- Contact FDDC – to discuss eligibility to receive SBA 504 financing and the best possible loan structure.
- Submit an Application – the application form is available on our website: http://fddc.1stdistrict.org. A checklist of items that need to be attached are listed on the application.
- Loan Approvals – once FDDC has a completed application, the FDDC Board of Directors will review it. Our Board meets as needed and reviews applications as soon as possible. After the FDDC Board approves the application it is sent on for SBA credit approval. Estimated time frame is 2-3 weeks for both FDDC’s and SBA’s credit approvals. If applicable, SBA must also review any franchise agreements, appraisals, and environmental reports.
- SBA Loan Authorization – upon approval the loan authorization is issued and assures the lender and borrower that SBA will provide take-out financing.
- Interim Financing – whether the project involves construction, remodeling, or just a purchase, there is always an interim period between the time of SBA’s approval and funding – a minimum 45-60 day process.
- SBA Closing – FDDC prepares the SBA documents, obtains signatures, and requests all other documents necessary for closing. The documents are then reviewed by FDDC’s and SBA’s attorneys.
- SBA Funding – all SBA 504 projects are pooled together nationwide and bonds are sold to fund the projects once each month. At this time, the interest rate is set for the 504 projects funding during the month and the interim lender receives a wire to fund the 504 portion.
- Servicing – FDDC services the SBA 504 loan until it is paid in full. Any questions or servicing actions will continue to be handled by the FDDC team including prepayments, subordinations, assumptions, etc.
FDDC prides themselves on being very organized with continual communication with the lender and the borrower throughout the process.
Give FDDC a call to get started on your next great project!