As soon as a 504 loan has been approved, one of Growth Corp's Closing Specialists is assigned to the project and will thoroughly prepare all the paperwork necessary for closing. Keep in mind...borrowers will continue to work with their bank throughout the process, and the banker will assist the borrower in gathering the following documents necessary for closing:
- Appraisal
- Environmental
- Title Work
- The Bank's Note and Mortgage
- Organizational Docs
- Life Insurance Policies...these can be time consuming, so please plan ahead
Additional documents will also be needed to complete the closing book, but can be collected while awaiting closing or at closing.
The timing of funding will then depend on where we are in the current cycle, as we are always working 30-60 days out. Here's why...once our legal department gets all the closing documents prepared, closing attorneys will schedule a closing. Post-closing, the complete file is then turned over to SBA and the loan is pooled all the other 504 loans funded in the same month. The pool of loans is sold to investors in the form of debentures...typically on the first Tuesday of every month.
The borrower's interest rate will be determined from the sale of those debentures and is based on current market conditions. Go to our website to view a rate history chart. A borrower's monthly payment will include principal, interest and a loan servicing/guaranty fee.
Once the rate is established, the borrower will receive their amortization schedule and begin making payments to a Loan Servicing Agent (Wells Fargo). This organization handles the payment processing and loan accounting for all SBA 504 loans. Keep in mind...Growth Corp's Servicing Department will answer any questions regarding the loan, including bank account changes, payoffs, etc.
Growth Corp knows how important it is to get projects closed and funded in a timely manner...we will work diligently to ensure this happens.
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