SBA’s current wait time for approval on 504 applications is approximately 20 business days so it is crucial to work together as a team with First District Development Company (FDDC), the small business owner, and the lender to ensure a smooth application. It’s always a great idea to have an initial meeting with your FDDC loan officer and lending team to jump start the process.
- Include First District Development Company as early as possible to aid in the efficiency of funding. The earlier the better!
- Discuss the client’s timeline with FDDC so everyone is on the same page
- Be sure to disclose right away any prior bankruptcies, pending lawsuits or prior misdemeanors/felonies of the principals
- Let FDDC know about any affiliate businesses of the principals
- Provide any information on franchise, dealing, or licensing used or needed for the business
- Make sure to include SBA/FDDC as an intended user on the appraisal
Even though the SBA 504 program is take-out financing, it is important to start the application process prior to any construction or interim financing when possible. It will help to make an easy transition to permanent financing when the project is complete.