504 LOANS FINANCE
empowering economic growth
504 loan program
How do I make payments on my 504 loan?
What are the servicing fees shown on my amortization schedule for?
The CSA is Wells Fargo Corporate Trust Services. This fee covers Wells Fargo’s handling of payment processing and loan accounting.
The CDC is Growth Corp. We are responsible for servicing your loan on behalf of SBA. The CDC fee is set forth in the Code of Federal Regulations and cannot be waived.
How can I find out my loan balance?
How will I know what interest I’ve paid?
Can I change the account my 504 loan payment is deducted from?
Do I need to let you know if I change insurance agencies?
During the term of the loan, will Growth Corp help me obtain approval for structural changes on my loan?
• Substitute equal or greater equity in like kinds of collateral.
• Subordinate to new third party financing.
• Make changes to life or hazard insurance.
• Release insurance proceeds for the repair or replacement of damaged collateral.
• Approve changes in form of business structure (i.e. LLC, LLP, Sub-S Corp, etc…)
• Assumption of the loan by a third party
• Substitution of or release of guarantors.
Can I pay off my loan early? Are there prepayment penalties?
If you choose to pay off your 504 loan early, the duration of the prepayment penalty depends on the term of the loan. Typically, 504 loans are 20-year loans, which carry a 10-year prepayment penalty. The amount of the penalty depends on the debenture rate assigned to your loan. For instance, if the debenture rate was 2.5%, it would decline 10% every year for ten years. After 10 years there would no longer be a prepayment penalty.
In addition to the prepayment penalty, interest and servicing fees (not the CDC servicing fee), through the next semi-annual debenture date are included in the payoff. The debenture dates are based on the funding date of your loan. Our Servicing Department can walk you through the details.
Can I make additional payments to pay down the principal?
What if I want to expand my existing building? Can I apply for additional financing if I haven’t paid off my existing 504?
Is the ACH debit required? Or optional?
My payment was rejected. Will Wells Fargo try again later in the month?
Is there a late fee?
Will I receive a monthly statement?
When will I receive an interest statement?
What are the annual reporting requirements of my loan?
Annual business tax returns and/or signed financial statements
When the loan reaches its two year anniversary, Growth Corp will need current information on the number of employees (full-time, part-time and seasonal) at your company.
What are Site-Visits?
SBA requires that we complete site visits in certain circumstances. However, we also like to visit and say hi and thank you for your business when we are in the area.
Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender Nationwide
SBA recognized Growth Corp as an Accredited Lender after a thorough review of its policies, procedures and prior performance. The prestigious ALP status grants Growth Corp increased authority to process and close 504 loans, which provides expedited processing of loan approvals and closings.
Quality, accuracy and quick turn-around times are just some of the reasons why Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender nationwide.