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- How can I find my current loan balance?
- Can I refinance my SBA 504 loan?
- Can I pay off my SBA 504 Loan early?
- Is my SBA 504 loan assumable?
- What are the annual reporting requirements
for my SBA 504 loan? - Can I get a second SBA 504 loan?
How can I find my current loan balance?
If you still have the amortization schedule provided at loan closing, you can look at that document to determine your current balance. If you can’t find the schedule, give us a call at (800) 348-6258 and we can give you the current balance and either fax or e-mail a copy of your amortization schedule.
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Can I refinance my SBA 504 loan?
No. Refinancing an SBA 504 loan is prohibited by statute. Your loan can, however, be prepaid through private lender financing.
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Can I pay off my SBA 504 Loan early?
Yes, "prepayment" of your entire SBA 504 Loan balance is possible. (No advance payments or partial payoffs are permitted, however). As SBA is not a conventional bank, there are special procedures and deadlines to follow to pay off your loan.
- SBA's fiscal agent, Colson Services Corp. (New York), which also processes
your loan payments, handles loan prepayments. However, your contact
is still with California Statewide, as our job is to assist you through
the prepayment process with Colson Services.
- During the first half of your loan's term (10/20 year or 5/10 year) your loan carries a gradually reduced prepayment penalty, the amount of which is tied to your loan balance and interest rate. (California Statewide provides you with a schedule of your loan's prepayment penalties at loan closing, but can fax you a copy anytime at your request).
- Colson Services schedules loan prepayments for SBA 504 loans on the third Thursday of every month, only. California Statewide can provide you with an estimate of your loan's payoff amount for any month, along with prepayment instructions and schedules.
- In order to schedule an actual payoff, you need to do the following:
- You, your bank or your escrow company submits a written request
to California Statewide stating your loan number and month you wish
to prepay. California Statewide must receive this between the 23rd
and 31st of the prior month (e.g., by April 28th for May 19 payoff
deadline). California Statewide schedules your prepayment with Colson
Services.
- You must wire a $1,000 Good Faith Deposit to Colson Services by the 3 rd of the prepayment month. California Statewide provides wiring instructions. This deposit is required in order for Colson Services to process final prepayment and is subtracted from the final payoff balance.
- California Statewide receives the "final calculation" for your loan's
payoff about a week before the prepayment deadline. We fax this to
you with wiring instructions. Once you receive the final calculation,
you may wire the payoff funds at any time, as long as Colson
Services receives the wire by NOON of the payoff date, Eastern Standard
Time.
- Because SBA 504 loans are financed by the sale of bonds (debentures), the timing of prepaying a particular loan may impact the actual cost to a borrower. Please contact California Statewide to discuss your loan's specific timing parameters pertaining to prepayment.
- After your loan is paid off, California Statewide oversees the recording,
release, and return of specific loan documents in a timely manner.
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Is my SBA 504 loan assumable?
Yes, after the loan has aged four years and under certain conditions. Call us, and we will be happy to discuss specific eligibility and requirements.
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What are the annual reporting requirements for my SBA 504 loan?
- Provide evidence of hazard insurance on the project property securing the 504 loan, at the full insurance value or a replacement cost basis, with the U.S. Small Business Administration c/o California Statewide Certified Development Corporation named as a mortgagee and LOSS PAYEE, and a 438 BFU / CP 12 18 endorsement attached.
- Provide annual business tax returns and/or financial statements no
later than three months after your fiscal year ends. If your financial
information is not available, please call us at
(800) 348-6258. - When the loan reaches its two-year anniversary, provide current information on the number of employees (full-time-equivalent) at your company (this is a one-time request).
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Yes, and you can even have three or four. The number is not the limiting factor; the amount of your total SBA indebtedness is (both 504 and 7a). For new 504 loan purposes, your aggregate SBA indebtedness may not exceed $1.5 million for general small businesses, $2.0 million for small businesses meeting SBA Public Policy Goals and $4.0 million for small businesses which are manufacturers.
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