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Closing and Funding of the SBA 504 Loan

by reichard on Tuesday, September 1, 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