If you want to payoff your loan and need a prepayment estimate, then please contact 504servicing@wbd.org or call 800-536-6799. SBA 504 loans have a very specific process and set of deadlines unique to each loan.  For this reason, your note indicates a 45-day notice with intent to prepay.  Please contact the servicing department to discuss the specifice of your loan.

You can view your loan balance at any time on the amortization schedule which was provided to you when your loan was funded. Your amortization schedule is a breakdown of your monthly loan payment for the life of your loan and is provided to you in lieu of monthly statements. You may also send an email to: 504servicing@WBD.org  or call 800-536-6799 and ask for the servicing department.

Each year in early February, WBD makes available an annual statement that you may request by contacting:  504servicing@wbd.org or calling 800-536-6799 and ask for the servicing department. If you are in compliance with the SBA Authorization and loan requirements, WBD will be happy to provide the annual statement. 

At the time of closing, the small business is required to name the SBA/WBD as Mortgagee on the Building Insurance and, if necessary, as Lender’s Loss Payee for personal property insurance for full replacement cost. WBD does monitor the insurance annually and must at all times have a current copy of your hazard insurance on the building and/or business personal property such as equipment. Please contact 504servicing@wbd.org or call 800-536-6799 with any questions. 

Yes. As part of the Loan Agreement, borrowers agree to submit tax returns on the operating company each year.  Please submit your returns via email to:  504servicing@wbd.org or by mail to 4618 South Biltmore Lane, Madison, WI 53718.  (WBD will send request for the tax returns each year as a reminder.)

No. SBA 504 loan payments only cover the principal, interest, and fees of the loan. It is the borrower's responsibility to pay property taxes.  WBD does monitor each loan to insure they are paid annually.  If you have any questions regarding property taxes, please contact 504servicing@wbd.org or call 800-536-6799.

Yes. If you want to change the account that is debited for your monthly payment, you can submit a new ACH form and cancelled check to WBD.  We must receive the form Prior to the 14^th of the month (or the last business day prior if the 14th falls on a holiday or weekend) in order for the change to take effect the following month.   Please use this form: ACH Change Form.pdf and return it to us so we can make this change.  If you have any questions please contact 504servicing@wbd.org or call 608-819-0390.

The two loans involved with the SBA 504 project are now totally separate, and you do not need our approval to refinance the first mortgage. However, the new lender will probably make their financing contingent upon receiving a Subordination from the SBA.  If you plan on refinancing the first mortgage, please contact us at 504servicing@wbd.org or call 800-536-6799. 

No. The only methods of payment that SBA will accept are ACH or wire transfers. If you need assistance with making a payment, please contact 504servicing@wbd.org or call 800-536-6799.

Selling your business has direct consequences to your loan. Please contact the Servicing Department at 504servicing@wbd.org or call 800-536-6799.

Yes. SBA 504 loans are assumable, subject to credit approval and eligibility requirement. There is a 1% assumption fee and the original guarantors cannot be immediately released without the SBA’s prior written approval. Please contact 504servicing@wbd.org or call Steve Bonnell at 608-316-7146.

Information required is not that much more than banking regulators now require of commercial banks or that may be required for other financing alternatives. Initial application information is pretty standard. It becomes a greater volume when an applicant has multiple owners or affiliate businesses.

WBD understands that our customers are not SBA paperwork experts and work hard to help simplify and guide borrowers through the process. In the end WBD speaks SBA, so you don’t have to.

Typically 3 – 6 weeks, NOT 3 – 6 months. Of course, timing depends on cooperation of all parties in providing information for underwriting. Most significant delays are a result of inaction by the borrower or waiting for appraisals (which can take 4-6 weeks) or environmental issues (which can take months to repair).

WBD has received the SBA’s highest rating based on its history of properly preparing complete and accurate applications. This 4 Star status means all of our applications are given priority treatment at the SBA which further reduces turnaround time.

All of the conditions and terms of the loan will be clearly stated in the loan authorization, but for most borrowers, in addition to making payments, you only need to provide a copy of your annual financial statements and let us know how many employees you have each year.

The SBA 504 loan program is self-funding with no subsidy for loan losses provided by the federal government. As a result, a portion of the issuing costs and monthly servicing fees for each 504 loan is applied to program servicing and a loan loss reserve.

To preserve cash resources to the borrower, all of the fees on the SBA 504 loan are added to the loan amount and amortized over the term of the loan. When amortized over a 20 year bond, this adds about .3% to the effective cost. When considering other financing program alternatives and their fees, providing a client 20 yr fixed cost, protection, the fees for the 504 program become minimal.

Watch this brief video overview for answers.

WBD invests any monies remaining into other economic development activities. These activities range from the creation and operation of other loan funds to support for other organizations engaged in activities that support  WBD's mission.

WBD provides the knowledge, service and resources that foster economic development solutions to create jobs, grow businesses and build communities. Here's a video about WBD.

If your business has been struggling and you need to discuss it with us, please contact Steve Bonnell at 608-316-7146 or sbonnell@wbd.org.