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Simultaneous Closings |
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When the borrower’s transaction does not include construction or renovations, Business Finance Group would prefer to close at the same time as the bank. Since we are not able to fund at the settlement table, the bank would still need to provide bridge financing for a 30 to 45 day period while the bond sale process takes place, but once the 504 closing has occurred, you can be assured that the bank’s pay down will follow routinely.
One of the most difficult things we do in the 504 process is the closing. Once the borrower has settled on the building and has a loan, they want to go back to running their business, not close another loan. With the simultaneous closing, everyone (especially the borrower) is motivated, so the process is easier, and, most importantly, it saves the borrower money!
Timing however, is critical. Appraisals and environmentals must be approved by SBA, and that process is taking approximately 2 weeks. Although life insurance on the borrower is not a frequent requirement, the assignment of the policy can take six to eight weeks, so we all need to be aware of the time constraints to meet the borrower’s contract deadlines. We never want to jeopardize a borrower’s purchase contract, but if we can all work together towards a simultaneous closing, it’s a win-win-win for the banker, the borrower, and the 504 team!
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BFG Announces Addition of New Loan Officer |
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Joining our lending team to serve the central and eastern areas of Virginia is Robert (Bob) Eppes. Bob, a native of Richmond and a UVA grad (and avid Cavaliers fan), is pleased to be returning to his hometown after several years in the Baltimore, MD area working with the Maryland Department of Business Assistance in their small business lending group. Prior to that, Bob worked with several local banks both in Virginia and Maryland.
Bob’s contact information is:
5219 Hickory Park Drive, Suite A
Glen Allen, VA 23069
Cell phone: 540-846-7355
E-mail: beppes@businessfinancegroup.org
We are anxious to introduce Bob to you, so if you haven’t heard from us, please feel to call to set up a time to meet!
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Distribution List |
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If you are not receiving our monthly newsletter directly, please contact Brenda Miller at 800-305-0504 or bmiller@businessfinancegroup.org to be added to our e-mail and mailing lists.
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