A loan amendment is a change to the original terms and conditions of the loan agreement. The type of amendment is determined by the requested changes to the loan agreement.
- Short-term amendment, 90 days or less, and
- Does not amend the original committed loan amount.
- Long-term amendment, 91 days or more, and/or
- Changes that amend the original committed loan amount.
There are three traditional triggers for an amendment:
- Additional term required
- Additional funds required for the budget
- Additional interest reserve required