Did You Know
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Commercial Real Estate Partners
Advantages of the SBA 504
- Limited cash outlay for the borrower
- Conserve working capital – 10% down payment
- Offset interest rate risks – 40% of project tied to fixed rate
- Extended amortization provides lower monthly payment
Advantages of using SCED
- Expertise in originating and servicing SBA 504 loans since 1991
- No hand offs – the loan will stay with the same loan officer from initial application to approval to closing – SCED EXCLUSIVE
- Additional funding availability – under certain circumstances SCED's business loan program can be combined with a SBA 504 to provide additional capital.
- No loan packaging deposit
- 48-hour prequalification
SBA 504 Loan Roadmap
- Planning for Growth
- Discuss potential SBA 504 project
- Review project eligibility, borrower capacity
- If necessary, find a lender for the project
- Getting Loans Approved
- Work with borrower and lender to gather necessary business and personal information needed by SBA
- Prepare loan package for SBA review
- SBA approves loan package and authorization is sent to the lender
- On a parallel path, lender approves their permanent and interim loans
- Bank Funding
- With SBA's authorization the lender will fund the permanent (first deed of trust) and interim loan
- Borrower owns the building at this point
- Closing the SBA 504 loan
- Once the borrower moves into the building we begin the SBA 504 funding process to pay off the interim loan
- Our attorney works with the borrower to prepare closing documents for the SBA loan
- We work with the borrower to arrange signing of the SBA loan documents
- SBA 504 Funding
- Loan is pooled with other 504 loans from across the country and funded via the sale of bonds to private investors. The interest rate is set at this time based on current market conditions
- Lender interim loan is paid off by the bond sales and replaced with the permanent SBA 504 loan
- Loan payment schedule will sent to the borrower and payments will be made the first day of the month
