FS-2700-11 Agreement Concerning Small Business Administration Loan

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FS-2700-11 (XX/XXXX)
USDA Forest Service
OMB No. 0596-0082
AGREEMENT CONCERNING
A SMALL BUSINESS ADMINISTRATION LOAN
FOR A HOLDER OF A SPECIAL USE PERMIT

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This agreement (Agreement) is made by two agencies of the United States Government, the UNITED STATES
DEPARTMENT OF AGRICULTURE, UNITED STATES FOREST SERVICE (the Forest Service); the UNITED
STATES SMALL BUSINESS ADMINISTRATION (the SBA); [name of lender],a [name of state] [type of institution,
e.g., bank or credit union] (the Lender); and [name of borrower], a [name of state] [corporation, partnership, other
entity, or individual] (the Borrower).
A. STATEMENT OF MUTUAL BENEFITS AND INTERESTS

1. On [date], the Forest Service issued a [Type of Special Use Permit], Authorization Identification Number
years.

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(the Permit), to the Borrower for a term of

2. The Permit authorizes the Borrower to use and occupy certain National Forest System lands for
the purpose of constructing, operating, and maintaining a [describe type of authorized use]. The Permit covers
National Forest System lands in [legal description of property], [county name] County, [name of state] (the
Property).
3. The Property is owned by the United States and managed under statutory authority granted to the
Forest Service.
4. Under the Permit, physical improvements, machinery, and equipment owned by the Borrower that are located
on the Property (the Improvements) are personal property, not fixtures.
5. The Borrower ["intends to provide" or "provides"] products and services to the public under the terms of the
Permit.

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6. The Borrower has applied to the Lender for a loan to be guaranteed by the SBA. As collateral for the loan, the
Lender and the SBA have proposed to take a security interest in the Improvements.
7. The Lender has agreed to make a loan to the Borrower in the amount of $

(the Loan), with a maturity of

months from the date of the note (the Note) for the Loan, and the SBA has authorized a guarantee of the
Loan, subject to the execution of this Agreement.
8. The Forest Service believes that the public will benefit from the products and services provided by the
Borrower under the terms of the Permit.
9. The Forest Service desires the cooperation of the SBA and the Lender in connection with the financing of the
Improvements by the SBA and the Lender.

10. The SBA and the Lender desire to provide a Loan to the Borrower, which will finance recreational or other
operations that provide a public service on National Forest System lands, thereby benefiting the Forest Service’s
special uses program.
11. The SBA, the Lender, and the Borrower desire the cooperation of the Forest Service in connection with
financing of the Improvements by the Lender and the SBA.
B. THE PARTIES AGREE AS FOLLOWS:
1. The Permit is revocable, terminable, and not transferable in accordance with its terms and federal regulations.
The Permit is not real property, does not convey any interest in real property, and may not be used as collateral
for the Loan.

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2. As collateral for the Loan, the Borrower is giving the Lender a security interest in the Improvements, and the
Forest Service acknowledges the creation of that security interest at the request of the Lender. No security
interest is created in the Property or in any improvements owned by the United States. Nothing in this Agreement
is intended to abridge any rights that the SBA or the Lender may have under applicable law in connection with the
Improvements.
3. The Borrower is in compliance with the terms of the Permit.

4. The United States receives land use fees from the Borrower as provided in the Permit. The land use fees and
other Permit provisions may be modified or replaced under the terms of the Permit or federal regulations.

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5. Any transfer of title to the Improvements [or change in majority control of the Borrower] shall result in
termination of the Permit. Prior to any transfer of title to the Improvements [or change in majority control of the
Borrower], the Forest Service, the SBA, and the Lender shall coordinate in obtaining an acceptable permit holder.
Issuance of a new permit shall be at the sole discretion of the Forest Service. The Forest Service shall determine
that the prospective holder meets requirements under Forest Service regulations, including financial and technical
capability. Pursuant to federal regulations, it is Forest Service policy not to issue a new permit for a [type of
authorized use] to any individual or entity that does not hold title to the Improvements [or have control of the
Borrower]. Transfer of title to the Improvements [or change in control of the Borrower] shall be subject to the
terms of the Note, security agreement, and any other documentation made or executed in conjunction with the
Loan (the Loan Documents). The SBA and the Lender shall determine in their sole discretion that the prospective
holder meets their requirements and shall grant their prior written consent before transfer of title to the
Improvements [or change in control of the Borrower] may occur.

6. If the Borrower fails to comply with the terms of the Permit and the noncompliance could lead to suspension of
revocation of the Permit, the Forest Service shall (1) notify the SBA and the Lender in writing of the
noncompliance; (2) inform the SBA and the Lender of any action taken in response to the noncompliance; and
(3) apprise the SBA and the Lender of the resolution of any disputes with the Borrower or any proposed
agreement to modify the terms of the Permit arising out of the noncompliance; provided, however, that prior notice
is not required under clauses (1) and (2) of this paragraph where immediate action is deemed necessary under
federal regulations. Notice shall be mailed “certified return receipt requested” to the following addresses:
[name and address of local SBA office]
[name and address of the Lender]
Nothing in this paragraph limits the Forest Service’s authority to administer the Permit under federal regulations.
Neither the SBA nor the Lender shall have any claim or remedy against the Forest Service if the Forest Service

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fails to comply with this paragraph; provided, however, that notice shall be given as specified in this paragraph.
Neither the SBA nor the Lender shall have any obligation to take any action as a result of this notice, and no
borrower or third party shall have any claim as a result of this notice or any action or failure to act as a result of
this notice.
7. The SBA and the Lender shall advise the Forest Service of liquidation or litigation actions which may be taken
against the Borrower.
8. Upon completion of liquidation or litigation actions against the Borrower under the Loan Documents that result
in loss of ownership of the Improvements, the Permit shall terminate. All the provisions of paragraph B.5 apply to
a transfer of title to the Improvements resulting from liquidation or litigation actions against the Borrower under the
Loan Documents.

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9. The SBA and the Lender shall have physical access to National Forest System lands not subject to a special
use permit or other restrictions imposed under applicable law. While the Borrower holds the Permit, the Borrower
agrees to allow the SBA and the Lender to gain physical access to the Improvements as is necessary to service
or liquidate the Loan in the SBA’s and the Lender’s discretion. During any period the SBA or the Lender has title
to the Improvements, or during any period the Property is not subject to a special use permit during the life of the
Loan, the Forest Service shall, to the extent permitted under applicable law, allow physical access to the
Improvement by the SBA, the Lender, or their agents as is necessary to service or liquidate the loan or to secure
the Improvements. The SBA and the Lender shall give prior notice to the Forest Service of such access to the
Improvements. The SBA and the Lender shall obtain a temporary authorization from the Forest Service in
accordance with federal regulations in order to operate a business in or otherwise occupy the Improvements.

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10. If the Permit is revoked, the Forest Service, the SBA, and the Lender shall coordinate in obtaining an
acceptable permit holder. Issuance of a new permit shall be at the sole discretion of the Forest Service. The
Forest Service shall determine that the prospective holder meets requirements under Forest Service regulations,
including financial and technical capability. As part of this cooperation, the Forest Service shall not issue a new
permit for a [type of authorized use] to any individual or entity that does not hold title to the Improvements. The
SBA and the Lender shall determine in their sole discretion that the prospective holder meets their requirements
in this regard.
11. Nothing in this Agreement precludes the SBA or the Lender from exercising remedies against the Borrower
associated with other security interests.
12. The Borrower acknowledges that its liability and the liability of any guarantors under the Loan Documents
shall not be released if the Loan is assumed by a new permit holder.

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13. The parties to this Agreement do not intend to confer any rights on any third party as a beneficiary under this
Agreement. In addition, this Agreement does not confer the status or privileges of a permit holder on the SBA,
the Lender, or any third party.

14. The Borrower, the Lender, and the SBA acknowledge that the Permit and the Property are not encumbered
by any of the Loan Documents and are not subject to foreclosure if the Borrower defaults. Any statement in the
Permit or the Loan Documents that appears to create a security interest in the Permit or the Property is ineffective
and contrary to law.
15. This Agreement shall terminate automatically upon repayment of the Loan. The SBA and the Lender shall
give the Forest Service notice of repayment of the Loan.

16. Nothing in this Agreement shall be construed to limit in any way the sole discretion of the Forest Service to
regulate the use and occupancy of National Forest System lands, including decisions not to reauthorize any use
which may be inconsistent with a land management plan or applicable law.
17. This Agreement is intended to foster consultation among the parties in order to coordinate more effectively
the fulfillment of their respective rights and obligations.

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18. This Agreement is not transferable.
19. The Borrower warrants that it has full authority to enter into this Agreement and covenants that it shall be
binding on its representatives, successors, and assigns.
20. The undersigned officials of the SBA, the Forest Service, and the Lender warrant that they have the
delegated authority to execute this Agreement.
21. This Agreement may be executed by different parties in separate counterparts. When all parties have signed
this Agreement and all executed signature pages are attached to a single counterpart, it shall be deemed an
original, fully executed copy of this Agreement.
UNITED STATES SMALL BUSINESS ADMINISTRATION
By:
Name:
Title:

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Date:

Date:

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UNITED STATES DEPARTMENT OF AGRICULTURE, FOREST SERVICE
By:
Name:
Title:

[name], BORROWER
By:
Name:
Title:
Date:

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[name] , LENDER
By:
Name:
Title:
Date:

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PAPERWORK REDUCTION ACT STATEMENT
According to the Paperwork Reduction Act of 1995, a Federal agency may not conduct or sponsor, and a person is not required to respond to,
an information collection request unless it displays a valid Office of Management and Budget (OMB) control number. The valid OMB control
number for this information collection request is 0596-0082. Response to this information collection request is required to obtain or retain
benefits, specifically, a special use authorization. The authority for this information collection request is the Organic Administration Act,16
U.S.C. 551. The time required to complete this information collection request is estimated to average 1 hour per response, including the time
for reviewing instructions, searching existing data sources, collecting and maintaining the data needed, and completing and reviewing the
information collection request. Send comments regarding this burden estimate or any other aspect of this information collection request,
including suggestions for reducing the burden, to Forest Service Information Collections Officer, SM.FS.InfoCollect@usda.gov, with OMB
control number 0596-0082 in the subject line.
PRIVACY ACT STATEMENT
Pursuant to 5 U.S.C. § 552a(e)(3), this Privacy Act statement serves to inform you of the following concerning the collection of the information
on this form.
Purpose: The Privacy Act of 1974 requires that the Director of Recreation, Heritage, and Volunteer Resources staff and the Director of
Lands, Minerals, and Geology Management staff provide the following statements to individuals from whom they request information.
Authority: Collection of this information solicited on this form is authorized by the Organic Administration Act,16 U.S.C. 551.

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Routine Uses: The information collected will be used by Forest Service officials to ensure that your use of National Forest System lands is
administered in accordance with applicable statutes, regulations, and directives. The information collected from you is retained in the Special
Uses Data System (SUDS) and is retrieved by the Forest Service create reports for the Agency’s Special Uses Program, generate bills for
collection of land use fees for your authorization, monitor compliance with your special use authorization, and other matters pertaining to
administration of your special use authorization. SUDS is a component of the Forest Service’s Natural Resources Manager database (NRM).
A complete list of the routine uses of NRM can be found in the system of records notice associated with this form, FS-24.

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Disclosure: The submission of this information is required to obtain or retain benefits, specifically, a special use authorization.
NONDISCRIMINATION STATEMENT

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its
agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based
on race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all
bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape,
American Sign Language, etc.) should contact the State or local Agency that administers the program or contact USDA through the
Telecommunications Relay Service at 711 (voice and TTY). Additionally, program information may be made available in languages other
than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File
a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all the information
requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit the completed form or letter to USDA by (1) mail:
U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 202509410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov.

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USDA is an equal opportunity provider, employer, and lender.

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