Modifying Your Loan
BEFCOR also acts as the conduit to SBA to process loan servicing modifications. Here are some examples:
- Subordinate to allow another bank to replace the existing senior lender
- Subordination of SBA collateral to permit refinancing for business growth and expansion
- Substitute equal or greater equity in collateral
- Release of collateral
- Recognize changes in the organizational form of the borrower such as conversion to a LLC, LLP, Subchapter S Corporation, or C Corporation
- Release or substitution of obligors resulting from retirement, sale of the operating business or 504 loan assumption
- Loan assumptions where the business relocates or is sold. Qualified buyers can assume the loan, often with the release of original obligors. There is a required 1% assumption fee plus reimbursement for legal fees and other out-of-pocket fees
- Deferment of monthly 504 loan payment
- Changes to the account used for the automatic draft of the 504 monthly payment