Supporting Small Business is our Business

Supporting Small Business is our Business

Welcome! Let’s find the right information you need to get your SBA loan approved.

Contact Us Call: 303.861.4100

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
Learn More

About SBA 504 Financing

The SBA 504 program provides small businesses with long-term, fixed-rate financing to purchase and/or refinance commercial real estate and large equipment. Preferred Lending Partners will partner with a traditional lender where the lender provides up to 50% of the loan, PLP provides up to 40%, and the borrower contributes a minimum of 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.

Steps To Financing With Us

1

STEP ONE : INITIAL BORROWER CONTACT

  • Introduction to borrower
  • Review proposed project for SBA eligibility
  • Explain financing options available and discuss structure
2

STEP TWO : PREQUALIFICATION

  • Collect preliminary financial package from borrower
  • Collect purchase contract/proposal and construction bid
  • Review project for overall creditworthiness
3

STEP THREE : SECURE A LENDER

  • Work with the buyer’s existing lender or identify lender options
  • Prepare loan and guarantee structure
  • Obtain a lender’s letter of intent for financing
4

STEP FOUR : UNDERWRITING / FILE PREPARATION

  • Collect complete underwriting package
  • CDC obtains internal committee approval; packaging docs signed
  • Lender engages an Appraisal & Environmental Report
5

STEP FIVE : SBA & LENDER APPROVAL

  • Lender issues Commitment Letter
  • SBA Terms and Conditions is issued
  • Appraisal & Environmental reports are approved by lender/SBA
6

STEP SIX: CLOSING WITH LENDER

  • Borrower provides the down payment
  • Bank funds one permanent loan and one interim loan
  • Bank funds construction loan (if applicable)
7

STEP SEVEN : CLOSING OF SBA LOAN

  • SBA loan closes with lender if no construction/renovations
  • If construction/renovations component, the SBA loan closes when:
    • Lender has fully funded all construction draws
    • CO has been obtained
    • Final lien waivers have been provided
8

STEP EIGHT : FUNDING OF SBA 504 LOAN

  • ALL SBA 504 loans fund 45-60 days after closing
  • Rates are not set until funding
  • Congratulations! The process is complete

Servicing Actions

Loan Servicing Actions

Deferment
6-month deferments available

prepayment 
SBA prepayment penalty may apply

subordination
SBA subordination to new first mortgage

release of guarantor
Ownership change in EPC/OC

release of collateral
Partial release available

FAQs

The SBA loan has a separate closing, which incur costs. The average loan closing incurs costs of $5,500. These closing costs can be paid for out of pocket or financed into the SBA Debenture.

Borrowers will sign a blank note at the SBA closing. The interest rate will be set once the loan funds. This typically occurs 45-60 days after closing.

PLP participates in SBA’s Vet Loan Advantage Program. If the borrower is a Veteran owned business, the business qualifies for a $1,000 discount in loan closing fees.

  • Provide current insurance certificates
  • Submit year-end financials/tax returns

This statement is made available from SBA by January 31st. PLP mails a copy to you during the first week of February. As a borrower, you have access to “My SBA Portal” in which you are able to download this statement on your own.

Your boutique SBA 504 lender since 1984.

Where we lend: Colorado and Arizona

Quick Links
Contact Us
hello@preferredlendingparters.com

575 Union Blvd. #202
Lakewood, CO 80228

303.861.4100

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