor grants the Secured Party a security interest in described collateral, securing the Note and related obligations. The SBA's page lists the 7(a) and CDC/504 programs as related programs.
Which SBA programs use the Security Agreement?
The SBA's page for the form lists 7(a) and CDC/504 as related programs and describes the Secured Party as the CDC. The form itself refers only to an SBA loan, with the SBA Loan # and Note details in its header.
What collateral can SBA Form 1059 cover?
Paragraph 4 lists equipment, fixtures, inventory, accounts, instruments, chattel paper, general intangibles, documents, farm products, deposit accounts, investment property, titled motor vehicles and other collateral. Only the lines you mark are included, whether owned now or acquired later.
Who signs the Security Agreement?
Each individual and each organization signing as Debtor. Paragraph 15 says that by signing or otherwise authenticating, each becomes jointly and severally obligated as a Debtor. The form leaves the signature lines to be inserted for the parties involved.
What counts as default under SBA Form 1059?
Paragraph 9 lists failing to comply with the agreement, a materially false representation, certification or warranty, another creditor exercising rights against the Collateral, and a default under the Obligations. The Secured Party may then declare the Obligations immediately due.
Do I have to notify the Secured Party before changing my business name?
Yes. Paragraph 7 requires written or electronic notice at least 30 days before changing your name, organization type, place of business or jurisdiction of organization. You also pay for documents the Secured Party deems necessary to keep its security interest perfected.
Which law governs the Security Agreement?
When SBA holds the Note, federal law, including SBA regulations, governs (paragraph 10). Otherwise, paragraph 11 applies the laws of the jurisdiction where the Debtor is located, including the UCC as in effect there.
Can I fill out SBA Form 1059 online on FillingPDF?
Yes. You can fill out the fillable PDF online on FillingPDF and download or print it. FillingPDF is independent of the SBA and does not file, send or process the agreement; the signed form is handled through the channels used for your loan.
Ready to fill out SBA Form 1059?
Fill out SBA Form 1059 now