Loan Structure

For Borrowers

SFV-FDC helps promote economic development and growth of the small business community.

Unlike some organizations, SFV-FDC will continue to be your partner after the funding is in hand. We are committed to remaining your partner through the life of your loan. SFV-FDC has the capacity to provide multiple loans to businesses to keep pace with the businesses’ growth.

For Brokers

For many small business owners, large down payments and refinancing risks make purchasing commercial real estate difficult, if not impossible.

The 504 loan’s low down payment and fixed, long-term interest rate can help make real estate ownership a reality your business owners clients-enabling you to get your clients into their own buildings faster.

SFV-FDC can help you lower the barriers to commercial real estate ownership. If your client is expanding, opening additional locations or building a new facility, we can help.

For Lenders

The SBA 504 loan offers benefits to both borrowers and lenders. The loan’s shared financing structure reduces risk for lenders, and its low down payment and long-term, fixed interest rate puts financing within reach for businesses that may not qualify for conventional loans.

Benefits to lenders

  • Low loan-to-value, typically 50 percent
  • Lower reserve requirement
  • Reduced credit risk through partnership funding
  • CRA credits
  • SFV-FDC prepares the SBA paperwork

SFV-FDC simplifies a complex process

SFV-FDC is an SBA CDC, authorized to process, close, service and liquidate SBA 504 loans. The result is a smooth, expedited process. Additionally, our simultaneous signing process on straight commercial real estate purchases reduces hassle, paperwork and risk for everyone involved.

SBA 504 Debt Refinance Program

  • 85% or more of the debt(s) to be refinanced used eligible for 504 purposes
  • The maturity date on the note to be refinanced must be on or before 12/31/2012
  • The borrower must be current on the note(s) borrower cannot be past due for more than 30 days and no payment deferrals during the past 12 months
  • Debt(s) must be outstanding for at least 2 years
  • Subject business must be in operation at least 2 years

3 Key items needed for 504 Debt Refinance Program

  • Copy of notes to pay off including the original note and any extensions or amendments
  • Statement of original use of proceeds
  • Settlement statements, for original financing