504 LOAN PROCESS
There are 3 stages to the 504 loan process: production, closing, and funding.
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The Loan Closing Officer will send a closing letter that describes the final documentation required for funding.
The bank can close on the real estate through the permanent and interim loan once we have received approvals for the loan request, appraisal and environmental.
Once the closing loan officer receives the documentation required for funding, the loan will fund within 6-8 weeks of closing. At this time, the interest rate is set for the 504 loan. Note that if there are construction or renovations related to the project, the SBA loan cannot close until after this work is completed and the borrowers have a Certificate of Occupancy.
If applicable, B:Side Capital will pay down the interim financing from the lender once funded, leaving the borrower with two loans, one from the bank and one from SBA. (Note: The lender sets the interest rate on their portion of the loan.)
B:Side Capital’s Servicing Team contacts the borrower at funding to provide them with the interest rate and amortization schedule. Our Servicing Team works with the borrower for the life of the loan.
They can be contacted at servicing@bside.org at any time with questions.