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Wisconsin Business Development provides all 504 loan-servicing functions. WBD reviews all servicing requests for eligibility and reasonableness and submits the request to the SBA servicing center in Fresno California. In most cases, WBD receives a reply within 3 business days. To help expedite servicing requests, WBD requires that all reporting requirements have been met. This includes providing the following:
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- Annual Financial Statement
- Current Interim Financial Statement
- Copy of paid Property Tax receipt
- Proof that the hazard insurance on the project property is up-to-date
- Other reporting requirements as specified in the SBA Authorization for Debenture Guaranty
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WBD has certain unilateral authority and simply notifies the SBA of certain actions. This authority is similar to the unilateral authority of 7(a) lenders. These actions include:
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- Release collateral up to a cumulative value of 20% of original loan amount.
- Substitute equal or greater equity in like kinds of collateral.
- Subordinate to new third party financing, if the terms are more favorable, the borrower receives no funds, and that the term equals or exceeds the term of the original loan.
- Make changes to life insurance or hazard insurance requirements, release insurance proceeds for the repair or replacement of damaged collateral, and may release the cash surrender value of life insurance.
- Approve changes in form of business structure i.e. LLC, LLP, Sub-S Corp etc.
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General Servicing Requests
I. Collateral Actions
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- Release collateral, both project and non-project.
- Subordination of SBA collateral for refinance, or due to growth and expansion.
- Substitution/exchange of collateral caused by sale of business etc.
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II. Guarantor Actions
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- Release or substitution of Guarantors resulting from retirement, sale of business or assumption.
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III. Loan Assumptions
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- If the business is sold, qualified buyers can assume the loan, often with full release of original borrowers and guarantors. A request to assume an existing SBA 504 loan will be reviewed for eligibility and credit worthiness. There is a required 1% assumption fee plus reimbursement for legal fees and other out-of-pocket fees.
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IV. Loan Payment Deferments
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P&I for up to 6 months may be deferred, if repaid within 5 years.
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V. Insurance
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- The borrower must maintain appropriate insurance coverage, life and hazard, as specified in the SBA Authorization for Debenture Guaranty. WBD must be notified of any changes in coverage.
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VI. Loan Pre-Payments
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For specifics contact:
John L. Macke, Sr. Vice President & Portfolio Manager
Wisconsin Business Development Finance Corporation
P.O. Box 2717, Madison, Wisconsin 53701-2717
Phone: 608-819-0390 x 116
E-mail: jmacke@wbd.org
Fax: 608-819-0393 |
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VII. Change in Account for Monthly Loan Payments
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Monthly payments are withdrawn automatically from a designated account, through the ACH system. This is set-up at the original loan closing. To change accounts, the borrower must submit a new Debit Form and a blank VOID check from the new account. The Debit form can be printed directly from your computer. The form should be signed and forwarded, along with a blank VOID check to:
John L. Macke, Sr. Vice President & Portfolio Manager
Wisconsin Business Development Finance Corporation
P.O. Box 2717
Madison, Wisconsin 53701-2717
Generally, it takes 30 days to process a change of account request. |
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Click here to get ACH change form
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