Did You Know?

Combined, Business Finance Group‘s staff has over 150 years of SBA 504 experience. We are fortunate to have staff who enjoy working with small businesses as well as with 504 financing, starting with our President who has been in the 504 lending business for 16 years. Our Loan Officers have over 71 years of combined 504 experience (the average is 12 years each!). Our Credit Team has 28 years of combined 504 experience while our Closing Team has 18 years experience funding 504 loans. Our Servicing Team has 12 years of combined SBA 504 experience. AND, over 75% of our staff have prior bank experience.

Navigating the SBA regulations can prove challenging. When the rules aren’t crystal clear, an experienced team of 504 experts can help guide SBA towards a favorable decision for the small business owner. All of BFG’s staff experience is available to help you help your small business clients successfully conclude a 504 loan!

Financial Covenants and Defaults: We have received a number of questions from our bank partners about problem loan situations and financial covenants. The first trust loan to a 504 loan can only be called in the event there is a payment default. In the early years of the program, we asked banks to modify their loan documents to remove any “early call features” like financial covenants. Later, SBA revised the Third Party Lender Agreement that all banks sign at the time of the 504 loan closing to bring bank loan documents into compliance with SBA’s requirements. When signing the Third Party Lender Agreement, the bank agrees that “early call features” will not create an event of default, and the loan will not be called before maturity except for a payment default. If you have any questions, we can provide further CRF, SOP and document references. !

October Fundings

BFG funded eleven loans totaling $5.0 million in the October Bond sale. Our participating first trust lending partners included: Access National Bank, Bank of America, Burke & Herbert Bank and Trust Company, Commerce First Bank, K Bank, Sandy Spring Bank, SunTrust Bank, and The Fauquier Bank. Thanks for your support! The Borrowers who received the record low October interest rate included two manufacturers, medical and dental practices, a physical therapy practice, a car wash, a book store, a food service company, a janitorial service firm, and a computer consulting company. As a result of the 504 loans, 135 new jobs are expected to be created while two veteran, one woman, four minority and one rural business were assisted.