How It Works


The first step is to determine if the borrower meets the minimum standard qualifications by using our interactive pre-qualification form. You can also contact us and we’ll be happy to walk you through the process. If qualified, we will work with both the bank and borrower to identify the best option.


The bank will issue a commitment letter and we will complete the underwriting and prepare the SBA 504 application. Once the borrower signs, we will submit the package to the SBA for approval.


When the SBA issues authorization for the 504 loan, the bank will then close on the full amount of financing.


The customer can now begin construction or move into an existing facility. The bank will draw funds and fully fund the interim loan. After completion, the borrower can occupy the property.


We will need to certify the project is complete and funding has occurred. TxCDC will then prepare all SBA loan documents and have the borrower sign.


SBA proceeds will pay down the 504 portion of the bank debt and the borrower will begin to make monthly loan payments to SBA as well as the 1st lien note payments to the bank.

Are you ready? Click here to contact TxCDC or Apply Now.