Yes, or even more than 2. The amount of your total SBA indebtedness is the limiting factor, not the number of SBA loans.

Generally, the project property being financed will be the sole collateral securing the loan. Additional collateral may be required if there is a deficiency in the appraised value of the project property or to mitigate a credit risk.

SBA requires guarantees from all individuals and legal entities that hold a 20% or more ownership interest in either the project property or the operating company.

Yes, a real estate holding company can own the building as long as it is 100% leased to the small business (operating company).

If the project involves an Existing Building purchase, the occupancy requirement of the borrower’s business is 50%. For a New Construction project, the initial occupancy requirement is 60% and after 10 years the requirement is 80%, therefore, the allowable Permanent … Continue reading →

Yes, for the first half of the life of the loan. This SBA requirement exists to keep the market of investors who provide funds for the 504 loans whole. The amount of the prepayment fee decreases each year and goes … Continue reading →

Yes. The loan can be prepaid early in its entirety (see prepayment penalty description below). No advance payments or partial payoffs are permitted. SBA is not a conventional bank, therefore special procedures and deadlines exist for prepaying your 504 loan … Continue reading →

SBA 504 loan interest rates are determined at the time the 504 debenture pool is sold to the private market. The interest rates are tied to the 5 or 10-year U.S. Treasury rate in effect on the date of funding … Continue reading →

When your SBA loan is funded, origination fees totaling approximately 2.65% of your net debenture amount plus an attorney closing fee of approximately $2,500 will be incurred. These fees are included in the principal amount and are financed over the … Continue reading →

With complete information and documentation received from the borrower, NGCDC, Inc. can complete a loan package relatively quickly. Other timing factors including an appraisal and environmental reports can also affect the timing. NGCDC, Inc. cares about your business and will … Continue reading →