"Your Lending Partner"

The 504 Process

The SBA 504 loan program is designed to finance long-term fixed assets such as real estate, renovations, and equipment.  Once the SBA 504 loan is approved, the partnering lending institution in the project provides a bridge loan to cover the SBA 504 loan in order for the small business to complete their project.  Once completed, the SBA 504 loan closes and pays off the bridge loan.  The small business will then have two loan payments: one to the lending institution for their loan and another for the SBA 504 loan.  Automatic monthly payments from an account that you designate makes paying the SBA 504 loan a simple process.  During the life of the loan SEDA-COG will handle any loan servicing requests as well as make sure that documentation including financial statements, employment, and insurance are kept up-to-date.

Throughout the process SEDA-COG staff will work with you to make the process from approval to closing as easy as possible.  


The 504 Process

  1. Initial Call/Meeting

  2. Discuss project and possible financing options

  3. Staff works with company to collect underwriting documentation

  4. Staff prepares loan committee presentation

  5. Loan request goes to committee for approval

  6. Staff completes loan application and submits to SBA for final approval

  7. Primary lender closes on their loan and interim loan covering the SBA 504 loan

  8. Company completes project

  9. SBA 504 loan closes and takes out interim bank financing