Let’s Work Together

Let’s Work Together

We are here to be your preferred SBA 504 lending partner. Our knowledgeable staff will assist with eligibility, loan structure, and all other SBA requirements.

Call: 303.861.4100

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Basic Eligibility Requirements

Preferred Lending Partners will ensure all basic eligibility requirements are met. Call with any questions as not all loans are “one-size-fits-all”. 

  • For-profit business
  • Occupancy
  • Job creation
  • Size standards
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Basic Loan Structure

A typical structure for an SBA 504 loan is split into the following three parts:

  • Lending Institution: Provides the borrower 50% of total project costs in a first lien position
  • Preferred Lending Partners:
Provides the borrower 40% of total project costs in a second lien position
  • Borrower: Provides 10% equity

Congress Mandated Fees

2.15%
Debenture Fees

Calculated based on the net debenture. All fees are financed into the SBA gross debenture. Fees subject to change annually.

0.5%
Bank Participation Fee

Calculated based on the first mortgage loan amount. The participating lender collects this fee from the borrower at closing.

FAQs

Additional equity is required when the business is considered a start-up and/or the building is considered special purpose.

SBA requires life insurance when the operating company is owned 100% by an individual.

No – the real estate holding (EPC) and operating company’s (OC) ownership can be different.

Any 20% or more owner of the EPC and OC are required to provide and unconditional full guarantee. Spouses with a combined ownership of 20% or more are both required to provide a unconditional full guarantee.

PLP requires a fully executed purchase contract, bank commitment letter, and internal loan committee approval.

SBA turn times vary. The typical turn time for an SBA approval is 3-5 business days.

  • US Small Business Administration and Preferred Lending Partners listed as intended users
  • Comply with USPAP requirements
  • Two valuation methods (sales/income/cost)
  • Intended occupancy stated
  • List remaining useful or economic life
  • Minimum requirement is an environmental questionnaire with RSRA
  • Phase I required for an environmentally sensitive industry
  • Phase I and Phase II must include a reliance letter and insurance
  • Straight purchase: closes simultaneously with the bank
  • Renovation/Construction project: CO issued, construction loan fully funded, and final lien waivers provided
  • Funding: occurs 45-60 days after closing

The 100% SBA guaranteed debenture is a bond that is sold to investors on Wall Street. The SBA 504 program is a no-cost program for the federal government and taxpayers, meaning it’s not taxpayer-subsidized; the program is funded through private sources and fees charged to participants cover any subsidy costs.

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Your boutique SBA 504 lender since 1984.

Where we lend: Colorado and Arizona

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Contact Us
hello@preferredlendingparters.com

575 Union Blvd. #202
Lakewood, CO 80228

303.861.4100

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