HOW TO APPLY FOR A 504 LOAN

Step 2

SBA Approval 

Complete

SBA loan application submitted for approval

Step 3

Interim Financing

504 Loan Authorization issued

Loan proceeds are disbursed 

Step 4

Closing Debenture

Project complete and loans are fully disbursed

Permanent Certificate of Occupancy obtained

You now have two mortgages

Purchasing commercial real estate is a very big step. That’s why we work so hard to make our process as simple as possible.  The 504 Loan Process involves four steps. 

First step analyze limited financial information about the business, borrower and project. 

Second step involves submitting a complete application for financing.  The basic application materials are no different than what a bank typically requires.  The first two phases are generally completed within 10 business days. 

Third step is the interim funding process, which occurs after SBA approves the project and issues a commitment for the 504 loan, with the funds being provided by the participating lender. 

Fourth step completes the transaction with funds provided by TxCDC through the sale of bonds after the project is complete and permanent certificate of occupancy is received.