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Loan Servicing
Under the SBA 504 Loan Program, a loan Authorization document is prepared upon approval of the loan application by the SBA. The Authorization sets forth the terms and conditions under which the SBA provides a guaranty on the loan. It also outlines the annual loan servicing activities and loan compliance requirements for borrowers for the term of the loan.
WBD will work with each borrower to meet the compliance requirements which include receipt of annual financial reports, confirmation of continuing insurance coverage, and other matters. During the term of the loan, WBD will also assist the small business in obtaining SBA approval for structural changes. These changes may include:
- Substitute equal or greater equity in like kinds of collateral.
- Subordinate to new third party financing.
- Make changes to life or hazard insurance.
- Release insurance proceeds for the repair or replacement of damaged collateral.
- Approve changes in form of business structure (i.e. LLC, LLP, Sub-S Corp, etc...)
- Assumption of the loan by a third party.
- Substitution of or release of guarantors.
