Where to Start?

  1. Learn how your business can profit from a 504 loan.
  2. Contact us to discuss your goals. We'll help you get organized and direct you towards the next step in growing your business
  3. Fill out and submit a loan application

Closing the 504 Loan

Key Points for Bankers

The 504 loan closing assures that the bank's interim loan will be paid down; this is usually 40% of the project cost. These are some things the loan officer needs to know to help assure that a timely closing results:

Three notifications of approval from SBA must be received before closing can commence:

  • 504 loan approval
  • Approval of the project appraisal
  • Approval of the environmental documentation for the project

Note: The engagement letters initiated by the bank for both the appraisal and the environmental reports must provide for use of the reports by BEFCOR and SBA.

The bank must certify that the required equity injection was made by the borrower. This is best accomplished prior to closing of the interim bank loan.

Proper evidence may include:

  • A copy of a check along with proof it was processed
  • A copy of a settlement statement and bank statement showing evidenced funds were deposited

Unacceptable evidence includes:

  • A gift letter
  • A promissory note
  • A financial statement

The project loan proceeds must be used as provided in the Loan Authorization Disbursements must:

  • Be made by joint payee check where possible; or
  • Be supported by such evidence as cancelled checks or paid receipts
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