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 Why Now is a Good Time
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Steve Grelle,
Business Development Officer |
It's that time of year. I don't mean spring or baseball season, but annual review time. The once-a-year exercise when bankers review their loan portfolios.
As you examine file after file, deal after deal, keep an eye out for customers who could benefit from the 504 refinance program or may have missed the opportunity when the loan was originally completed. Whether the borrower is looking for a fixed rate, 20-year term or your bank wants to reduce its risk on those deals that may have declined in value, we can partner with you to get it done.
To learn more about the benefits of SBA 504 and the unique BOOST Loan program visit us online or give me a call.
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Avoid a Painful Loan Process |
We've all seen it - the difficult loan. You know, the kind that makes you cringe just thinking about it. Like any loan process, the SBA 504 can go smoothly or it can be a headache. Here are some tips to ensure the process is painless:
- Reach out.
Get us involved early. We'll help keep it simple and minimize the duplication of paperwork for everyone. - Complete paperwork completely.
The SBA requires all documents to be properly filled out, signed and initialed. Utilize the 504 Checklist to ensure you have the necessary paperwork. - Keep it current.
Interim financial statements, personal financial statements and the 912 form must be less than 90 days old at the time of SBA approval. - Pay application fees at time of application.
This allows us to proceed with requesting environmentals, titles, credit reports, etc. - Order appraisals early.
Although appraisals can take up to a month, if the transaction is time sensitive, SBA approval is possible prior to a complete appraisal and environmental. Also keep in mind that appraisals must have the SBA or Business Finance Corporation of St. Louis County listed as the intended users. - Submit docs early.
Trusts, criminal records, environmentals, franchise agreements, and other similar documents require separate approvals. The earlier they are submitted, the earlier they can be approved. - Address concerns early-on.
In the beginning, make us aware of concerns about a business' ability to qualify or abnormalities in its operations (sales decline, unexpected costs, disruptions in business). - Secure life insurance.
Either life insurance or a succession plan is required in most cases. A new life insurance can take time to implement and may delay the process.
By following these tips, your SBA 504 experience can be better than painless, it can be downright efficient. Just keep in mind: the earlier, the easier.
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