First, thank you for giving our Team the opportunity to be part of your business’ growth. 

See details below for SBA 504 and CDFI borrowers.

SBA 504 Borrowers
CDFI Borrowers

SBA 504

During the life of your loan, it is not unusual that the original terms or conditions may need to be modified. We are pleased to work with you on a request to SBA. Examples of common request include:

  • Bank account changes (for your SBA loan payment drafts)
  • Refinancing your bank loan
  • Changes to loan collateral
  • Changes in the organizational structure or ownership of your business
  • Sale of your business
  • Deferment of payments if you are facing financial challenges.

Once your SBA 504 loan is approved, our team will continue to support your business as it grows.  BEFCOR will manage your SBA 504 loan from origination to full repayment.

As you begin repaying your SBA loan, we will collect a few documents annually or periodically, including:

  • Tax Returns and Financial Statements 
  • Insurance Documentation
  • Evidence Property Taxes are Current
  • Job Creation Form (2-year anniversary, only) – required by SBA for monitoring program’s effectiveness

We also visit occasionally to see how your businesses are growing.  

When we contact you for documentation, please know we appreciate your responsiveness.


If you have any questions during the repayment of your loan, our Portfolio Team is your best resource: 

Shannon Brunet
Portfolio Manager
704.414.3004

Additional 504 Information

Growth During Repayment
Many 504 borrowers experience rapid growth after receiving a 504 loan. We can often assist with additional 504 loans to support this growth. Future 504 loans with BEFCOR are easier and faster because we already have an established loan file. We would be honored to assist you with future loans, so please contact us as soon as you decide to expand.

Anytime we can help, we are happy to be a resource for you.
Changes or Modifications During Repayment
  • Refinance of your bank loan (in 1st position) with another lender. We will request a Collateral Subordination of SBA. (Note: Occasionally, a new lender replacing your original bank loan may not be aware that SBA can allow a subordination – contact us to discuss and avoid refinancing your low-rate SBA 504 loan)
  • Collateral modifications
  • Organizational structure changes or ownership changes
  • Loan assumptions if the business relocates or is sold. Qualified buyers can assume the loan, often with the release of original obligors.
  • Deferment of monthly 504 loan payments if the business is facing short-term financial challenges.
  • Changes to your bank account used for the automatic draft of the 504 monthly payment.
504 Loan Prepayments
Prepaying a 504 loan differs from other loans. Because 504 loans are funded through the sale of debentures (which bring the amazing low interest rates!), the process takes planning and a few extra steps.

Timing: PLEASE call us early so we can advise and guide you – it may save you money. The following is an overview of the prepayment process:
  • Prepayment near semi-annual dates is preferred and is less expensive. Call us as soon as you know you may be prepaying so we can help you determine the best time to prepay. Timing matters!
  • Prepayments can only be scheduled during a window of time each month. Per your loan agreement, 45 days advance notice must be provided so that the prepayment date can be scheduled.
Prepayment Amount: Prepayment premiums or penalties, which are fully described in loan documents, are incurred on 504 loans prepaid prior to the midpoint of the loan (10 years on loan with a 20 or 25-year maturity and 5 years on a 10-year maturity 504 loan). Because the amount of the penalty is related to the interest rate, the penalty is often less than perceived. If you prepay during the periods mentioned, please note that we do not have authority to waive any costs.

A prepayment estimate will be provided to you soon after the prepayment date has been established.

SBA requires that prepayments be made by wire.

CDFI Borrowers

Our support for your business continues even after your CDFI loan closes. Our team is here to provide resources and be a part of your business's growth.

During your loan repayment, we offer assistance with strategic planning, cash flow management, and more.

As you begin repaying your CDFI loan, we will gather a few documents from you either annually or periodically, including:

  • Tax Returns and Financial Statements 
  • Insurance Documentation
  • Evidence Property Taxes are Current

We also visit occasionally to see how our businesses are growing.  This gives us an opportunity to answer questions or offer resources. 

Please contact us anytime, especially if: 

  • You anticipate near-term cash flow challenges.   We may be able to help.
  • You have questions about your loan payments.
  • You expect changes in  your business – such as ownership changes, etc. (Please call BEFORE making changes.)
  • You are growing and need additional financing 

 

If you have any questions during the repayment of your loan, our Portfolio Team is your best resource: 

Scott Wolford
704.414.3022