Step 1
Planning for Growth
You and your Superior California Economic Development loan officer will sit down and discuss your commercial real estate project and make sure the SBA 504 is the right program to finance your project. If it is, we?ll make sure you and your company are eligible to participate in the program (don't worry, 99% of all small business are eligible).
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Step 5
SBA 504 Loan Funding
Superior California Economic Development submits the closing loan documentation to the SBA and your loan is pooled with other SBA 504 loans from across the country. The loans are funded via the sale of bonds to private investors. The interest rate is set at this time based on current market conditions. Your interim loan is paid off by the bond sale and replaced by the permanent SBA 504 loan. A loan payment schedule will be sent to you and payments will be made on the first day of the month.
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Step 2
Getting Your SBA 504 &
First Mortgage Loan Approved
Your Superior California Economic Development loan officer works closely with the first mortgage lender to gather the necessary business and personal information needed to underwrite your loan. We know you are busy and your time is valuable, our close working relationship ensures you do not have to submit duplicate information saving you time.
Superior California Economic Development prepares the SBA portion of the project for SBA review. The SBA approves the loan package and sends the first mortgage lender an approval letter (SBA 504 Authorization) saying the SBA intends to fund the loan. Your first mortgage lender will approve their portion of the loan at the same time we get approval on the SBA portion of the loan, again saving you time!
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Step 4
Closing the SBA Loan
Once you move into the building, Superior California Economic Development begins the SBA 504 funding process to pay off the interim loan. We work closely with our closing attorney to prepare the closing documents for your SBA 504 loan. Once the documents are prepared, Superior California Economic Development will arrange for signing.
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Step 3
First Mortgage Lender Funding
With the SBA's Authorization, the first mortgage lender will fund the permanent and interim loan. The interim loan is used to cover construction or improvements to the property. In addition, the interim loan allows the project to get funded in a timely manner because it takes the SBA 504 additional time to fund (because it is funded by a bond). Congratulations! At this point, you own the building!
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