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SEDA-COG SBA 504 Blog

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

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

Appraisals

SBA 504 – Life Insurance Requirements

by reichard on Tuesday, June 09, 2015 10:00 AM

Obtaining a life insurance assignment on a borrower for a loan can be a prudent additional security element in underwriting an SBA 504 loan.  Today’s blog looks into what situations life insurance is required and ones where it may not be necessary. - more

Life Insurance Assignment

SBA 504 – Bank Requirements Under the Third Party Lender Agreement

by reichard on Tuesday, June 02, 2015 3:00 PM

As I’ve mentioned on several occasions, SEDA-COG, through the involvement of an SBA 504 loan in the financing of a project, works as a partner with the lead bank.  The SBA refers to the bank as the Third Party Lender.  For every SBA 504 closing, the bank is required to sign a Third Party Lender Agreement.  Today’s blog discusses some of the requirements of the bank in the Third Party Lender Agreement. - more

Third Party Lender Agreement

SBA 504 – Ownership Changes Part 3

by reichard on Tuesday, May 26, 2015 11:00 AM

In Part 1 of ownership changes I discussed changes of ownership that are a part of the SBA 504 project.  Part 2 discussed changes of ownership prior to the submission of an application.  This final part will discuss changes of ownership after the SBA 504 loan has funded. - more

Ownership change

SBA 504 – Ownership Changes Part 2

by reichard on Tuesday, May 19, 2015 10:00 AM

Continuing from last week’s blog, this week’s edition focuses on projects involving changes in ownership of the borrower prior to the application of an SBA 504 loan.  In some cases, the small business that is looking to get an SBA 504 loan for their project undergoes changes in ownership prior to receiving a 504 loan.  Here are some things to keep in mind in order to still qualify for an SBA 504 loan. - more

Ownership change

SBA 504 – Ownership Changes Part 1

by reichard on Tuesday, May 12, 2015 3:00 PM

This week’s blog focuses on projects involving changes of ownership of a business.  In addition to looking at start-ups or expansions of existing businesses, the SBA 504 loan can be used to purchase an existing business.  Here’s how the SBA 504 can finance those transactions. - more

Ownership change

SBA 504 – Benefits to Commercial Real Estate Brokers

by reichard on Tuesday, May 05, 2015 10:00 AM

Continuing from the last two blog topics, Benefits to Banks and Benefits to Borrowers of using the SBA 504 loan program, this week’s blog focuses on a somewhat forgotten piece of the puzzle – commercial real estate brokers – and how knowledge of the SBA 504 loan can help them sell properties. - more

Benefits to brokers

SBA 504 – Benefits to the Borrower

by reichard on Tuesday, April 28, 2015 9:00 AM

Last week I talked about the benefits to the bank of using an SBA 504 loan as part of the financing for a project.  Today we’ll look at the benefits to the borrower of the SBA 504 loan program. - more

Benefits to borrower

SBA 504 – Benefits to the Bank

by reichard on Tuesday, April 21, 2015 3:00 PM

Involving an SBA 504 loan into the financing for a project is a partnership between the bank and the CDC providing the 504 loan.  But why is it advantageous for a bank to bring in the SBA 504 loan?  Today we’ll look at the benefits to the bank of the SBA 504 loan program. - more

Benefits to bank

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