Best Practices to Close SBA 504 Loans Faster (Part 3)

Part 3 of 3 Part Blog Series

Satisfy your customers and avoid closing delays with these top tips to expedite closing!

Welcome back to our series on tips to avoid common closing delays! Here is the final set of tips to avoid some of the challenges that can arise in the closing process. 

1.     TITLE WORK ISSUES

Keep in mind that even construction that is not part of the SBA project must be documented as completed. We need to ensure that there are no mechanics’ liens filed and any other liens on the project property have been released. A new survey may also be required if there is new construction or a change to the building footprint.

2.    appraisal re-certification

Build in time for appraisal re-certifications. These are required when construction represents a third of the total loan project cost. They must be completed by the original appraiser and ordered after construction is complete. The certification needs to verify that the project was completed without any significant deviations from the original plans that were used to obtain the “As Complete” valuation.

3.     Combined interim and permanent loan issues

Ensure your permanent loan is in place prior to the SBA loan closing. In addition, provide a draft of your Note and Deed Modifications. These are needed prior to closing. However, they can be signed at the SBA Loan closing and recorded upon funding if you prefer.

We hope you found this series valuable! In case you missed them, you can read Part 1 and Part 2 of the series here.

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