"Your Lending Partner"


John Reichard
Information related to the SBA 504 loan program for small businesses.

SBA 504: A Quick Guide for Lenders

by reichard on Tuesday, February 21, 2017 1:00 PM

When it comes to SBA financing for small to medium sized businesses, most lenders are at least a little familiar with the SBA 7a guaranty program.  However, most are not familiar with the SBA 504 loan program.  Not having knowledge of this beneficial loan program puts your lending institution and your borrower at a disadvantage in terms of options for structuring a financing package. - more


The Use of Non-Bank Lenders

by reichard on Tuesday, January 05, 2016 4:00 PM

Happy New Year everyone!  I’m starting out 2016 with an unconventional method of financing an SBA 504 deal – using a non-bank lender for the 50% portion of the project.  While traditionally the Third Party Lender, or participating lender alongside the SBA 504 loan, is a community, regional, or national bank, using a non-bank lender does have its advantages. - more

Non-Bank Lenders

SBA 504 – A Partnership with Lenders

by reichard on Tuesday, October 06, 2015 11:00 AM

We here at SEDA-COG and our lending partners want to see small businesses grow and succeed. Our SBA 504 loan program is the perfect fit for this and builds partnerships within our community.

Some lenders may view the SBA 504 program as a competitor in the lending marketplace, but banks are an important and valued partner because every SBA 504 project needs a senior lender.

Today, I want to showcase how we form important partnerships with banks and the tremendous benefits of the 504 loan program, making it a win for the borrower and the lender. - more


Closing and Funding of the SBA 504 Loan

by reichard on Tuesday, September 01, 2015 2:00 PM

Unlike most commercial loans, where funds are disbursed at settlement, SBA 504 loans act differently.  The primary reason is that SBA 504 loans are packaged into a bond offering and sold to investors and the proceeds of the bond sale is what provides the money for the loans.  Therefore, there is a delay between closing and the actual funding of the 504 loan.  Today’s blog topic discusses the closing and funding process and how the loan proceeds are disbursed. - more

Closing and Funding

SBA 504 – Leasehold Improvements

by reichard on Tuesday, August 18, 2015 4:00 PM

One of the eligible uses of SBA 504 funds is to finance leasehold improvements.  While a leasehold improvement project is harder to do versus other real estate needs such as a building acquisition, construction, or renovation, they can be done given the right circumstances.  This week’s blog discusses the underwriting criteria needed for financing a leasehold improvement project through an SBA 504 loan. - more

Leasehold Improvements

SBA 504 – Franchises

by reichard on Tuesday, August 11, 2015 2:00 PM

One popular type of business, especially for retired vets looking to start their own business, is a franchise.  A franchise offers pre-opening and ongoing support to the franchisee and typically involves an established product or service that may already enjoy brand-name recognition.  But in dealing with a franchised business, the SBA needs to review the franchise agreement in order to determine eligibility for an SBA 504 loan.  Today’s blog focuses on franchise reviews. - more


SBA 504 – Affiliates

by reichard on Tuesday, July 07, 2015 1:00 PM

One area in the review of a potential SBA 504 loan that is sometimes difficult to wrap your arms around deals with possible affiliated businesses to our borrower.  Determining if there are any affiliated businesses to our borrower is important for several reasons.  This week’s blog focuses on what impact affiliation might have and how the SBA determines affiliation. - more


SBA 504 – Early Payoffs

by reichard on Tuesday, June 30, 2015 3:00 PM

Because SBA 504 loans act differently than standard commercial loans, there is a process, and sometimes a cost, in paying off an SBA 504 loan early.  Today’s blog discusses the process, timing, and costs for a borrower wishing to pay off a 504 loan before it matures. - more

Early Payoffs

SBA 504 – Environmental Requirements

by reichard on Tuesday, June 23, 2015 11:00 AM

When obtaining an SBA 504 loan, the SBA has three areas it must approve – the credit itself (cash flow, collateral, etc.), the appraisal of the real estate (which I talked about last week), and the environmental condition of the property.  The SBA must approve all three in order for an SBA 504 loan to close.  This week’s blog focuses on the SBA requirements for environmental review of real estate. - more

Environmental requirements

SBA 504 – Appraisal Requirements

by reichard on Tuesday, June 16, 2015 1:00 PM

Appraisals for SBA 504 real estate projects are a very important part of the underwriting process as the SBA needs to make sure that the value of the property is such that even in a subordinate position to the bank the SBA loan is considered secured.  Today’s blog takes a look at the requirements of appraisals in 504 real estate deals. - more