The 504 Report - February 2006

Current Rates
February Bond Sale Rate: 6.43% (20 year fixed rate)
	As little as 10% down and a below market, 20 year fixed rate! What a deal!
	504 Round Table

	NADCO’s President Chris Crawford, SBA’s Stephanie Watkins, BFG’s Sally Robertson, and SBA’s Ron Bew at Business Finance Group’s 504 Round Table held February 1st at the Piedmont Country Club in Haymarket, Virginia.

Business Finance Group Holds Successful 504 Roundtable

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Steve Van Order shared information on the 504 bond sale process and interest rate forecasts followed by a brain storming session with the 65 attendees suggesting improvements to the 504 program. David Evinger of Cardinal Bank suggested that the interim loan be structured on SBA approved documents so that the note could be sold to SBA instead of having another closing. Realizing that this would save thousands of dollars for small business owners, this suggestion is being fast tracked. We appreciate everyone’s participation and ideas!

504 Closing Tips: Appraisals

Appraisal reports should be addressed to the first trust lender, Business Finance Group and the SBA. SBA will not accept restricted appraisals. For projects less than $1 million, a limited appraisal is acceptable as long as it addresses the comparable sales method. Summary appraisals are acceptable. The appraiser is not required to hold an MAI certification, but must be state-certified. Appraisals are not required on additional collateral, only the project collateral.

Choosing a CDC

How do you choose among the CDCs seeking your business? Fees are essentially the same (make sure the CDC is charging the minimum 5/8% servicing fee – this is the only fee that can vary and may be as high as 1%). Service and experience are what differentiates the CDCs. Service goes beyond a quick approval process – who will close your 504 loan and who will process servicing requests over the life of the loan? Business Finance Group has loan officers with no less than 6 years experience (most with much more!), an experienced closing staff to assure your interim loan will be paid off and help reduce the cost of legal counsel for your customer, and an experienced servicing staff to make sure that future changes to the loan are handled quickly. While we have added staff to handle growth, our core staff has remained the same since 1998. You and your customer will benefit from the experience levels and stability of Business Finance Group’s staff.

Business Finance Group Initiates Electronic Surveys

You will be receiving e-mails from Sally with a link to complete a brief electronic survey on the 504 loan that was approved or funded during the month. We are focused on providing the best possible service – please respond with honest feedback! Thanks!