504 Basics

Help Your Clients Grow With WBD and the SBA 504 Loan Program

WBD Can Help Support Your Institution's SBA Lending Operations

Learn from the best - WBD - for all your SBA related training needs

The SBA 504 Loan is a valuable tool for any lending institution aimed at helping small businesses grow and create jobs. The advantages for both the institution and borrower are numerous.

Advantages of the 504 Program for Lending Institution

• Your 50% LTV position from the outset, and first position to collect if things go wrong, reduce your risk and allow you to take a few more chances on growing businesses.

• Utilizing the program may allow you to do deals in excess of your legal lending limit. Additionally, WBD is the only participant you can find that is not interested in stealing your customer relationship.

• Unlike the SBA 7(a) program, your staff does not need to have any SBA training or experience. WBD handles all of the SBA forms and contacts for you and your client.

• Win more deals with the super competitive, long term fixed rates the 504 program offers.

Advantages for your Borrowers (even vs. the SBA 7(a) Program)

• Low Rates! Because we raise our money by a debenture sale our rates are about as good as you can find!

• Long Terms! Up to 25 years

• Fixed Rates! Our rates are not only low, but fixed for the life of the loan!

• Less Money Down! Most often working with WBD will mean your customer will need only 10% down.

• Way less fees than the 7(a) program for loans over about $300,000. The larger the loan the greater the savings.

INTERESTED, BUT WANT TO LEARN MORE?

• See our Smart business is knowing all your options guide to find out more about commercial financing options and the SBA 504 program
• Use our 504 Calculator to see how it would work on your project
• Go to our 'WBD Video Library' to watch a 3 minute video on how the SBA 504 program works and to see our other 504 informational videos
• View/download our one page information sheet on the 504 program
• Go to our FAQ for current borrowers to share answers to common questions for your current 504 clients
• Interested in co-branding our 504 program marketing materials with your institution’s logo and contact information? Contact Darren Paul in the Marketing department at dpaul@wbd.org.

The SBA 504 Refinance Program has been fully updated with new rules set out by the SBA, making it easier than ever for business owners to refinance their existings loans:

Key Points of the Refinance Program:

• Can now refinance SBA 7(a) and other government guaranteed debt - some restrictions apply
• Original use of proceeds for Qualified Debt was at least 85% to acquire or improve a 504 eligible asset which will secure the 504 refinance project
• Loan to be refinanced must have been in place for six months
• Appraisal required, current within 12 months
• WBD can work with any local lender
• WBD handles all interactions and paperwork with the SBA for both banker and borrower

INTERESTED, BUT WANT TO LEARN MORE?

• View/download our one page information sheet on the 504 refi program
• View/download our 504 Refinance Checklist that can help you understand if you qualify (or contact a WBD loan officer)
• View the NADCO Tech Brief 504 Refinance Q&A
• View the Q&A with Wayne Williams
• View and Fill Out this Refi Structure Worksheet to calculate your potential annual savings and other payback information

We Speak SBA, so you don’t have to!

 
The WBD staff has hundreds of years of experience in commercial lending and working with the SBA. We’re here to help you and your customers, succeed.
 
WBD's Service Company is able to offer assistance and a variety of services directly to your institution to provide support for your SBA lending operations. 

Support for your SBA efforts:

• SBA 7(a) loan packaging services – Want to utilize the 7(a) program, but don’t have the internal expertise? Let WBD handle your loan application process on your behalf, including File and Portfolio Review and SBA Package Purchases.
• Guidance and support for
  • Closing
  • Loan Servicing
  • Secondary Market Loan Sales
• Live technical support – Think you can handle the SBA process on your own, but want a partner who is accessible and speaks your language to help you when you get stuck? WBD offers technical support packages that give you access to real, live people who know how to help and are available when you need them.

Join the nearly 100 Banks and Credit Unions that have an LSP Agreement with WBD, and let us:

1. Educate about when to use a guaranteed loan
2. Ensure loan is eligible for a valid guaranty
3. Prepare all of the SBA paperwork
4. Navigate SBA’s process on behalf of lender
5. Assist with secondary market loan sales
6. Validate file completeness to mitigate repair and denial risk

WBD Premier Membership

Interested in having an on-call partner when it comes to your SBA lending needs and questions? Our Premier Service Members have access to:

• WBD on demand live assistance
• Priority 7(a) packaging services
• Discounts on training

For more information about WBD's Lender Services you can download this PDF: 

WBDSC Services Brochure

For more information about WBD Lender Service options contact:

Becky Schneider
Lender Services Manager
WBD Service Company  |  920-966-1483 |  Email: bschneider@wbd.org

If you want to speak SBA like we do, we can help!

From understanding the SBA 504 Program to helping you set up an SBA lending program at your bank, WBD staff conducts trainings for hundreds of lenders every year. Contact us for all of your SBA related training needs. We specialize in creating and delivering custom training and support materials to meet the needs of lenders across our service areas.

To learn more about the courses that WBD offers, check out our SBA Training Curriculum page. 

For more information about WBD Lender Service options contact:

Jason Monnett
Senior Vice President and Senior Lender
920-966-1479 |  Email: jmonnett@wbd.org

Here are just some of the courses WBD offers. Click on the course for more details and upcoming training sessions.