Knowing What’s Required
Being familiar with the closing requirements of a CIC 504 Loan will help pave the way for a smooth CIC 504 Loan closing and funding.
CIC requires interim financial statements dated within 120 days of the CIC closing, which include:
All required insurances, outlined in the Authorization for Debenture Guarantee, must be obtained and presented at closing with the following clause:
CIC and/or US Small Business Administration
2315 Whitney Avenue, Suite 2B
Hamden, CT 06518 ISAOA ATIMA
DELAY ALERT – When an Assignment of Life Insurance is required, the Assignment must be acknowledged by the main office of the insurance company and a copy of the entire life insurance policy must be obtained and submitted with the fully executed assignment at the CIC closing. This requires sufficient lead time for the insurance company to process and complete the Assignment request before closing.
Download CIC’s Life Insurance Assignment Form; however, most life insurance companies use their own form, which is acceptable.
Borrower’s Equity Injection
CIC must prove the borrower’s required equity injection:
Proving Project costs
CIC is required to verify all project costs. This is the one aspect of the funding process where Third Party Lender participation is required for projects with construction components.
Important Practice Notes:
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.