Frequently Asked Questions (FAQs)What are the advantages of a SBA 504 Loan? ▼
How long will it take to get an SBA 504 loan through CIC? ▼Timing depends on the borrower and the ability to deliver financials and cost documents early in the process. A loan package can be done quickly with complete information and documents. CIC routinely meets the demands of a 45-day real estate contract contingency. What fees are involved? ▼There are fees that are required by SBA for every loan that is funded, including an application fee. These fees are 2.65% of the loan and are financed as a part of the loan. Additional servicing fees associated with the loan are reflected in the effective interest rate. There are out-of-pocket expenses related to the loan closing, which is autonomous from the bank closing.
The borrower's out-of-pocket expenses include but are not limited to:
What are the terms of an SBA 504 Loan with CIC? ▼
What type of equipment can be financed with a SBA 504 Loan? ▼Long-term machinery and equipment with a useful life greater than 10 years. What amount of equity is required for the SBA 504 Loan Progr ▼
What collateral is taken to secure SBA 504 Loan with CIC? ▼
An owner’s personal home is not usually required as collateral. In most cases, the project property will be the sole collateral securing a loan. Additional collateral is only required when there is a deficiency in the appraised value of the project property, or if there are other serious credit issues. Will the borrower need to personally guarantee the CIC 504 l ▼SBA requires guarantees from all individuals and legal entities that hold a 20% or more ownership interest in either the project property or the operating company. What are the basic eligibility required for an SBA 504 loan? ▼
*For a complete list of occupancy requirements, contact our loan officers. What are the occupancy requirements? ▼
*For a complete list of occupancy requirements, contact our loan officers. How does a borrower know what was paid in interest and fees ▼
Can a borrower pre-pay a SBA 504 Loan? ▼Unlike standard bank loans, SBA-funded loans follow strict guidelines. Is a SBA 504 loan assumable? ▼If you are selling the building, a qualified buyer can assume your loan for a $1,000 assumption fee. The pre-payment penalty does not apply in this instance. What is CIC’s area of operation? ▼Connecticut and Rhode Island. How does a borrower apply for an SBA 504 Loan with CIC? ▼Contact us via phone or email. We’re here to help you secure financing and succeed. |
CIC is an economic development lender contributing financial expertise and practical guidance to small business entrepreneurs in Connecticut and Rhode Island who have powerful ideas and need more power to grow them.